Longfor Group Holdings Limited (HKG:960) shareholders are probably feeling a little disappointed, since its shares fell 8.9% to HK$6.07 in the week after its latest half-yearly results. Revenues were CN¥40b, 10% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥0.15 being in line with what the analysts forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Longfor Group Holdings' 15 analysts are now forecasting revenues of CN¥80.3b in 2026. This would be a reasonable 2.4% improvement in revenue compared to the last 12 months. The statutory loss per share is expected to greatly reduce in the near future, narrowing 1,002% to CN¥0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥80.5b and earnings per share (EPS) of CN¥0.04 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
See our latest analysis for Longfor Group Holdings
The consensus price target held steady at HK$9.45, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Longfor Group Holdings analyst has a price target of HK$13.27 per share, while the most pessimistic values it at HK$6.91. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Longfor Group Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.9% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 18% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.6% annually. So it looks like Longfor Group Holdings is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest low-light for us was that the forecasts for Longfor Group Holdings dropped from profits to a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at HK$9.45, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Longfor Group Holdings analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Longfor Group Holdings .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.