Financial Performance - The company achieved total revenue of RMB 37.75 billion in 2024, a slight decrease of 0.55% compared to RMB 37.96 billion in 2023[29]. - The net profit attributable to ordinary shareholders for 2024 was RMB 3.86 billion, down 37.56% from RMB 6.19 billion in 2023[29]. - The average return on equity for 2024 was 7.80%, a decrease from 12.99% in 2023[31]. - The company distributed cash dividends totaling RMB 19.20 billion in the first half of 2024, representing 31.00% of the net profit for the previous year[25]. - The company plans to distribute a final cash dividend of approximately RMB 12 billion in the first half of 2025, which would account for 55.75% of the net profit for 2024[25]. - The company's diluted earnings per share for 2024 was RMB 0.84, compared to RMB 1.33 in 2023[31]. - The consolidated revenue for 2024 was RMB 37.75 billion, a slight decline of 0.55% compared to the previous year, with traditional financial services down by 8.47%[60]. - The overall profit before provisions decreased by 12.62% to RMB 9.28 billion, while the pre-tax profit fell by 23.06% to RMB 8.02 billion[62]. - The effective tax rate increased from 33.7% in 2023 to 43.7% in 2024, primarily due to increased cross-border tax obligations[66]. - The group reported a significant increase in the income from structured financial products, which rose by 277.86% to RMB 41,081 thousand in 2024[106]. Asset Management - As of the end of 2024, the company's net interest-earning assets amounted to RMB 260.641 billion, with a stable asset deployment flow compared to the previous year[21]. - The total assets of the company reached RMB 360.39 billion, reflecting a growth of 2.53% from the previous year[23]. - The company’s total assets reached RMB 360.39 billion by the end of 2024, an increase of 2.58% from RMB 351.48 billion in 2023[32]. - The company’s equity attributable to ordinary shareholders was RMB 48.99 billion, down from RMB 50.10 billion in 2023[32]. - The total amount of non-performing assets was RMB 2,790,120 thousand as of December 31, 2024, showing stability in asset performance[161]. - The company has maintained a rigorous asset classification policy, ensuring effective risk control and management[162]. - The total amount of attention assets is RMB 14,553.198 million, a decrease from RMB 16,066.847 million at the end of 2023[169]. - The company has restructured its asset management organization to enhance decision-making efficiency and risk management capabilities[157]. Non-Performing Assets - The non-performing asset ratio stood at 1.07%, while the proportion of overdue interest-earning assets over 30 days decreased to 0.90%[21]. - The non-performing asset ratio improved to 1.07% in 2024, compared to 1.04% in 2023[32]. - The provision coverage ratio remained stable at 227.78%, slightly up from 227.59% in 2023[32]. - The total amount of non-performing assets at year-end is RMB 2,790,120 thousand, compared to RMB 2,792,206 thousand in 2023[187]. - The company recovered RMB 2,012,188 thousand in non-performing assets during the year, compared to RMB 1,355,168 thousand in 2023[187]. - The credit cost ratio for the year is 0.30%, an increase from 0.13% in 2023, reflecting a more cautious approach to provisioning[191]. Sustainable Finance and ESG - The company successfully issued the first AAA-rated asset-backed securities for small and micro equipment leasing in China, enhancing its sustainable finance initiatives[19]. - The company has been recognized in the top tier of global sustainability assessments by S&P Global for 2024[19]. - The company has committed to science-based carbon targets, becoming the first financial institution in mainland China to do so[54]. - The company plans to enhance its sustainable finance management system and has upgraded its green financing framework to a sustainable financing framework[54]. - The company is focusing on integrating ESG factors into its management and operations, continuously optimizing governance and climate risk management[54]. Operational Efficiency - The company has established a comprehensive customer service network across major cities in China, enhancing its operational capabilities[14]. - The company has expanded its service network to 528 service points in China and 53 overseas, covering markets in Southeast Asia and the Middle East[22]. - The company is actively seeking new industry clients in mining, shipbuilding, and petrochemicals to diversify its product offerings[56]. - The company is actively expanding its high-quality education layout domestically and internationally, enhancing the quality of its educational offerings[84]. Market Trends and Projections - In 2024, the national industrial added value is expected to grow by 5.8% year-on-year[44]. - Domestic tourism is anticipated to reach 5.615 billion trips in 2024, an increase of 14.8% year-on-year, with total spending of RMB 5.75 trillion, up 17.1%[45]. - The automotive sales in China are expected to reach 31.436 million units in 2024, a year-on-year increase of 4.5%[45]. - The company plans to focus on expanding its presence in the healthcare and urban utilities sectors, which have shown significant growth potential[178].

