Investment Rating - The investment rating for the company is "Neutral" [5][45]. Core Views - The company reported an increase in both revenue and net profit for the first half of 2025, with total revenue reaching 40.2 billion yuan, a year-on-year growth of 19.9%, and net profit attributable to ordinary shareholders amounting to 6.2 billion yuan, a 15.7% increase [1][3]. - The company has focused on its core business of non-performing asset management, with significant revenue growth in the non-performing asset management segment, which saw a 58.3% increase year-on-year [2][21]. - Credit costs have risen, with the credit cost rate for the first half of 2025 at 15.3%, significantly higher than the previous year, indicating enhanced risk resilience [2][28]. Financial Performance - The company achieved a total asset amount of 1.01 trillion yuan by the end of Q2 2025, reflecting a 2.7% increase from the beginning of the year but a 4.2% decrease year-on-year [1][4]. - The annualized ROE for the first half of 2025 was 21.1%, while the ROA was 1.1% [1][17]. - The company expects net profit attributable to ordinary shareholders to grow to 10.4 billion yuan in 2025, with projected growth rates of 8.5% in 2025, 4.1% in 2026, and 1.1% in 2027 [3][34]. Revenue and Cost Structure - The revenue from the non-performing asset management segment was 30.6 billion yuan, while the asset management and investment segment generated only 1.8 billion yuan [21][25]. - The company's cost structure is primarily driven by asset impairment losses and interest expenses, with significant increases in impairment losses due to the rise in credit costs [26][28]. - The company has made substantial provisions for asset impairment, which has improved its risk management capabilities [2][28]. Valuation and Price Target - The reasonable price range for the company's stock is estimated to be between 1.16 and 1.28 HKD, representing a potential upside of 6% to 17% compared to the closing price of 1.09 HKD on September 12, 2025 [3][45]. - The absolute valuation method suggests a value range of 1.49 to 1.67 HKD, while the relative valuation indicates a price range of 0.82 to 0.88 HKD [39][42].
中信金融资产（02799）：2025年中报点评：收入利润增加，信用成本上升