Elevator Pitch
I like Hong Kong-listed Mainland China property developer Longfor Group Holdings Limited (LGFRY) (LNGPF) [960:HK] for its strong contracted sales and earnings growth, growing revenue contribution from recurring income businesses and relatively low funding cost comparable to state-owned property developers.
But the positives have been priced in, with Longfor Group trading at 10.2 times consensus forward FY2019 P/E, which represents a significant premium to its historical five-year forward P/E of approximately 7 times. Most Mainland China property developers also trade at much lower mid single-digit P/E multiples. Longfor also