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]
中金：维持远东宏信(03360)跑赢行业评级 升目标价至8.8港元