Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company achieved total revenue of 37.7 billion HKD in 2024, remaining stable year-on-year, while net profit attributable to ordinary shareholders decreased by 38% to 3.9 billion HKD [1][4] - The average ROE for 2024 was 7.8%, down by 5.2 percentage points year-on-year, with a cash dividend per share of 0.55 HKD, reflecting a stable growth in dividends and a cash dividend payout ratio of 56% [1][3] - The total assets at the end of 2024 grew by 3% to 360.4 billion HKD, with loans and receivables declining by 4% to 260.6 billion HKD, indicating stable asset quality [1][3] Financial Performance Summary - The company’s interest-earning asset yield in 2024 was 8.06%, down by 18 basis points, while the cost of interest-bearing liabilities decreased to 4.06%, down by 20 basis points [2] - The net interest margin for 2024 was 4.48%, a decrease of 10 basis points year-on-year [2] - The revenue from the industrial operations segment grew by 10% to 16.2 billion HKD, with a slight decrease in gross margin to 30% [2][3] - The non-performing loan ratio at the end of 2024 was 1.07%, up by 0.03 percentage points from the beginning of the year, while the coverage ratio remained stable at 228% [3] Earnings Forecast and Financial Indicators - The forecast for net profit attributable to ordinary shareholders for 2025-2027 is 4.2 billion HKD, 4.4 billion HKD, and 4.6 billion HKD respectively, with expected growth rates of 10%, 4%, and 4% [3][4] - The diluted EPS for the same period is projected to be 0.98 HKD, 1.02 HKD, and 1.06 HKD, with corresponding PE ratios of 5.8x, 5.6x, and 5.4x [3][4] - The dynamic dividend yield is approximately 10%, indicating a strong return for shareholders [3]
远东宏信：2024年报点评：资产质量稳定，从关注EPS到DPS-20250310