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 decrease of 5.20% year-on-year; 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, an increase of 4.47% year-on-year, 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 net profit of CNY 150 million, while Hongxin Health reported revenue of CNY 3.572 billion, down 12.72%, with a net profit of CNY 80 million [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%. The company improved its liability structure by replacing high-cost liabilities, resulting in a net interest margin increase of 39 basis points to 4.39%. The non-performing asset write-off ratio reached 50.37%, with a slight increase in the overall provision coverage ratio to 227.82% and a reduction in the non-performing loan ratio to 1.03%, down 4 basis points year-on-year [3] Overseas Business Growth - The company actively expanded its overseas business, with 77 overseas outlets by the end of 2025, up from 53 in 2024. The revenue from Hongxin Jianfa's overseas business reached CNY 1.4 billion, a substantial increase of 260.3% year-on-year, contributing 15.0% to its total revenue. The after-tax net profit from this segment was CNY 135 million, up 70.1%, accounting for 91.7% of the total net profit [4]