Longfor Properties 0960

[winston]

not vested

DJ MARKET TALK: Citi Eyes Compelling Valuations For Longfor

1033 [Dow Jones] STOCK CALL: Citi tweaks its Longfor Properties (0960.HK) target price to HK$14.76 from HK$14.58, and keeps the stock at Buy.

It says Longfor's "proactive and aggressive" land acquisitions year-to-date have significantly strengthened its likely sales growth momentum in 2013/14 and made good progress in its strategic moves on wider city exposure and product diversity.

It adds the strengthened balance sheet after its HK$3.09 billion share placement brings financial flexibility for more value-accretive acquisitions.

The house also notes that recently, Wharf chairman Woo disclosed he bought a stake of over 5% in Longfor from the market; it says Longfor now trades at a 36% NAV discount and 8.1X FY13 P/E, "compelling among key developers."


Source: Dow Jones & Company, Inc.

[winston]

not vested

Longfor Properties: Will Ex-Husband Of Chairwoman Wu Sell More Shares?

By Shuli Ren

Longfor Properties (960.Hong Kong), one of the best managed property developers in China, tumbled 6.7% after the billionaire ex-husband of chairwoman Wu Yajun decided to sell 150 million shares worth $232 million.

Through his family office Junson Capital, Cai Kui, the ex-husband, offers to sell Longfor shares at 12 Hong Kong dollars apiece, representing 7% discount to yesterday’s close. The sale accounts for 2.6% of the company’s shares outstanding.

Cai still owns 26.5% stake in Longfor, while chairwoman Wu owns 44%. Wu paid about 28% of Longfor’s shares to her ex-husband when they divorced in 2012.

So investors want to know why Cai reduced the stake and if he will reduce further.

At this morning’s conference call, Cai said he was selling the shares for his personal investment and has no plans to reduce his stake further in the short-term.

This sale is actually good for Longfor’s shares, according to Morgan Stanley, because it will increase the liquidity of this stock. Wu is already holding 44% stake and can increase her stake at a maximum 2% per year.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... re-shares/