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].

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 18,036,339 thousand[8] - Net profit attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 2,085,076 thousand[8] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.49[8] - Diluted earnings per share for the six months ended June 30, 2024, was RMB 0.45[9] - Average return on assets for the six months ended June 30, 2024, was 1.30%[9] - Average return on equity for the six months ended June 30, 2024, was 8.49%[9] - Net interest margin for the six months ended June 30, 2024, was 1.30%[9] - Net interest spread for the six months ended June 30, 2024, was 8.49%[9] - Operating cost ratio for the six months ended June 30, 2024, was 3.95%[10] - Total revenue for the first half of 2024 was RMB 18,036,339 thousand, a slight decrease from RMB 18,361,807 thousand in the same period of 2023[11] - Financial services (interest income) contributed RMB 10,699,938 thousand in H1 2024, down from RMB 11,084,837 thousand in H1 2023[11] - Industrial operations revenue increased to RMB 7,244,246 thousand in H1 2024, up from RMB 6,890,244 thousand in H1 2023[11] - Pre-tax profit for H1 2024 was RMB 4,007,621 thousand, compared to RMB 4,990,390 thousand in H1 2023[11] - The net interest margin improved to 4.47% in H1 2024, up from 4.42% in H1 2023[11] - Basic earnings per share for H1 2024 were RMB 0.49, down from RMB 0.73 in H1 2023[11] - Revenue for the first half of 2024 decreased by 1.77% to RMB 18,036.34 million compared to RMB 18,361.81 million in the same period last year[28][30] - Net profit attributable to ordinary shareholders of the company dropped by 32.10% to RMB 2,085.08 million[28] - Financial and consulting segment revenue (before taxes and surcharges) decreased by 6.02% to RMB 10,862.04 million, accounting for 59.99% of total revenue[30][32] - Industrial operations segment revenue increased by 5.14% to RMB 7,244.25 million, contributing 40.01% of total revenue[31][32] - Interest income from financial services declined by 3.47% to RMB 10,699.94 million, representing 59.10% of total revenue[33] - Consulting service revenue plummeted by 65.69% to RMB 162.10 million[31] - The company's interest-bearing assets average balance decreased by 3.91% to RMB 263,959.17 million[29] - Asset provisions surged by 120.49% to RMB 644.11 million[28] - Income from joint ventures and associates plunged by 66.78% to RMB 83.40 million[28] - Tax expenses increased by 13.01% to RMB 1,696.59 million[28] - The average balance of interest-earning assets decreased by 3.91% from RMB 274,693,818 thousand in the first half of 2023 to RMB 263,959,174 thousand in the first half of 2024[36] - The average yield on interest-earning assets improved to 8.11% in the first half of 2024, up from 8.07% in the same period of 2023[37] - The average balance of interest-earning assets in the inclusive finance business increased by 22.20% from RMB 10.817 billion at the end of 2023 to RMB 13.218 billion in the first half of 2024[35] - Interest income from the East China region accounted for 40.89% of total interest income in the first half of 2024, up from 37.52% in the same period of 2023[38] - Service fee income from the financial and consulting division decreased by 65.69% from RMB 472,509 thousand in the first half of 2023 to RMB 162,101 thousand in the first half of 2024[39] - Industrial operations revenue increased by 5.14% from RMB 6,890,244 thousand in the first half of 2023 to RMB 7,244,246 thousand in the first half of 2024[40] - Equipment operations revenue within the industrial operations division increased by 15.85% from RMB 4,205,971 thousand in the first half of 2023 to RMB 4,872,421 thousand in the first half of 2024[41] - Sales costs for the financial and consulting division decreased by 4.19% from RMB 5,008,769 thousand in the first half of 2023 to RMB 4,799,138 thousand in the first half of 2024[45] - Sales costs for the industrial operations division increased by 4.38% from RMB 4,900,457 thousand in the first half of 2023 to RMB 5,115,071 thousand in the first half of 2024[45] - Total sales costs increased by 0.05% from RMB 9,909,226 thousand in the first half of 2023 to RMB 9,914,209 thousand in the first half of 2024[45] - The average cost rate of interest-bearing liabilities decreased to 4.16% in the first half of 2024, down from 4.26% in the same period of 2023, primarily due to lower domestic financing costs and bond market conditions[47][48] - The company's financial and consulting sales costs decreased by RMB 209.631 million to RMB 4,799.138 million in the first half of 2024, compared to RMB 5,008.769 million in the same period of 2023[48] - The industrial operations segment's costs increased by 4.38% to RMB 5,115.071 million in the first half of 2024, with equipment operation costs rising by 19.61% to RMB 3,313.096 million[50] - The company's gross profit decreased by 