Market cap of proposed PM spin-off could account for 1/3 of Longfor market cap.

■ Longfor announced after market last Friday that it plans to spin off its property management (PM) unit at the Hong Kong Stock Exchange.
■ We estimate unit’s potential market cap of US$10bn, based on 26x FY22 P/E. The unit will be maintained as Longfor’s subsidiary after IPO.
■ Reiterate top-pick on Longfor on this positive news. Longfor is also expected to be a key beneficiary from rapid consolidation of property market ahead.