Greater China Banks Daily：Far East Horizon H124 results；Chengdu eased criteria for first~home mortgages；Number of listed residential foreclosure houses up by 12%+ YoY in H124

Investment Rating - The report maintains a "Buy" rating for Far East Horizon, citing an attractive dividend yield of 9.3% and limited downside risk to the absolute dividend per share (DPS) amount [1][6]. Core Insights - Far East Horizon's net profit for 1H24 was Rmb2,085 million, representing a 32% year-over-year decline, largely attributed to non-core items such as investment-related income and taxes [1][6]. - The company declared its first interim dividend of HK$0.25 per share, with a payout ratio of 47%, indicating a commitment to maintain the FY24 DPS at HK$0.50 despite earnings challenges [1][6]. - The easing of first-home mortgage criteria in Chengdu is expected to stimulate housing demand, allowing buyers with multiple properties to benefit from favorable mortgage policies [1][2]. Summary by Sections Far East Horizon Financial Performance - Reported a net profit of Rmb2,085 million in 1H24, down 32% YoY and 33% HoH, missing expectations [1]. - Operating profits before provisions decreased by 8% YoY, which is more aligned with a 4% contraction in average interest-earning assets [1]. - The company plans to maintain its DPS at HK$0.50 for FY24, despite the earnings decline [1]. Residential Foreclosure Market - The number of listed residential foreclosure houses increased by over 12% YoY in H124, reaching 202,000 units [2]. - Notable increases in tier-2 cities, with Zhengzhou seeing a 43% YoY rise in listed units [2]. - The average transaction price for residential foreclosure houses was Rmb9,084 per square meter, down 6.7% YoY [2]. Mortgage Policy Changes - Chengdu has eased criteria for first-home purchases, allowing buyers with a second house listed for sale to qualify for favorable mortgage terms [1][2]. - The new rules are effective from August 13, 2024, potentially boosting housing market activity [1][2]. Valuation Summary for China Banks - Various banks are rated as "Buy," "Neutral," or "Sell," with specific price targets and implied upside percentages provided [6][7]. - For instance, BOC is rated "Buy" with a price target of HK$4.20, implying a 23.5% upside [6][7]. - The average dividend yield for H-share banks is noted at 7.7%, with varying growth rates projected for EPS in 2024 and 2025 [6][7].