3.91% to RMB 8,122.130 million in the first half of 2024, with the gross margin dropping from 46.03% to 45.03%[51] - Net interest income decreased by 2.88% to RMB 5,900.800 million in the first half of 2024, while the net interest spread increased by 14 basis points to 3.95%[53][55] - The industrial operations segment's gross profit increased by 7.01% to RMB 2,129.175 million in the first half of 2024, with hospital operation gross profit rising by 15.43% to RMB 464.530 million[56] - The company's other income/earnings decreased by 11.55% to RMB 608.672 million in the first half of 2024, with a significant 75.48% drop in income from off-balance sheet assets[57] - The company's interest income decreased by 3.47% to RMB 10,699.938 million in the first half of 2024, while interest expenses decreased by 4.19% to RMB 4,799.138 million[53] - Sales and administrative expenses increased by RMB 9.103 million (0.26%) to RMB 3,538.985 million in the first half of 2024, driven by market expansion strategies[59] - Other expenses decreased by 11.15% to RMB 41.997 million in the first half of 2024, mainly due to reduced donation expenses[60] - Financial costs rose by 9.29% to RMB 581.489 million in the first half of 2024, primarily due to financing costs in the industrial operations segment[61] - Pre-provision profit decreased by 11.94% to RMB 4,651.728 million in the first half of 2024, with significant declines in financial and consulting segment revenues[62] - Asset provisions increased by 120.49% to RMB 644.107 million in the first half of 2024, with notable changes in interest-earning asset provisions and receivables provisions[63] - Income tax expenses increased by 13.01% to RMB 1,696.585 million in the first half of 2024, driven by higher cross-border withholding taxes[65] - Net profit attributable to ordinary shareholders decreased by 32.10% to RMB 2,085.076 million in the first half of 2024[66] - Basic earnings per share decreased by 32.88% to RMB 0.49 in the first half of 2024[67] Asset and Liability Management - Asset-liability ratio as of June 30, 2024, was 83.67%[10] - The company's total assets as of June 30, 2024, stood at RMB 361,642,055 thousand, slightly up from RMB 361,362,852 thousand at the end of 2023[12] - The asset-liability ratio was 83.67% as of June 30, 2024, down from 84.38% at the end of 2023[12] - Non-performing asset ratio remained stable at 1.04% as of June 30, 2024, compared to 1.05% at the end of 2023[13] - Provision coverage ratio was 227.21% as of June 30, 2024, down from 234.87% at the end of 2023[13] - Total assets increased by 2.89% to RMB 361,642.055 million as of June 30, 2024, while interest-earning assets decreased by 1.01%[70] - The company's total assets increased by 2.89% to RMB 361.64 billion as of June 30, 2024, compared to RMB 351.48 billion as of December 31, 2023[72] - Interest-earning assets accounted for 71.92% of the company's total assets as of June 30, 2024, with a slight decrease of 1.01% in net interest-earning assets to RMB 266.38 billion[73][74] - The company's cash and cash equivalents increased significantly by 21.71% to RMB 22.95 billion as of June 30, 2024[72] - The cultural tourism sector saw a 21.54% increase in net interest-earning assets to RMB 30.70 billion as of June 30, 2024[78] - The consumer goods sector experienced a 23.95% growth in net interest-earning assets to RMB 28.25 billion as of June 30, 2024[78] - The urban public utilities sector's net interest-earning assets decreased by 11.62% to RMB 94.69 billion as of June 30, 2024[78] - The company's financial assets measured at fair value through profit or loss increased by 85.46% to RMB 16.40 billion as of June 30, 2024[72] - The company's provision for financial assets measured at fair value through profit or loss increased by 62.72% to RMB 50.57 million as of June 30, 2024[74] - The company's inclusive finance business maintained steady growth, with net interest-earning assets increasing to RMB 13.96 billion as of June 30, 2024[79] - The company decided to no longer invest in long-term infrastructure projects and accelerated the disposal of such assets, with a balance of RMB 7.721 billion as of June 30, 2024[80] - The interest-earning assets in East China accounted for 43.34% of the total, with a balance of RMB 115.46 billion as of June 30, 2024[82] - The interest-earning assets in the city utility sector in East China accounted for 44.27% of the total, with a balance of RMB 41.92 billion as of June 30, 2024[83] - Interest-earning assets due within 1 year increased to 59.54% of the total, with a balance of RMB 158.59 billion as of June 30, 2024[85] - Interest-earning assets due within 1 year accounted for 61.07% of the total, with a balance of RMB 162.67 billion as of June 30, 2024[87] - The proportion of interest-earning assets due in 3 years and above decreased by 49.21%, with a balance of RMB 4.95 billion as of June 30, 2024[87] - Total