Investment Rating - The report maintains a "Recommended" investment rating for the company [3][8]. Core Views - The company has announced an interim cash dividend of HKD 0.25 per share, with a payout ratio of approximately 47%, reflecting a commitment to shareholder returns [4][8]. - The company is recognized as a leading independent financing leasing group in China, with strong asset quality and stable interest margins, expected to maintain its industry-leading position and steady performance [8]. - The report highlights a decline in revenue and net profit for the first half of 2024, with operating income at CNY 18.036 billion (down 1.8% YoY) and net profit at CNY 2.085 billion (down 32.1% YoY) [4][5]. Financial Performance Summary - For the first half of 2024, the company reported total assets of CNY 361.6 billion (up 2.9% from the beginning of the year) and net assets of CNY 48.2 billion (down 3.8% from the beginning of the year) [4]. - The financial segment generated revenue of CNY 10.9 billion (down 6% YoY), while the industrial segment achieved revenue of CNY 7.2 billion (up 5% YoY) [4][5]. - The company’s annualized ROE for the first half of 2024 was 8.5%, down 4.8 percentage points YoY [5]. Business Segment Analysis - The equipment operation segment reported revenue of CNY 4.87 billion (up 16% YoY), while the hospital operation segment generated revenue of CNY 2.13 billion (adjusted for base effects, up 0.34% YoY) [7]. - The company’s asset quality remains stable, with a non-performing loan ratio of 1.04% and a coverage ratio of 227% as of the end of the first half of 2024 [7]. Future Outlook - The report projects a downward revision of the company's net profit expectations for 2024-2026, with forecasts of CNY 5.684 billion, CNY 6.095 billion, and CNY 6.574 billion respectively [8]. - The company’s current stock price corresponds to a 2024 PB ratio of approximately 0.4 times, indicating potential value for investors [8].
远东宏信：中期分红提升回报，股份回购彰显信心