Core Viewpoint - The company, Macro China (09930), anticipates a significant decline in revenue and profit for the fiscal year 2025 compared to 2024, with expected revenue dropping by nearly 20% and net profit attributable to shareholders decreasing by 70%-90% [1] Group 1: Revenue Expectations - The projected revenue for 2024 is approximately RMB 11.581 billion, while the revenue for the fiscal year ending December 31, 2025, is expected to decrease by nearly 20% [1] - The expected net profit attributable to shareholders for 2024 is around RMB 896 million, with a forecasted decline of 70%-90% for 2025 [1] Group 2: Reasons for Decline - The decline in revenue and profit is primarily attributed to the market environment in the mainland equipment operation industry, leading to a continuous drop in domestic rental prices [1] - Despite stable utilization rates for high-altitude work platforms in 2024, the revenue and gross margin from domestic operating leasing services are expected to decline year-on-year [1] - The company is actively reducing its material business in mainland China, resulting in decreased revenue and gross margin from engineering technical services [1] - In 2024, the company undertook significant sales of inefficient material assets, but the scale of disposals is expected to slow in 2025, impacting trade revenue and gross margin due to falling steel market prices [1]

Core Viewpoint - The company, Macro Holdings (09930), anticipates a significant decline in revenue and profit for the fiscal year 2025 compared to 2024, primarily due to adverse market conditions in the mainland China equipment rental industry and strategic business adjustments [1] Group 1: Revenue Expectations - The company projects a revenue of RMB 11.581 billion for the year 2024, with an expected decrease of nearly 20% in total revenue for the fiscal year ending December 31, 2025 [1] - The anticipated profit attributable to shareholders for 2024 is approximately RMB 896 million, with a forecasted decline of 70%-90% in profit for 2025 [1] Group 2: Reasons for Decline - The decline in revenue and profit is attributed to several factors, including: - Continuous decrease in domestic equipment rental prices affecting operational leasing service revenue and gross margin, despite stable utilization rates of high-altitude work platforms compared to 2024 [1] - Ongoing strategic contraction in the materials business leading to reduced revenue and gross margin in engineering technical services [1] - A significant sale of low-efficiency material assets in 2024, with a slowdown in asset disposal in 2025, alongside a decline in gross margin from material sales due to falling steel market prices, resulting in a notable decrease in trade revenue and gross margin [1]

Core Viewpoint - The company,宏信建发, anticipates a significant decline in revenue and profit for the fiscal year 2025 compared to 2024, primarily due to adverse market conditions in the mainland equipment rental industry and strategic business adjustments [1] Revenue Outlook - The company expects a revenue decrease of nearly 20% in 2025, with projected revenue of approximately RMB 115.81 billion for 2024 [1] - The anticipated decline in revenue is attributed to a continuous drop in domestic equipment rental prices, despite stable utilization rates of high-altitude work platforms [1] Profit Forecast - The company forecasts a 70%-90% reduction in shareholder profit for 2025, compared to an estimated RMB 8.96 billion for 2024 [1] - The decline in profit is linked to lower operational leasing service revenue and gross profit margins, as well as a slowdown in the disposal of inefficient material assets [1] Market Conditions - The domestic equipment rental market is experiencing a downward trend in rental prices, impacting revenue and gross margins [1] - The company is actively pursuing a contraction strategy in its mainland material business, leading to decreased revenue and gross margins in engineering technical services [1] Asset Disposal Impact - In 2024, the company undertook significant sales of inefficient material assets, but the scale of disposals is expected to slow in 2025 [1] - The gross profit margin from material asset sales has been negatively affected by declining steel market prices, resulting in a notable decrease in trade revenue and gross margins [1]