Investment Rating - The report assigns a "Buy" rating for Far East Horizon (3360.HK) with a target price of HKD 7.4, indicating a potential upside from the current price of HKD 6.43 [4]. Core Insights - Far East Horizon is a comprehensive group straddling financial and industrial sectors, backed by state-owned enterprises, with a stable shareholding structure and experienced management [1][12]. - The company has diversified its operations from leasing to a comprehensive service provider, with main business segments including financial and consulting services, equipment operation, and hospital operation, contributing 57.5%, 30.68%, and 10.84% to revenue in 2024, respectively [1][13]. - The company has maintained a stable dividend payout ratio of around 30% since its listing in 2011, with a notable increase to 56.2% in 2024, and a dividend yield of 9.7%, surpassing the industry average of 6.2% [3][4]. Summary by Sections Company Overview - Far East Horizon operates as an independent business leasing company and is the largest in China, serving over 30,000 clients with a cumulative funding scale of approximately CNY 1 trillion [13]. - The company has a stable shareholding structure with major shareholders including Sinochem Capital Investment Management (21.29%) and others, ensuring strategic consistency [1][12]. Financial Performance - In 2024, the company reported total assets of CNY 360.39 billion and equity of CNY 48.99 billion, with a slight increase in total assets by 2.5% year-on-year [14]. - Revenue from financial and consulting services decreased by 7.1% to CNY 217.06 billion, while equipment operation revenue increased by 20.5% to CNY 115.81 billion [24]. - The overall operating income for 2024 was CNY 400.41 billion, reflecting a decline of 1.43% compared to the previous year [30]. Business Segments - The financial and consulting services segment remains the largest revenue contributor, although its share has decreased, while the equipment operation segment has shown significant growth [24]. - The hospital operation segment reported a revenue of CNY 40.93 billion, a decrease of 3.4% year-on-year, but with a gross profit increase of 7.5% to CNY 8.09 billion [3][14]. Future Projections - Revenue projections for 2025 to 2027 are CNY 385.4 billion, CNY 398.2 billion, and CNY 417.9 billion, with expected growth rates of 2.1%, 3.3%, and 5.0%, respectively [3]. - The company anticipates achieving net profits of CNY 40.1 billion, CNY 42.3 billion, and CNY 44.8 billion over the same period, with corresponding EPS of CNY 0.87, CNY 0.92, and CNY 0.97 [3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's total revenue for 2024 is projected at 37.749 billion RMB, a slight decrease of 0.55% year-on-year, while the net profit attributable to shareholders is expected to be 3.862 billion RMB, reflecting a significant decline of 37.63% year-on-year [8] - The financial services segment experienced a revenue decline of 7% to 21.7 billion RMB, primarily due to a reduction in interest income from interest-earning assets [8] - The industrial operations segment showed strong growth, with revenue increasing by 10% to 16.2 billion RMB, significantly contributing to the company's overall performance [8] - The company continues to enhance shareholder returns, proposing a total cash dividend of 0.55 HKD per share for 2024, a 10% increase from 2023 [8] - The report projects net profits for 2025 and 2026 to be 4.889 billion RMB and 5.432 billion RMB, respectively, with corresponding growth rates of 26.57% and 11.11% [8] Summary by Sections Financial Performance - Total revenue for 2023 was 37.96 billion RMB, with a projected decline to 37.749 billion RMB in 2024 [1] - Net profit for 2023 was 6.193 billion RMB, expected to drop to 3.862 billion RMB in 2024 [1] - The average ROE for 2024 is estimated at 7.80%, down by 5.19 percentage points year-on-year [8] Business Segments - Financial services revenue decreased by 7% to 21.7 billion RMB, with interest income down by 6% to 21.2 billion RMB [8] - Industrial operations revenue increased by 10% to 16.2 billion RMB, with equipment operations revenue rising by 21% to 11.6 billion RMB [8] - The healthcare segment saw a slight decline in revenue, down 3% to 4.1 billion RMB [8] Dividend Policy - The company plans to distribute a total cash dividend of 0.55 HKD per share for 2024, which includes a final dividend of 0.30 HKD and an interim dividend of 0.25 HKD [8] Earnings Forecast - The report revises the earnings forecast, projecting net profits of 4.889 billion RMB for 2025 and 5.432 billion RMB for 2026, with growth rates of 26.57% and 11.11% respectively [8] - The estimated P/E ratios for 2025, 2026, and 2027 are 4.94, 4.45, and 4.06, respectively [8]

