Core Viewpoint - China Cinda is a comprehensive financial group focused on non-performing asset management, with stable total assets but declining revenue and net profit in recent years [1][2] Group 1: Business Overview - China Cinda's business includes non-performing asset management and financial services, with non-performing asset management contributing 53% and financial services 48% to revenue in the first half of 2024 [1] - The total assets of China Cinda were approximately 1.58 trillion yuan at the end of Q2 2024, with operating revenue of 37.4 billion yuan and net profit of 1.6 billion yuan in the first half of 2024 [1] Group 2: Financial Performance - The company's return on equity (ROE) was 2% in 2023 and is estimated to decline to around 1% in 2024 [1] - The forecast for net profit for ordinary shareholders from 2024 to 2026 is 2.4 billion, 4 billion, and 4.7 billion yuan, representing year-on-year growth of -43%, 67%, and 16% respectively [2] Group 3: Subsidiary Performance - China Cinda operates through four financial subsidiaries, with significant growth in the management scale of Jinda Trust and improved ROE for Jinda Financial Leasing, while Nanshan Bank faces rising non-performing loan ratios [2] - The annualized ROE for Nanshan Bank in the first half of 2024 was 5.1% [2] Group 4: Market Outlook - The company is expected to benefit from economic recovery, which may lead to a reduction in asset impairment losses and improvement in performance [2] - The estimated reasonable valuation for the company is between 1.27 and 1.62 HKD, indicating a premium of 2% to 30% relative to the current stock price [2]
中国信达(01359.HK)：受益经济复苏 业绩筑底