Core Viewpoint - Far East Horizon's performance is below expectations, with a projected revenue decline of 5% to 35.8 billion yuan in 2025 and a slight net profit increase of 1% to 3.9 billion yuan, primarily due to ongoing pressure in the construction and development sector and cautious provisioning amid rapid expansion in inclusive finance [1][2] Financial Performance - Financial business revenue is expected to grow by 4.5% to 22.7 billion yuan in 2025, accounting for 63% of total revenue, driven by a 3% increase in interest income to 21.8 billion yuan and a significant 66% rise in consulting fee income to 900 million yuan [1] - The net interest margin is projected to expand by 34 basis points to 4.83%, with the average asset yield increasing by 4.9 percentage points to 15.71% [1] Industry Operations - The overall industry operations are under pressure, with a projected revenue decline of 18% to 13.3 billion yuan in 2025, and a 6 percentage point decrease in revenue share to 37% [2] - The construction and development segment is expected to see a 19% revenue decline to 9.4 billion yuan, with adjusted net profit dropping by 84% to 150 million yuan, prompting a shift towards overseas markets [2] Profit Forecast and Valuation - The earnings forecast for 2026 has been reduced by 13% to 4.1 billion yuan, with a new forecast for 2027 set at 4.3 billion yuan [2] - The company is currently trading at 0.6x P/B for both 2026 and 2027, with a target price maintained at 8.8 HKD, indicating a potential upside of 15% [2]
远东宏信(03360.HK)：金融业务稳固压舱石效应 股东回报进一步提升