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company achieved total revenue of 37.7 billion HKD in 2024, remaining stable year-on-year, while net profit attributable to ordinary shareholders decreased by 38% to 3.9 billion HKD [1][4] - The average ROE for 2024 was 7.8%, down by 5.2 percentage points year-on-year, with a cash dividend per share of 0.55 HKD, reflecting a stable growth in dividends and a cash dividend payout ratio of 56% [1][3] - The total assets at the end of 2024 grew by 3% to 360.4 billion HKD, with loans and receivables declining by 4% to 260.6 billion HKD, indicating stable asset quality [1][3] Financial Performance Summary - The company’s interest-earning asset yield in 2024 was 8.06%, down by 18 basis points, while the cost of interest-bearing liabilities decreased to 4.06%, down by 20 basis points [2] - The net interest margin for 2024 was 4.48%, a decrease of 10 basis points year-on-year [2] - The revenue from the industrial operations segment grew by 10% to 16.2 billion HKD, with a slight decrease in gross margin to 30% [2][3] - The non-performing loan ratio at the end of 2024 was 1.07%, up by 0.03 percentage points from the beginning of the year, while the coverage ratio remained stable at 228% [3] Earnings Forecast and Financial Indicators - The forecast for net profit attributable to ordinary shareholders for 2025-2027 is 4.2 billion HKD, 4.4 billion HKD, and 4.6 billion HKD respectively, with expected growth rates of 10%, 4%, and 4% [3][4] - The diluted EPS for the same period is projected to be 0.98 HKD, 1.02 HKD, and 1.06 HKD, with corresponding PE ratios of 5.8x, 5.6x, and 5.4x [3][4] - The dynamic dividend yield is approximately 10%, indicating a strong return for shareholders [3]

Investment Rating - The report assigns a "Buy" rating for the company for the first time [1]. Core Insights - The company operates as a comprehensive group spanning finance and industry, focusing on both traditional financial services and industrial operations, with a strong emphasis on asset quality and management [4][17]. - The financial services segment has shown a consistent improvement in net interest margin, increasing from 1.22% in 2015 to 3.99% in 2024, despite a slowdown in asset growth [4]. - The company has expanded its overseas operations significantly, establishing 53 overseas outlets in seven markets by the end of 2024, which is expected to enhance profitability [4]. Summary by Sections Company Overview - The company is the largest independent financing leasing financial service group in China, with total assets exceeding 360 billion yuan and serving over 30,000 clients [17]. - It has transitioned from a focus on financial services to a more integrated model that includes industrial operations [19]. Business Segmentation - The financial services segment is centered on financing leasing, with a focus on nine key industries to solidify asset quality [4]. - The industrial operations segment, particularly through its subsidiary Hongxin Jianda, has seen significant growth in equipment management and overseas expansion [4]. Competitive Advantages - The company leads the financing leasing industry with a strong asset scale and excellent management of asset-liability duration [4]. - It has diversified funding sources and has improved its asset-liability matching, which enhances financial stability [4]. Financial Performance and Investment Recommendations - The company has maintained steady revenue growth, with projected net profit growth of 2.5% in 2025, 3.4% in 2026, and 2.1% in 2027, reaching approximately 4.18 billion yuan by 2027 [4]. - The dividend payout ratio is expected to remain robust, with a projected dividend yield of 9.1% to 9.6% over the next three years, reflecting strong shareholder returns [4].