interest-bearing assets amounted to RMB 266.38 billion as of June 30, 2024, with normal assets accounting for 93.15%[97] - The proportion of special mention assets decreased by 0.16 percentage points to 5.81% compared to the end of 2023[97] - The non-performing asset ratio remained stable at 1.04% as of June 30, 2024[97] - The urban public utilities sector accounted for 38.50% of total special mention assets, with a sector-specific ratio of 6.30%[98] - The company successfully implemented diversified disposal strategies, including collateral and pledge disposal, flexible debt transfer, and legal enforcement[94] - The company restructured its asset management organization to enhance efficiency and risk control, establishing separate departments for customer monitoring and asset disposal[92] - A new asset disposal department was established with specialized teams to maximize risk reduction and recovery[93] - The company optimized its post-lease operation system, integrating disposal strategies, decision-making, execution, data monitoring, and system optimization[93] - The company implemented a refined incentive mechanism to maximize asset disposal value and potential[95] - The company maintained a stable asset quality despite a slight decrease in total assets during the reporting period[91] - The proportion of attention assets in the cultural tourism sector is 20.09%, with the sector's attention asset ratio at 10.13%, higher than the company's overall attention asset ratio[99] - The proportion of attention assets in the engineering construction sector is 14.79%, with the sector's attention asset ratio at 6.78%, slightly higher than the company's overall attention asset ratio[99] - The proportion of attention assets in the healthcare sector is 11.39%, with the sector's attention asset ratio at 9.09%, slightly higher than the company's overall attention asset ratio[100] - The total attention assets as of June 30, 2024, amounted to RMB 15,485,788 thousand, with the healthcare sector accounting for RMB 1,763,291 thousand (11.39%) and the cultural tourism sector accounting for RMB 3,110,590 thousand (20.09%)[101] - The non-performing asset ratio as of June 30, 2024, was 1.04%, with the total non-performing assets amounting to RMB 2.774 billion[102] - The proportion of non-performing assets in the urban public utilities sector is 45.70%, with the sector's non-performing asset ratio at 1.34%[103] - The proportion of non-performing assets in the transportation and logistics sector is 18.90%, with the sector's non-performing asset ratio at 2.53%[104] - The proportion of non-performing assets in the cultural tourism sector is 10.52%, with a sector-specific non-performing asset ratio of 0.95%, showing a significant decrease compared to previous periods[105] - The mechanical manufacturing sector's non-performing assets account for 6.47% of total non-performing assets, with a sector-specific ratio of 1.14%, indicating a slight decline[105] - The healthcare sector's non-performing assets decreased to 174,641 thousand RMB, representing 6.30% of total non-performing assets, down from 11.77% in December 2023[106] - The urban utilities sector holds the largest share of non-performing assets at 45.70%, amounting to 1,267,506 thousand RMB[106] - The total non-performing assets as of June 30, 2024, were 2,773,644 thousand RMB, with a non-performing asset ratio of 1.04%, consistent with the previous period[112] - The non-performing asset generation rate for the period was 0.12%, a decrease from 0.51% in December 2023[112] - The cultural tourism sector's substandard assets decreased to 11,350 thousand RMB, representing 0.86% of total substandard assets, down from 2.61% in December 2023[107] - The urban utilities sector's substandard assets decreased to 684,838 thousand RMB, representing 51.85% of total substandard assets, down from 59.15% in December 2023[107] - The healthcare sector's doubtful assets increased to 105,073 thousand RMB, representing 7.23% of total doubtful assets, up from 4.53% in December 2023[108] - The urban utilities sector's doubtful assets increased to 582,668 thousand RMB, representing 40.11% of total doubtful assets, up from 19.09% in December 2023[108] - Non-performing asset provision ratio decreased to 26.24% as of June 30, 2024, compared to 26.49% at the end of 2023[114] - Provision coverage ratio stood at 227.21% as of June 30, 2024, slightly down from 227.59% at the end of 2023[114] - Credit cost rate remained stable at 0.13% as of June 30, 2024, consistent with the rate at the end of 2023[114] - Write-off ratio for non-performing assets was 11.85% as of June 30, 2024, significantly lower than 49.41% at the end of 2023[116] - Over 30 days delinquency rate decreased to 0.90% as of June 30, 2024, down by 0.01 percentage points from the end of 2023[119] - Urban public utilities accounted for 38.

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].