Core Viewpoint - Far East Horizon reported a decline in revenue for the first half of 2025, but a growth in net profit, indicating a mixed performance in its financial results [1][2]. Group 1: Financial Performance - In 1H25, the company achieved operating revenue of 17.336 billion yuan, a year-on-year decrease of 3.9%, while net profit attributable to shareholders was 2.164 billion yuan, an increase of 3.8% [1]. - The average return on equity for the first half of 2025 was 8.66%, up by 0.17 percentage points year-on-year [1]. Group 2: Business Segments - The financial and consulting business remains a key pillar, generating revenue of 11.090 billion yuan (up 2.1% year-on-year), while equipment operation and industrial operation revenues were 4.350 billion yuan (down 10.7%) and 1.797 billion yuan (down 15.5%), respectively [2]. - The gross margins for these segments were 57.5%, 21.6%, and 18.0%, reflecting changes of +1.7, -10.4, and -3.9 percentage points year-on-year [2]. Group 3: Asset Management - The company maintained a stable interest-earning asset scale of 266.626 billion yuan, with a quarter-on-quarter increase of 2.3% [2]. - The average yield on interest-earning assets rose to 8.08%, while the cost of interest-bearing liabilities decreased to 4.02%, leading to a net interest margin increase to 4.51% [2]. Group 4: Inclusive Finance - The inclusive finance business saw significant growth, with interest-earning assets reaching 22.192 billion yuan, a quarter-on-quarter increase of 28.7%, and revenue of 1.451 billion yuan, a year-on-year increase of 124.1% [3]. - The yield for this business segment was 14.72%, notably higher than the overall financial business yield of 8.1% [3]. Group 5: Asset Quality - The non-performing loan ratio and attention ratio were 1.05% and 5.51%, respectively, both showing a decline from the previous year [3]. - The provision coverage ratio remained stable at 227.33%, indicating good asset quality [3]. Group 6: Dividend and Future Outlook - The company has a high cash dividend payout ratio of 56% for 2024 and 50% for 1H25, with potential for stability and further increases [3]. - Projected net profits for 2025 to 2027 are 4.01 billion yuan, 4.23 billion yuan, and 4.48 billion yuan, reflecting year-on-year growth rates of 3.8%, 5.5%, and 5.9% respectively [3].

Core Viewpoint - UBS has downgraded the earnings per share forecast for Far East Horizon (03360) by 12% to 15% for the years 2025 to 2027 due to equity expansion and weakened profit contributions from its subsidiary HCD, while raising the target price from HKD 7.4 to HKD 8.8, maintaining a "Buy" rating [1] Financial Performance - Far East Horizon's net profit for the first half reached RMB 2.164 billion, a year-on-year increase of 4%, aligning with management's previous guidance for stable earnings in 2025 [1] - Operating profit decreased by 13% year-on-year, significantly impacted by the industrial business, although the core financing leasing business showed signs of recovery [1] Dividend Policy - The company announced an interim dividend of HKD 0.25 per share, unchanged from the same period last year [1] - Management has committed to a progressive dividend policy, expecting the total dividend for the fiscal year 2025 to remain at HKD 0.55 per share, consistent with the fiscal year 2024 [1]

报告指，远东宏信上半年盈利符预期，净利润达到21.64亿元人民币，同比增长4%，与管理层此前2025 年盈利大致稳定的指引相符。 尽管受到工业业务的显著拖累，营运利润同比下降13%，但核心融资租 赁业务表现出复苏迹象。 在股息政策方面，公司宣布中期每股股息为0.25港元，与去年同期持平。管理层承诺维持渐进式股息政 策，预计2025财年全年每股股息将保持在0.55港元，与2024财年一致。 智通财经APP获悉，瑞银发布研报称，由于远东宏信(03360)股本扩张及子公司HCD盈利贡献减弱的影 响，将2025至2027年的每股盈利预测下调12%至15%。 然而，受惠于市场环境的改善，目标价从7.4港 元上调至8.8港元，评级"买入"。 ...

尽管工业业务拖累导致营运利润下降13%，但核心融资租赁业务出现复苏迹象。公司宣布中期每股股息 为0.25港元，与去年同期持平，并承诺维持渐进式股息政策，预计2025财年全年每股股息为0.55港元。 由于股本扩张和子公司HCD盈利贡献减弱，瑞银下调了2025至2027年的每股盈利预测12%至15%。然 而，受惠于市场环境改善，瑞银将其目标价从7.4港元上调至8.8港元，并维持"买入"评级。 瑞银发布报告，指出远东宏信上半年盈利符合预期，净利润为21.64亿元，同比增长4%，符合管理层 2025年盈利大致稳定的指引。 ...

