Investment Rating - Maintain Buy rating [1] Core Views - Industrial operations are the main growth engine, with the dividend payout ratio steadily increasing [4] - The company's 2023 performance met expectations, with revenue of RMB 37.96 billion (+3.8% YoY) and net profit of RMB 6.19 billion (+1.0% YoY) [4] - The company plans to distribute a dividend of HKD 0.5 per share, corresponding to a static dividend yield of 8.3% based on the closing price on March 12, 2024 [4] Revenue Breakdown - Industrial operations contributed 39% of revenue, up 3 percentage points YoY [4] - Financing lease interest income was RMB 22.47 billion (+3.6% YoY), accounting for 59% of revenue [4] - New business systems achieved interest income of RMB 2.09 billion (+12.1% YoY), accounting for 9% of revenue [4] - Industrial operations revenue was RMB 14.74 billion (+11% YoY), with equipment operations revenue at RMB 9.61 billion (+22% YoY) and hospital operations revenue at RMB 4.24 billion (+15.5% YoY) [4] Financing Lease Business - The interest-earning assets at the end of the period were RMB 2.69 trillion, flat compared to the beginning of the year [4] - The net interest margin expanded to 3.98% (+0.04 percentage points YoY) [4] - The non-performing loan ratio was 1.04% (-0.01 percentage points YoY), with a provision coverage ratio of 228% [4] Equipment Operations - The company maintains the leading market share in three major segments and has expanded into Southeast Asia [4] - The company's aerial work platform management scale reached 178,000 units, ranking first in Asia and top three globally [4] - The number of domestic service points increased to 490, covering nearly 200 cities, with 4 overseas points in Malaysia and Indonesia [4] Hospital Operations - The hospital operations segment benefited from the normalization of the operating environment [4] - The company focused on building regional differentiated disciplines and implemented a capital strategy to dispose of underperforming hospitals [4] - By the end of 2023, Hongxin Health owned 25 controlled hospitals, a decrease of 6 from the end of 2022 [4] Financial Forecasts - Revenue is expected to grow to RMB 47.26 billion by 2026, with a CAGR of 8.9% from 2023 to 2026 [5] - Net profit is expected to reach RMB 7.28 billion by 2026, with a CAGR of 6.6% from 2023 to 2026 [5] - The price-to-book ratio (PB) for 2024 is forecasted at 0.44x [4] Income Statement Highlights - Interest income is expected to grow to RMB 25.77 billion by 2026 [6] - Revenue from industrial operations is projected to reach RMB 21.38 billion by 2026 [6] - Net profit attributable to common shareholders is forecasted to be RMB 7.28 billion by 2026 [6] Balance Sheet Highlights - Total assets are expected to reach RMB 486.58 billion by 2026 [7] - Net interest-earning assets are projected to grow to RMB 336.41 billion by 2026 [7] - Common shareholders' equity is forecasted to increase to RMB 64.22 billion by 2026 [7]
产业运营为增长主要引擎，分红比例稳步提升