Citic Liang: Raises Target Price of Longrich to HK$34.1, Maintains "Hold" Rating

Citic Liang released a research report, raising the target price of Longrich (01113) from HK$31.3 to HK$34.1 and maintaining its "hold" rating. The firm will extend its valuation to 2026 and narrow the necessary yield spread by 1 percentage point to 1%, reflecting higher expectations for interest rate cuts and a weakening impact on Hong Kong residential property.

The report indicates that in the first half of 2025, the group's core profit rose 1.2% year-on-year, while mid-period dividend per share remained unchanged, meeting expectations. Although rental income decreased, the stable growth of bar operations and foundation construction projects maintained the resilience of recurring revenue. The firm believes that from 2026 onwards, the drag on profits from Hong Kong residential property will weaken as major projects are launched by the end of 2025 and sufficient provisions are made.