Investment Rating - The report initiates coverage on Far East Horizon with an "Accumulate" rating [1][6][19] Core Views - Far East Horizon has evolved from being the first listed financing leasing company in China to a comprehensive group with financial services as its "shield" and industrial operations as its "spear" [1][23] - The company is expected to benefit from stable leasing investment and a decrease in funding costs, alongside profit expansion in its industrial operations due to its overseas strategy [1][19] Summary by Sections Company Overview - Established in 2011, Far East Horizon is the first listed financing leasing company in China, now a comprehensive group integrating financial and industrial services [1][23] - The company has undergone several phases of development, transitioning from a traditional leasing company to a comprehensive service provider [24][25] Financial Performance - The revenue structure is shifting towards industrial operations, which are projected to account for 42.71% of total revenue by 2024, reflecting a 4.03 percentage point increase year-on-year [2] - The company has maintained stable growth in its financial services, with a focus on compliance and risk control, while also expanding its inclusive finance business [2][54] Business Segments - The financial services segment remains the core, with leasing as the primary focus, while the industrial operations segment includes equipment and healthcare services [40] - The equipment operation segment has shown significant growth, with revenue increasing from 1.8 billion in 2018 to 11.6 billion in 2024, reflecting a CAGR of 36.54% [46] Asset Quality - Far East Horizon has improved its asset quality significantly, with non-performing asset formation rates projected to be 0.50%, 0.43%, and 0.23% for 2023, 2024, and 2025H respectively [3][32] - The company has implemented a prudent project investment strategy to control the quality of new business and reduce the scale of urban public projects [3] Profit Forecast and Valuation - The forecasted total revenue for 2025-2027 is 376.10 billion, 375.77 billion, and 384.89 billion respectively, with a slight decline in growth rates expected [15] - The report anticipates a rebound in net profit margins, with projected net profits of 40.51 billion, 42.32 billion, and 44.30 billion for the same period [15][19]

Core Viewpoint - Far East Horizon reported a year-on-year increase in net profit attributable to shareholders for the first three quarters of 2025, indicating stable growth in its financial business despite challenges in its industrial operations [1][2]. Financial Business: Stable Growth - The company's interest margin continues to expand, with a net interest margin of 4.06% and a net interest yield of 4.51% for the first half of 2025, compared to 3.95% and 4.47% in the first half of 2024 [2]. - The scale of interest-earning assets reached 266.6 billion RMB in the first half of 2025, showing a slight increase of 2.30% compared to the end of 2024 [1]. - Inclusive finance business has shown significant growth, with interest-earning assets increasing by over 60% year-on-year, contributing to a doubling of revenue in the first three quarters [2][3]. Industrial Operations: Facing Challenges - The equipment operation segment, primarily represented by Hongxin Jianda, experienced a revenue decline of over 10% year-on-year in the first three quarters, attributed to a competitive domestic market and a strategic reduction in domestic business scale [1][2]. - The net profit for the equipment operation segment fell by over 70% year-on-year, although the decline has slightly narrowed compared to the first half of 2025 [2]. - The hospital operation segment remained stable, with a slight revenue decline but continued to maintain profitability [2]. Dividend Characteristics - The company emphasizes enhancing shareholder returns, with a projected dividend per share (DPS) of 0.25 HKD for the first half of 2025 and a payout ratio of approximately 50% [3]. - The estimated dividend yield for 2025 is around 8.0%, despite challenges in the industrial operations segment [3].

Core Viewpoint - The company, Macro Holdings (09930.HK), anticipates a significant decline in revenue and shareholder profit for the first half of 2025 compared to the same period in 2024, with expected revenue dropping by approximately 10% and shareholder profit decreasing by 80%-90% [1][2]. Group 1: Revenue and Profit Forecast - The company expects total revenue for the first half of 2025 to decrease to approximately RMB 4,385,179 thousand from RMB 4,872,421 thousand in the first half of 2024, indicating a decline of about 10% [1]. - Shareholder profit for the first half of 2025 is projected to fall to between RMB 26,823 thousand and RMB 53,646 thousand, down from RMB 268,228 thousand in the first half of 2024, representing a decrease of 80%-90% [1]. Group 2: Reasons for Decline - The decline in revenue and profit is primarily attributed to the adverse market conditions in the equipment rental industry in mainland China, where rental prices have continuously decreased, impacting operational leasing income and gross profit despite stable utilization rates of aerial work platforms [2]. - The company has adopted a proactive contraction strategy for its materials business in mainland China, leading to a reduction in engineering technical service income and a delayed impact on gross profit margins due to the clearance of labor and site costs [2]. - The ongoing decline in steel prices has also contributed to a decrease in trade income and gross profit from the sale of material assets [2]. - Although the overseas business segment has experienced rapid revenue growth and achieved profitability, its smaller scale compared to domestic operations means it cannot fully offset the downturn in the domestic market [2].