远东宏信：金融业务稳健支撑丰厚分红

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company recorded a net profit attributable to shareholders of 3.889 billion RMB in 2025, a slight increase of 0.67% year-on-year, which is slightly below the expected 4 billion RMB [1] - The financial business remains robust, with interest-earning assets recovering growth, reaching a net amount of 272 billion RMB by the end of 2025, an increase of 4.38% compared to the end of 2024 [2] - The asset quality continues to improve, with a non-performing loan ratio of 1.03% at the end of 2025, better than the 1.07% at the end of 2024 [2] - The net interest margin reached 4.39% in 2025, up from 4.0% in 2024, supported by the rapid expansion of inclusive finance [2] - The company plans to maintain a stable dividend payout ratio, with a dividend per share (DPS) of 0.56 HKD for 2025, representing a payout ratio of approximately 61% [5] Financial Business Summary - The net amount of interest-earning assets grew to 272 billion RMB by the end of 2025, driven by an extended asset duration and rapid development of inclusive finance, which accounted for 10.4% of total interest-earning assets [2] - The net interest margin improved to 4.39% in 2025, with the asset yield increasing from 8.06% in 2024 to 8.18% in 2025 [2] - The company achieved a non-performing loan ratio of 1.03% at the end of 2025, with a provision coverage ratio of 227.82% [2] Inclusive Finance Summary - The inclusive finance business saw a significant increase, with net interest-earning assets reaching 28.179 billion RMB, accounting for 10.4% of total interest-earning assets [3] - Interest income from inclusive finance grew by 125.25% year-on-year to 3.541 billion RMB, with an average asset yield of approximately 15.7% [3] - The company has established over 80 business outlets and served more than 30,000 clients in economically developed regions [3] Industrial Operations Summary - The industrial operations segment faced challenges, with net profit for Hongxin Jianfa declining by 83.6% to 147 million RMB due to intensified domestic competition [4] - Hongxin Health reported a revenue of 3.572 billion RMB, down 12.7% year-on-year, with a net profit of 83 million RMB, a decrease of 64.3% [4] Dividend and Valuation Summary - The company announced a DPS of 0.56 HKD for 2025, with a payout ratio of approximately 61%, indicating a stable dividend foundation [5] - The target price is adjusted to 8.90 HKD based on DCF valuation, reflecting a decrease from the previous target of 9.00 HKD [5][12]