Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company experienced a significant decline in net profit for 2024, with a decrease of 37.6% year-on-year, primarily due to changes in the fair value of non-operating financial assets and a one-time impact from cross-border income tax [8] - The financial services segment saw a slight revenue decline of 7% to 21.7 billion, while the industrial operations segment achieved a revenue increase of 10% to 16.2 billion, indicating a shift in revenue sources [8] - The company continues to enhance shareholder returns, proposing a total cash dividend of 0.55 HKD per share for 2024, a 10% increase from 2023 [8] - The report projects a recovery in net profit for 2025 and 2026, with expected growth rates of 26.57% and 11.11%, respectively [8] Summary by Sections Financial Performance - Total revenue for 2024 is reported at 37.749 billion, a slight decrease of 0.55% year-on-year [8] - The net profit attributable to shareholders for 2024 is 3.862 billion, down from 6.193 billion in 2023 [8] - The average return on equity (ROE) for 2024 is projected at 7.80%, a decrease of 5.19 percentage points year-on-year [8] Business Segments - Financial services revenue decreased by 7% to 21.7 billion, with interest income down 6% to 21.2 billion [8] - The industrial operations segment's revenue increased by 10% to 16.2 billion, with equipment operations revenue rising by 21% to 11.6 billion [8] - The company’s asset quality remains stable, with a non-performing asset ratio of 1.07% [8] Dividend Policy - The company plans to distribute a total cash dividend of 0.55 HKD per share for 2024, reflecting a commitment to increasing shareholder returns [8] Earnings Forecast - The report revises the earnings forecast, projecting net profits of 4.889 billion for 2025 and 5.432 billion for 2026, with corresponding growth rates of 26.57% and 11.11% [8]
远东宏信：2024年年报点评：业绩相对承压，产业运营业务表现突出-20250309