在股息政策方面，公司宣布中期每股股息为0.25港元，与去年同期持平。管理层承诺维持渐进式股息政 策，预计2025财年全年每股股息将保持在0.55港元，与2024财年一致。另外，由于股本扩张及子公司 HCD盈利贡献减弱的影响，该行将2025至2027年的每股盈利预测下调12%至15%。 然而，受惠于市场环境的改善，该行将其目标价从7.4港元上调至8.8港元，评级"买入"。 瑞银发表报告指，远东宏信上半年盈利符合预期，净利润达到21.64亿元，按年增长4%，与管理层此前 2025年盈利大致稳定的指引相符。尽管受到工业业务的显著拖累，营运利润按年下降13%，但核心融资 租赁业务表现出复苏迹象。 ...

Core Viewpoint - The report from CICC indicates that Far East Horizon's performance in the first half of the year meets expectations, with a revenue decline of 4% year-on-year to 17.34 billion yuan and a net profit attributable to shareholders increasing by 4% year-on-year to 2.16 billion yuan [1] Financial Performance - Revenue decreased by 4% year-on-year to 17.34 billion yuan [1] - Net profit attributable to shareholders increased by 4% year-on-year to 2.16 billion yuan [1] - Annualized return on equity (ROE) increased by 17 percentage points year-on-year to 8.66% [1] Dividend Policy - The interim dividend payout ratio increased by 4 percentage points year-on-year to 50% [1] - The dividend per share remains at 0.25 HKD, which is growing slower than the profit growth due to the dilution effect from convertible bonds [1] Market Outlook - The company's performance and dividends are considered stable in an uncertain environment, with the current dividend yield still being attractive [1] - CICC maintains an "outperform" rating for the company and raises the target price by 10% to 8.8 HKD, considering market funding preferences [1]

Core Viewpoint - CICC maintains the earnings forecast for Far East Horizon (03360) for 2025/2026 largely unchanged, with a target price increase of 10% to HKD 8.8 due to significant valuation discount and attractive dividend yield [1] Financial Performance - For 1H25, Far East Horizon reported a revenue decrease of 4% year-on-year to CNY 17.34 billion, while net profit attributable to shareholders increased by 4% to CNY 2.16 billion, achieving an annualized ROE of 8.66%, up 17 percentage points year-on-year, in line with expectations [2] - The company’s interim dividend payout ratio increased by 4 percentage points year-on-year to 50%, with a stable DPS of HKD 0.25, reflecting a slower growth in DPS compared to profit due to the dilution effect from convertible bonds [2] Financial Business - The financial business revenue for 1H25 increased by 2% year-on-year to CNY 11.09 billion, accounting for 64% of total revenue, with interest income slightly down by 0.4% to CNY 10.66 billion, while consulting fee income surged by 167% to CNY 430 million [3] - The net interest margin expanded, with net interest spread and net interest margin increasing by 11 basis points and 4 basis points year-on-year to 4.06% and 4.51%, respectively [3] - Asset quality remained stable, with non-performing loan ratio slightly decreasing by 0.02 percentage points to 1.05% and the provision coverage ratio remaining stable at 227% [3] Industrial Operations - The industrial operations segment saw a revenue decline of 13% year-on-year to CNY 6.33 billion, accounting for 37% of total revenue, with domestic business under pressure while overseas business experienced rapid growth [4] - The revenue from Hongxin Jianda decreased by 11% year-on-year to CNY 4.35 billion, with net profit down by 87% to CNY 35 million, affected by a decline in domestic market performance [4] - The healthcare segment, Hongxin Health, reported a 15% year-on-year decrease in hospital revenue to CNY 1.8 billion, with net profit down by 28% to CNY 110 million, as the company focuses on optimizing cost efficiency and expanding non-insurance business [4]

