Longfor’s FY21 results were impressive with core net profit rising 20%, 9% above our estimate, on fast topline growth and rising contribution from JVs. We believe Longfor is a key beneficiary of rapid consolidation in the property market due to its solid balance sheet and strong execution capability. Despite the challenging market, Longfor still aims to increase sales this year. Meanwhile, it guides for double-digit net profit growth p.a. in years ahead. Its proposed spin-off of the PM unit should help unlock its huge value. We reiterate our Add rating. It is our high conviction stock.