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 6.40 [6][11]. Core Insights - The company's net profit for 2024 is projected to be RMB 3.86 billion, a decrease of 38% year-on-year, which is below the expected RMB 4.76 billion. This decline is attributed to non-operating factors such as physical dividends and increased tax rates [1][2]. - The company has demonstrated resilience in its interest margin, with a net interest margin slightly decreasing to 4.48% in 2024 from 4.58% in 2023. The average balance of interest-earning assets is RMB 262.9 billion, down 3.7% year-on-year [3]. - The dividend payout ratio for the year reached 56%, exceeding expectations and highlighting the company's high dividend characteristics [1][5]. Financial Performance - The company's revenue and other income for 2024 is estimated at RMB 39.5 billion, a slight decrease of 0.4% compared to 2023 [16]. - The net profit attributable to the parent company for 2025 is projected to recover to RMB 4.73 billion, representing a year-on-year increase of 22.5% [5][16]. - The company plans to extend the investment period for high-quality old clients, which is expected to support asset growth and improve profitability [3]. Business Segments - In the financial business segment, the average balance of interest-earning assets and interest-bearing liabilities is RMB 262.9 billion and RMB 231.3 billion, respectively, with a slight decline in both [3]. - The industrial operation segment shows a significant increase in capital expenditure for Hongxin Jianfa, rising to RMB 7.1 billion, which is a 250% increase year-on-year, aimed at supporting domestic and overseas business development [4]. - Hongxin Health reported a revenue of RMB 4.1 billion, a decrease of 3% year-on-year, but net profit improved by 35% to RMB 230 million due to ongoing cost optimization [4]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio for 2024 is projected at 6.34, while the price-to-book (P/B) ratio is expected to be 0.47 [16]. - The return on equity (ROE) is forecasted to improve to 9.42% in 2025 from 7.80% in 2024 [16]. - The dividend yield is expected to increase to 11.70% in 2025 and 13.05% in 2026, reflecting the company's commitment to returning value to shareholders [16].

Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company has demonstrated prudent and stable operations, with continuous improvement in dividend payouts [1] - The financial segment faced pressure, while the industrial segment showed steady growth [9] - The company is expected to maintain a high dividend payout ratio, with a proposed cash dividend of HKD 0.30 per share, leading to an overall dividend of HKD 0.55 per share, representing a year-on-year increase of 10% [9] Financial Performance Summary - For the fiscal year 2024, the company reported total revenue of CNY 377.49 billion, a year-on-year decrease of 0.6%, and a net profit of CNY 38.62 billion, down 37.6% year-on-year [4] - Total assets reached CNY 3,604 billion, reflecting a year-on-year increase of 2.5%, while net assets decreased by 2.2% to CNY 490 billion [4] - The earnings per share (EPS) for the year was CNY 0.89, with a book value per share (BVPS) of CNY 11.34 [4] Revenue Breakdown - The financial segment generated revenue of CNY 217 billion, down 7% year-on-year, while the industrial segment achieved revenue of CNY 162 billion, up 10% year-on-year [9] - Interest income within the financial segment was CNY 212 billion, a decrease of 6% year-on-year, while consulting fees dropped significantly by 42% to CNY 5 billion [9] Profitability Metrics - The company's net profit margin for 2024 is projected at 10.2%, with a return on equity (ROE) of 7.8% [13] - The net interest margin is expected to be 4.48%, with a slight year-on-year decrease of 10 basis points [9] Future Projections - Revenue forecasts for 2025 are set at CNY 39.38 billion, with a projected year-on-year growth of 4.3% [5] - The net profit for 2025 is estimated at CNY 4.204 billion, reflecting an 8.8% increase from