The analyst rating from UBS for Longfor Group (00960.HK) is maintained at "Neutral" due to significant margin pressure in the property development business, leading to a projected core net loss of RMB1.5-2 billion for 2025, which is much higher than their previous expectation of a core loss of RMB450 million. UBS anticipates that the ongoing losses from the property development sector, estimated at RMB7-7.5 billion annually for 2025-2026, will negatively impact the company's net asset value unless there is a reduction in losses or a strategic move to spin off shopping malls into CREITs for higher valuation. The target price set by UBS is $10.2.
