Group 1 - The "Second Financing Lease Asset Securitization High-Quality Development Conference" was successfully held in Shanghai, focusing on high-quality development in financing lease asset securitization [1] - Far East Horizon, a leading financing lease service provider, participated in the conference and launched innovative products aimed at supporting the high-quality development of the real economy [1] - The company signed cooperation agreements with Bank of China and Sumitomo Mitsui Banking Corporation, laying a solid foundation for future collaboration [1] Group 2 - Far East Horizon Leasing won multiple awards at the conference, including the "2024 Best Financing Lease Industry Asset-Backed Notes (ABN/ABCP) Originator Award" and the "Annual Best Inclusive Leasing Capital Market Innovation Financing Award" [3] - These awards recognize the company's continuous exploration and innovation in the capital market, as well as its support for the development of small and medium-sized enterprises [3] Group 3 - The "Jinquan Award" is the first authoritative official award in the national financing (financial) leasing industry, aimed at discovering and sharing best practices in credit financing and direct financing [4] - Far East Horizon, registered in Hong Kong, operates across financial and industrial sectors, with a mission to gather global resources to support industrial development [4] - The company has an asset scale exceeding 300 billion, approximately 20,000 employees, and has provided comprehensive financial services to over 20,000 enterprise clients, with cumulative funding exceeding 1 trillion to the real economy [4]

Group 1 - The core point of the article is that Far East Horizon (03360) announced a strategic acquisition of an 80% stake in TH Tong Heng Machinery Sdn. Bhd. for approximately 176 million MYR (around 299 million RMB) to enhance its market position in Southeast Asia [1][2] - The acquisition will allow Far East Horizon to integrate a mature sales and distribution network in Malaysia, expanding its overseas asset base and customer reach [2] - The transaction is expected to create synergies with the existing operations in Malaysia, enhancing the overall product supply and distribution capabilities of the company [2][3] Group 2 - The buyer, Horizon Construction Development Investment (HongKong) Limited, has entered into a share subscription agreement with the sellers, Chan Heng Choy and How Mee Cheng, to acquire the shares [1] - A shareholder agreement was also established, granting the buyer options to purchase the remaining 20% equity from Chan Heng Choy [2] - The board believes that this transaction will enhance the operational advantages of the group and align with the overall interests of the company and its shareholders [3]

Core Viewpoint - The company, Hongxin Jianda, has entered into a cooperation framework agreement with Far East Hongxin, which will involve engineering technical services and equipment leasing from May 8, 2025, to December 31, 2027 [1] Group 1: Agreement Details - The agreement stipulates that Hongxin Jianda will provide engineering technical services and equipment leasing to related parties of Far East Hongxin [1] - In return, related parties of Far East Hongxin will provide consulting services to Hongxin Jianda [1] Group 2: Financial Implications - The maximum fees for engineering technical services and equipment leasing to be charged by Hongxin Jianda will not exceed 141 million yuan [1] - The consulting fees to be paid by Hongxin Jianda will not exceed 25 million yuan [1] Group 3: Regulatory Compliance - The transactions under the agreement are classified as continuing connected transactions under Listing Rule Chapter 14A [1] - Since the proposed annual cap exceeds 0.1% but is below 5%, the company is required to comply with the reporting, announcement, and annual review requirements, but is exempt from independent shareholder approval [1]

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]