Core Viewpoint - The report from Industrial Securities maintains a "Buy" rating for Far East Horizon (03360), highlighting stable overall performance and increased shareholder returns, with a projected dividend of HKD 0.56 per share for 2025, corresponding to a cash payout ratio of approximately 61% [1] Financial Performance Summary - In 2025, Far East Horizon reported total revenue of CNY 35.785 billion, a year-on-year decrease of 5.20%; pre-tax profit was CNY 8.032 billion, up 0.14%; net profit was CNY 3.995 billion, down 11.59%; and attributable net profit was CNY 3.889 billion, up 0.67%, with an annualized ROE of 7.71% [1] Business Segment Analysis - The financial and consulting segment achieved revenue of CNY 22.676 billion, a year-on-year increase of 4.47%, with inclusive finance interest income rising significantly by 125.25% to CNY 3.541 billion. In contrast, the industrial segment faced challenges, with revenue from Hongxin Jianfa declining by 19.19% to CNY 9.359 billion and Hongxin Health down 12.72% to CNY 3.572 billion [2] Profitability and Asset Quality - The net interest margin widened, with the average yield on interest-earning assets at 8.18%, up 12 basis points year-on-year, and the yield from inclusive finance at 15.71%. The average cost of liabilities decreased by 27 basis points to 3.79%, leading to a net interest margin increase of 39 basis points to 4.39%. The company adopted a strategy of selective client engagement, resulting in a bad debt write-off ratio of 50.37% and a non-performing loan ratio of 1.03%, down 4 basis points year-on-year [3] Overseas Business Growth - The company is actively expanding its overseas business, with 77 overseas outlets by the end of 2025, up from 53 in 2024. Revenue from overseas operations for Hongxin Jianfa reached CNY 1.4 billion, a substantial increase of 260.3%, contributing 15.0% to total revenue, with a net profit of CNY 135 million, up 70.1% [4]