Equity Analysis /
Hong Kong

HK : Longfor Group - Management: No default on commercial bills

    Raymond Cheng
    Raymond Cheng

    Head of Hong Kong Research

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    Steven MAK
    Will Chu
    CGS-CIMB
    10 August 2022
    Published byCGS-CIMB

    Management stressed Longfor had not defaulted on any commercial bills. The outstanding balance of Rmb700m will be repaid by year-end, it said. SHCPE also confirmed that Longfor had not defaulted on its commercial bills and warned that spreading disinformation causes market instability. Management’s indication of early repayment of debts due in 2023 in 4Q22 suggests Longfor’s strong financial position and cash flow, in our view. We believe its sharp share price correction today is unjustified. Reiterate Add call and TP of HK$49.5. It is our sector top pick.