Investment Rating - The report maintains an "Accumulate" rating for the company [3][5]. Core Insights - The company's revenue for the first half of 2024 decreased by 1.77% year-on-year, primarily due to pressure on financial services, while contributions from industrial operations continued to improve [3][5]. - The net profit attributable to shareholders fell by 32.10% year-on-year, but the company demonstrated operational resilience by implementing a mid-term dividend for the first time, amounting to HKD 0.25 per share, with a cash dividend payout ratio of 47% [3][5]. - The report projects a target price of HKD 11.96, corresponding to a P/E ratio of 9.04x for 2024 [5]. Financial Performance Summary - The company achieved a revenue of RMB 18.04 billion in the first half of 2024, down from RMB 18.61 billion in the same period of 2023, reflecting a decline of 1.77% [8]. - Financial services revenue, which includes interest income, decreased by 3.47% year-on-year, contributing to the overall revenue decline [8]. - Industrial operations revenue increased to RMB 7.24 billion, showing a year-on-year growth of 5.14% [8]. - The net interest margin (NIM) improved to 4.47%, up by 0.05 percentage points year-on-year, indicating a stable financial performance despite the challenges [5][8]. - The company reported a non-performing asset ratio of 1.04%, which remained stable compared to the previous year [8]. Business Segment Analysis - The financial segment's net interest-earning assets totaled RMB 266.85 billion, a decrease of 1.01% from the end of the previous year, reflecting a more prudent strategy [5][8]. - The industrial operations segment's revenue contribution increased from 37.52% to 40.16%, effectively offsetting the impact of the financial services decline [5][8]. - The company continues to expand its market presence, with a focus on both domestic and international markets, including Southeast Asia and the Middle East [5][8].
远东宏信2024年半年报点评：盈利承压，首次实施中期派息彰显经营韧性