Investment Rating - The investment rating for the company is "Buy" [5][18]. Core Insights - The company reported a slight decrease in revenue for 2024, with total revenue of 37.75 billion, down 0.55% year-on-year, while net profit attributable to shareholders fell significantly by 37.6% to 3.86 billion [3][4]. - The company initiated its first interim dividend in 2024, distributing a total of 1.953 billion, which represents over 55% of the net profit for the year [3]. - The company has adjusted its earnings forecasts for 2025-2026 and introduced a new forecast for 2027, maintaining a "Buy" rating based on expected growth in financing leasing and industrial operations [9]. Financial Data and Profit Forecast - Revenue and profit forecasts for the company are as follows: - 2023: Revenue 37.96 billion, Net Profit 6.19 billion - 2024: Revenue 37.75 billion, Net Profit 3.86 billion - 2025E: Revenue 40.91 billion, Net Profit 4.26 billion - 2026E: Revenue 44.33 billion, Net Profit 4.77 billion - 2027E: Revenue 47.65 billion, Net Profit 5.48 billion [4][10]. - The company’s return on equity (ROE) for 2024 was 7.80%, down 5.2 percentage points year-on-year [3]. Business Segments Performance - The financing leasing segment generated interest income of 21.18 billion in 2024, accounting for 56% of total revenue, while the industrial operations segment contributed 16.18 billion, representing 42.7% of total revenue [9]. - The company’s equipment operation segment has a strong market position, ranking among the top three globally, with significant international expansion efforts yielding a 27-fold increase in overseas revenue [9]. - The hospital operation segment improved its net profit to 0.232 billion, a 34.6% increase year-on-year, with a gross margin recovery to 19.97% [9]. Valuation and Target Price - The target price for the company is set at 7.80 per share, indicating a potential upside of 37% from the current closing price of 6.18 [9]. - The average price-to-book (PB) ratio for comparable companies is 0.65, which has been used to derive the target price [9].
远东宏信：生息资产略有缩表，高空作业海外布局显效-20250309