the previous year [5] Dividend Policy - The company has increased its dividend payout ratio to over 50%, with a total dividend payment expected to reach approximately 88% when including the distribution of shares [9]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company experienced a significant decline in net profit for 2024, with a decrease of 37.6% year-on-year, primarily due to changes in the fair value of non-operating financial assets and a one-time impact from cross-border income tax [8] - The financial services segment saw a slight revenue decline of 7% to 21.7 billion, while the industrial operations segment achieved a revenue increase of 10% to 16.2 billion, indicating a shift in revenue sources [8] - The company continues to enhance shareholder returns, proposing a total cash dividend of 0.55 HKD per share for 2024, a 10% increase from 2023 [8] - The report projects a recovery in net profit for 2025 and 2026, with expected growth rates of 26.57% and 11.11%, respectively [8] Summary by Sections Financial Performance - Total revenue for 2024 is reported at 37.749 billion, a slight decrease of 0.55% year-on-year [8] - The net profit attributable to shareholders for 2024 is 3.862 billion, down from 6.193 billion in 2023 [8] - The average return on equity (ROE) for 2024 is projected at 7.80%, a decrease of 5.19 percentage points year-on-year [8] Business Segments - Financial services revenue decreased by 7% to 21.7 billion, with interest income down 6% to 21.2 billion [8] - The industrial operations segment's revenue increased by 10% to 16.2 billion, with equipment operations revenue rising by 21% to 11.6 billion [8] - The company’s asset quality remains stable, with a non-performing asset ratio of 1.07% [8] Dividend Policy - The company plans to distribute a total cash dividend of 0.55 HKD per share for 2024, reflecting a commitment to increasing shareholder returns [8] Earnings Forecast - The report revises the earnings forecast, projecting net profits of 4.889 billion for 2025 and 5.432 billion for 2026, with corresponding growth rates of 26.57% and 11.11% [8]

Investment Rating - The investment rating for the company is "Buy" [5][18]. Core Insights - The company reported a slight decrease in revenue for 2024, with total revenue of 37.75 billion, down 0.55% year-on-year, while net profit attributable to shareholders fell significantly by 37.6% to 3.86 billion [3][4]. - The company initiated its first interim dividend in 2024, distributing a total of 1.953 billion, which represents over 55% of the net profit for the year [3]. - The company has adjusted its earnings forecasts for 2025-2026 and introduced a new forecast for 2027, maintaining a "Buy" rating based on expected growth in financing leasing and industrial operations [9]. Financial Data and Profit Forecast - Revenue and profit forecasts for the company are as follows: - 2023: Revenue 37.96 billion, Net Profit 6.19 billion - 2024: Revenue 37.75 billion, Net Profit 3.86 billion - 2025E: Revenue 40.91 billion, Net Profit 4.26 billion - 2026E: Revenue 44.33 billion, Net Profit 4.77 billion - 2027E: Revenue 47.65 billion, Net Profit 5.48 billion [4][10]. - The company’s return on equity (ROE) for 2024 was 7.80%, down 5.2 percentage points year-on-year [3]. Business Segments Performance - The financing leasing segment generated interest income of 21.18 billion in 2024, accounting for 56% of total revenue, while the industrial operations segment contributed 16.18 billion, representing 42.7% of total revenue [9]. - The company’s equipment operation segment has a strong market position, ranking among the top three globally, with significant international expansion efforts yielding a 27-fold increase in overseas revenue [9]. - The hospital operation segment improved its net profit to 0.232 billion, a 34.6% increase year-on-year, with a gross margin recovery to 19.97% [9]. Valuation and Target Price - The target price for the company is set at 7.80 per share, indicating a potential upside of 37% from the current closing price of 6.18 [9]. - The average price-to-book (PB) ratio for comparable companies is 0.65, which has been used to derive the target price [9].

