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]
远东宏信(03360.HK)：不确定环境下业绩稳健 分红比例持续提升