智通财经APP获悉，兴证国际发布研报称，远东宏信(03360)国际化步伐再次加速，继续看好公司海外业 务持续扩张带来的业绩增量和盈利质量改善;看好公司稳定增长的派息水平对应的丰厚股东回报。预计 2025-2027年公司归母净利润同比+2.5%/+3.4%/+2.1%至39.6/40.9/41.8亿元;预计2025-2027年公司分红水 平55%，对应股息率8.9%/9.2%/9.4%。 公司计划保留原实控人董事席位，确保国际业务本地化平稳落地 目标公司董事会须由三名董事组成，收购完成后公司有权提名及委任最多两名董事，有权选举董事会主 席;Chan先生有权提名及委任一名董事。此外，股东协议中包括认购期权和认沽期权，公司可在禁售期 结束后收购目标公司的全部股权，享有对目标公司的全面控制权。 外延并购实现海外业务快速扩张，整合客户及分销资源实现协同效应 短期看此次收购为远东宏信带来的业绩增量规模较低，测算得目标集团公司2024年净利润占远东宏信/ 宏信建发归母净利润规模比例分别为0.7%/3.1%。但长期来看，目标公司拥有逾1,000名的广泛且稳定客 户群，客户的集中度偏低，且大部分客户均为当地忠实客户，其强大的地 ...

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]

Group 1 - The core viewpoint of the articles highlights the significant concentration of financing leasing companies in Shanghai, which accounts for over 20% of the national total, with 1,749 companies registered as of June 2024 [1] - Shanghai's financing leasing market has a projected investment scale exceeding 900 billion yuan in 2024, featuring major players such as Far East Horizon, China Merchants Jinling, and others [2] - The competitive landscape of China's financing leasing industry shows a low market concentration, with the top three companies holding a market share of approximately 9%, the top five at 13%, and the top ten at 23% [8] Group 2 - The financing leasing companies with registered capital exceeding 12 billion yuan are limited, primarily including Bohai Leasing and others, often backed by banks and insurance firms [5] - Companies with registered capital between 5 billion and 12 billion yuan include Bank of China Financial Leasing and others, indicating a tiered structure within the industry [5]

Summary of Conference Call Company Overview - The conference call was held by Far East Horizon Co., Ltd. to discuss its 2024 annual performance and future strategies [1][2] - The company operates in multiple sectors, including financial services and industrial operations, with a focus on risk management and asset optimization [2][5] Financial Performance - The overall revenue for the company increased by 20% year-on-year, with financial services being a significant contributor [2][5] - The company's operating expenses (OPEX) rose by approximately 2 million compared to the previous year, primarily due to overseas market expansion and R&D investments [3][4] - The net profit for the year was reported at approximately 9 billion, a decrease from 16 billion in the previous year, attributed to domestic price competition [9][10] Business Segments Financial Services - Financial services maintained stable asset quality, with a slight increase in non-performing loans (NPL) ratio due to a reduction in interest-earning assets [6][7] - The net interest margin was reported at 4.48%, with a slight decrease from the previous year [8][9] - The company emphasized a dual-driven strategy combining financial and industrial operations to mitigate risks from market fluctuations [5][12] Industrial Operations - The industrial segment, particularly Hongxin Jianfa, reported a revenue of 115.8 billion, with a net profit of 9 billion [9][10] - The overseas business has shown promising growth, achieving a breakeven point after two years of expansion, with total overseas assets exceeding 3 billion [10][11] - The company has established a strong presence in various countries, with over 50 operational sites and partnerships with more than 1,700 clients [10][11] Strategic Focus - The company aims to enhance shareholder returns, with a proposed final dividend of 0.3 HKD per share, totaling an annual distribution of 0.55 HKD, a 10% increase from the previous year [4][5] - Future strategies include cautious expansion in both domestic and international markets, focusing on familiar industries and clients [19][20] - The management highlighted the importance of maintaining a stable financial structure and risk management practices to navigate economic uncertainties [22][23] Market Outlook - The management expressed a cautious but optimistic outlook for the Chinese economy, emphasizing stability and gradual growth [32][33] - The company plans to continue its focus on nine key industries, adapting to market changes while ensuring asset safety and quality [19][20] Additional Insights - The company has been actively engaging with small and micro-enterprises, recognizing their potential for growth and contribution to the economy [27][29] - There is an ongoing evaluation of opportunities in emerging sectors, such as data centers, although no definitive plans have been made yet [40] This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, strategic direction, and market outlook.

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].