Financial Performance - The total revenue for the year reached RMB 37.749 billion, maintaining stability compared to the previous year, with a net profit attributable to ordinary shareholders of RMB 3.862 billion[21]. - The company's net profit attributable to ordinary shareholders was RMB 3,862,461, down 37.6% from RMB 6,192,972 in the previous year[23]. - Basic earnings per share decreased to RMB 0.92 from RMB 1.47, representing a decline of 37.4%[23]. - The average return on equity for the year was 7.80%, with a diluted earnings per share of RMB 0.92[21]. - The consolidated revenue for 2024 was RMB 37.749 billion, reflecting a slight decline of 0.55%, with traditional financial services down 8.47%[52]. - The company's ordinary shareholders' share of net profit decreased by 37.63% to RMB 3,862,461 thousand, impacted by the dilution effect from the distribution of shares[57]. - The pre-provision profit for 2024 was RMB 9,275,587 thousand, a decrease of 12.62% compared to the previous year[106]. - The effective tax rate increased from 33.7% in 2023 to 43.7% in 2024 due to higher cross-border tax obligations[58]. Asset Quality and Management - The company has maintained stable asset quality and flow in its financial services business[11]. - The non-performing asset ratio was 1.07%, slightly up from 1.04% in the previous year[24]. - The provision coverage ratio for non-performing assets was 227.78%, indicating a stable coverage level compared to 227.59% in 2023[24]. - The total amount of non-performing assets is RMB 2,790,120 thousand, showing stability compared to RMB 2,792,206 thousand in the previous year[153]. - The group has observed a stable asset quality overall, with a low level of deterioration in concern assets due to careful monitoring and management[163]. - The group’s credit cost rate for 2024 was 0.30%, up from 0.13% in 2023, primarily due to increased provisions in the inclusive finance business[183]. - The coverage ratio for provisions against non-performing assets was 227.78% in 2024, indicating a stable asset quality management strategy[183]. Dividends and Shareholder Returns - The company's annual cash dividend increased to HKD 0.55 per share, with a cash dividend payout ratio exceeding 55%[11]. - The company completed its first interim dividend distribution since its listing, marking a significant return to shareholders[11]. - The company distributed cash dividends of RMB 19.20 billion in the first half of 2024, accounting for 31.00% of the net profit attributable to ordinary shareholders for the previous year[18]. Business Segments and Revenue Sources - The revenue from industrial operation business accounted for over 40% of total income, effectively hedging against industry fluctuations[11]. - The revenue from the industrial operations segment was RMB 16.181 billion, a year-on-year increase of 9.78%, contributing 42.71% to total revenue[15]. - The financial and consulting segment contributed 57.29% of total revenue, amounting to RMB 21,705,654 thousand, which represents a 7.10% decrease from RMB 23,363,434 thousand in the previous year[60]. - The inclusive finance segment experienced a significant growth of 50.90% year-on-year, effectively countering the fluctuations in the main financial business[52]. Strategic Initiatives and Future Plans - The company aims to continue its "Finance + Industry" development strategy, focusing on innovation and adapting to environmental changes[19]. - The company has launched initiatives in technology finance, green finance, inclusive finance, pension finance, and digital finance[12]. - The company plans to adopt a prudent and stable development strategy, anticipating gradual improvement in external conditions and operational efficiency[106]. - The company aims to enhance its service offerings by integrating resources across various sectors, focusing on long-term, comprehensive services for vital clients[42]. Market and Economic Outlook - In 2024, the national general public budget revenue is projected to be RMB 21.97 trillion, a year-on-year increase of 1.3%, with tax revenue decreasing by 3.4% to RMB 17.49 trillion and non-tax revenue increasing by 25.4% to RMB 4.47 trillion[32]. - The broad money supply (M2) is expected to grow by 7.3% year-on-year in 2024, while the total social financing scale is projected to increase by 8.0% year-on-year[32]. - The national industrial added value above designated size is projected to grow by 5.8% year-on-year in 2024[36]. Awards and Recognition - The company has received multiple awards related to ESG, reflecting its commitment to sustainable development[12]. - The company has been recognized in the Fortune China 500 and Forbes Global 2000 rankings[6].