Core Viewpoint - Company maintains earnings forecasts for FY25/26 largely unchanged, with current trading at 0.67x/0.63x P/B for FY25/26, and a target price increase of 10% to HKD 8.8, reflecting a significant discount in valuation and attractive dividend yield [1] Financial Performance - For 1H25, company reported a revenue decline of 4% year-on-year to CNY 17.34 billion, while net profit attributable to shareholders increased by 4% to CNY 2.16 billion, achieving an annualized ROE of 8.66%, up 17 percentage points [2] - The dividend payout ratio increased by 4 percentage points year-on-year to 50%, with a stable DPS of HKD 0.25, indicating a slower growth in DPS compared to profit growth due to the dilution effect from convertible bonds [2] Financial Business - Financial business revenue grew by 2% year-on-year to CNY 11.09 billion, accounting for 64% of total revenue, with interest income down by 0.4% to CNY 10.66 billion and consulting fee income up by 167% to CNY 430 million [3] - The net interest margin expanded, with net interest spread and net interest margin increasing by 11 basis points and 4 basis points to 4.06% and 4.51%, respectively [3] - Asset quality remained stable, with non-performing loan ratio slightly decreasing by 0.02 percentage points to 1.05% and the provision coverage ratio remaining stable at 227% [3] Industrial Operations - Industrial operations revenue decreased by 13% year-on-year to CNY 6.33 billion, with a revenue share decline of 4 percentage points to 37% [4] - The overseas business of Hongxin Jianda experienced rapid growth, while domestic market downturn affected overall performance, with Jianda's revenue down 11% to CNY 4.35 billion and net profit down 87% to CNY 35 million [4] - The healthcare segment focused on optimizing management capabilities and cost efficiency, with hospital revenue down 15% to CNY 1.8 billion and net profit down 28% to CNY 110 million, while operational costs decreased by 11% to CNY 1.47 billion [4]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company reported a 3.9% year-on-year decline in revenue for the first half of 2025, totaling 17.336 billion yuan, while net profit attributable to shareholders increased by 3.8% to 2.164 billion yuan [1]. - The financial and consulting business remains a key revenue driver, with a revenue increase of 2.1% year-on-year, while equipment and industrial operations saw declines of 10.7% and 15.5%, respectively [1][17]. - The company has focused on the development of inclusive finance, achieving a 28.7% growth in the asset scale of this business, with revenue soaring by 124.1% year-on-year [3][38]. Summary by Sections Financial Performance - In the first half of 2025, the average return on equity was 8.66%, an increase of 0.17 percentage points year-on-year [1]. - The company’s interest-earning assets stood at 266.626 billion yuan, reflecting a 2.3% increase from the end of the previous year [2]. - The average yield on interest-earning assets rose to 8.08%, while the cost of interest-bearing liabilities decreased to 4.02%, leading to a net interest margin of 4.51% [2][25]. Business Segments - The financial and consulting segment generated 110.90 billion yuan in revenue, accounting for 64.0% of total revenue, with a gross margin of 57.5% [1][19]. - The inclusive finance business achieved a revenue of 14.51 billion yuan, significantly contributing to overall growth [3][38]. Asset Quality - The company reported a non-performing loan ratio of 1.05% and a watchlist ratio of 5.51%, both showing a decline from the previous year [3][36]. - The provision coverage ratio remained stable at 227.33%, indicating solid asset quality [3]. Future Outlook - The company is expected to maintain a high cash dividend payout ratio, with projections for net profit attributable to shareholders of 4.01 billion yuan, 4.23 billion yuan, and 4.48 billion yuan for 2025, 2026, and 2027, respectively [4][5].

Core Viewpoint - Far East Horizon's 1H25 performance met expectations with a revenue decline of 4% year-on-year to 17.34 billion yuan and a net profit increase of 4% year-on-year to 2.16 billion yuan, resulting in an annualized ROE increase of 17 percentage points to 8.66% [1] Financial Performance - The company's financial business revenue increased by 2% year-on-year to 11.09 billion yuan, accounting for 64% of total revenue, with interest income slightly down by 0.4% to 10.66 billion yuan and consulting fee income up by 167% to 430 million yuan [1] - The net interest margin expanded with net interest spread and net interest margin increasing by 11 basis points and 4 basis points to 4.06% and 4.51% respectively, while asset quality remained stable with a non-performing loan ratio of 1.05% [1] Dividend Policy - The company increased its interim dividend payout ratio by 4 percentage points year-on-year to 50%, maintaining a dividend per share (DPS) of 0.25 HKD, indicating a strong dividend yield despite slower growth in DPS compared to profit growth due to dilution from convertible bonds [1] Industry Operations - The company's industrial operations revenue decreased by 13% year-on-year to 6.33 billion yuan, with a decline in domestic business offset by rapid growth in overseas operations [1] - The healthcare segment saw a revenue decline of 15% year-on-year to 1.8 billion yuan, with net profit down by 28% to 110 million yuan, as the company focused on optimizing cost efficiency and expanding non-insurance business [1] Valuation and Forecast - The company maintains its earnings forecast for 25/26e, currently trading at 0.67x/0.63x P/B for 25/26e, with a target price adjustment of 10% to 8.8 HKD, reflecting a significant discount in valuation and attractive dividend expectations [2]