Core Viewpoint - The financial performance of CITIC Financial Asset Management Co., Ltd. for the fiscal year 2024 has significantly exceeded market expectations, indicating a successful transformation and a return to high-quality development [1][2]. Financial Performance - For the year ending December 31, 2024, CITIC Financial Asset reported total revenue of 112.766 billion yuan, a 60% increase year-on-year, and a net profit attributable to shareholders of 9.618 billion yuan, which is 5.4 times that of the previous year [1]. - The total assets at year-end reached 984.329 billion yuan, an increase of 16.225 billion yuan from the previous year, with an average return on equity rising by 14.8 percentage points to 18.4% [1]. - The company achieved a 53.5% growth in revenue from continuing operations, with core financial indicators surpassing capital market expectations [1]. Business Strategy and Structure - CITIC Financial Asset has fully divested from financial services, focusing on non-performing asset management and asset management and investment divisions, which now drive its operations [3]. - The non-performing asset management business generated 90.671 billion yuan in revenue, accounting for 84.4% of total revenue, with assets in this division totaling 833.185 billion yuan, representing 86.7% of total assets [3]. Market Position and Growth - The company maintains a leading market position in the non-performing asset sector, with a debt balance of approximately 180 billion yuan in non-performing asset claims and a market share that remains among the top in the industry [4]. - CITIC Financial Asset has improved its asset quality and risk resistance, with a 30% reduction in non-performing asset balance and a doubling of the provision coverage ratio to 226% [4]. Social Responsibility and Strategic Support - The company plays a crucial role in supporting national policies, contributing to financial risk prevention and economic stability, while also achieving economic and social value [5]. - CITIC Financial Asset has actively participated in initiatives to alleviate financial distress in the real estate sector, ensuring the delivery of 66,000 housing units and addressing wage arrears for migrant workers [5]. Industry Outlook - The current economic environment presents significant opportunities for asset management companies (AMCs) to expand their non-performing asset acquisition business, driven by ongoing risks in various sectors [7]. - Regulatory policies are encouraging AMCs to broaden their scope, enhancing their capabilities in acquiring, managing, and disposing of non-performing assets [7]. Market Response - The capital market has responded positively to CITIC Financial Asset's new brand image, with a 62.5% increase in stock price and active trading volume exceeding 100 million shares over ten consecutive trading days [8]. - The inclusion of CITIC Financial Asset in multiple Hang Seng indices is expected to diversify fund allocations and attract more capital, particularly from southbound funds [8].
中信金融资产（02799）年报解读： 盈利百亿远超市场预期 长期价值中枢有望逐步上移