Longfor Group Holdings (SEHK:960) Stock Recovery Narrative Runs Into Revenue Erosion

Longfor Group Holdings stock closed at HK$6.79 on the day of its H1 2026 earnings, capping a weak three month stretch with the share price down about 14% over 90 days. Yet the headline from the results is not the chart. It is a profit line that has swung back into the black in the half year, with basic earnings per share of C¥0.285 and net income of C¥1,961m after a loss in late 2025.

For you as an investor, the tension now sits between that return to profit and a longer term picture that still shows trailing 12 month losses and interest costs that recent earnings do not comfortably cover. At the same time, the stock trades on a very low 0.5x price to sales ratio compared with both the wider Hong Kong real estate sector and closer peers. The rest of this review breaks down whether this latest half year narrows that gap or just buys Longfor Group Holdings more time.

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H1 2026 Earnings Summary

• Total Revenue (H1 2026 vs H1 2025): C¥39,795.243m vs. C¥58,750.323m (revenue declined 32.3%)
• Net Income / Loss (H1 2026 vs H1 2025): C¥1,961.42m profit vs. C¥3,215.852m profit (net income declined 39.0%)
• Basic EPS (H1 2026 vs H1 2025): C¥0.285 vs. C¥0.476821 (basic EPS declined 40.2%)
• Trailing 12 Month Net Income / Loss (H1 2026 vs H1 2025 TTM): C¥232.582m loss vs. C¥7,751.307m profit (shifted from profit to loss on a trailing basis)

Prefer clean charts instead of line after line of earnings figures and debt metrics? See Longfor Group Holdings' full financial picture, including a clear view of its balance sheet strength, in the visual company report for Longfor Group Holdings.

Longfor bullish story leans on profit return

For a bullish view, the key support is that Longfor Group Holdings has moved back to profit in H1 2026 while the sector backdrop remains tough. Net income of C¥1,961.42m and basic EPS of C¥0.285 show the business can still earn money even as revenue fell 32.3% year on year. Combined with earlier commentary about improving mall rental performance and progress on deleveraging, these results provide some backing to the idea that Longfor’s broader platform is not purely tied to residential development swings.

Revenue slide keeps Longfor risks in focus

The bearish worry around Longfor Group Holdings is also visible. Revenue dropped from C¥58,750.323m to C¥39,795.243m and net profit fell 39.0% versus H1 2025. On a trailing 12 month view the company still shows a loss of C¥232.582m after a prior profit of C¥7,751.307m, which aligns with concerns about pressure on development earnings. Even with a profitable half and commentary about de stocking to protect the balance sheet, the overall trend in sales and trailing profit keeps risk around the core development business firmly in focus.

Compare Longfor Group Holdings' return to profit and low P/S valuation with what institutions are expecting from here. Reveal whether analyst targets reflect confidence in a sustained recovery or signal caution by checking the consensus price target analysis for Longfor Group Holdings.

Stay Ahead Of Your Next Move

If Longfor Group Holdings' mix of a recent profit return and low P/S ratio has your attention, register for free with Simply Wall St and add it to a Watchlist so you can track the share price against fair value and wait for an entry point that fits your plan. Once you own any stock, use the Portfolio Command Center to cut through noise and focus on the updates that matter for your holdings. For long term decisions, compare your view with thousands of other investors inside the Community. That way you can spot potential catalysts and risks earlier and keep a step ahead of the market.

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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.

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