Longfor Properties' stock advanced 4.6% to close at HK$8.58 on Thursday after the company disclosed contracted sales of approximately RMB 13.67 billion for the first five months of 2026. May contributed about RMB 3.32 billion to that total, offering a sign that buyer interest in the developer's residential and commercial projects may be picking up following a prolonged downturn in China's property sector.
Investors reacted to the sales update amid other supportive signals from the broker community. Morgan Stanley raised its price target on Longfor while keeping an Equalweight rating, pointing to indications of a broader market recovery. Market participants also noted that Longfor currently carries a unanimous Buy consensus among analysts covering the stock - 15 analysts recommend the shares and none advise selling.
The consensus 12-month price target for Longfor stands at HKD 11.67. That average target implies a meaningful upside from the current trading level and has provided a valuation reference point that appears to have encouraged renewed buying. Traders also observed that the stock's 52-week low of HKD 7.39 signaled previously deep discounts, making the recent sales figures a potentially meaningful catalyst for re-pricing.
Thursday's gains for Longfor came in a weak broader market. The Hang Seng Index slipped more than 1%, pressured by declines in heavyweight technology names. Market sentiment remained cautious, with geopolitical tensions in the Middle East and questions about the pace of China's economic recovery weighing on local investor appetite. Observers also pointed to a middling inflation read released earlier in the week as an additional factor tempering confidence.
While the sales disclosure and analyst support were clear drivers behind the stock's move, the surrounding market context highlights ongoing uncertainties. The increase in contracted sales for the first five months of 2026, and May in particular, was interpreted by investors as an early sign of stabilization in buyer demand for Longfor's projects. However, broader macro and geopolitical forces continued to influence overall market performance during the session.
Data points reiterated in this report:
- Share price gain: 4.6% to HK$8.58 on Thursday.
- Contracted sales: approximately RMB 13.67 billion for January-May 2026; May contributed around RMB 3.32 billion.
- Analyst coverage: unanimous Buy from 15 analysts; average 12-month price target HKD 11.67.
- 52-week low: HKD 7.39.
- Broader market context: Hang Seng Index fell over 1% amid technology stock weakness, Middle East tensions, and a middling inflation print earlier in the week.