Jinwu Financial News | Far Eastern Hongxin (03360) declined under pressure. As of press release, it reported HK$6.05, down 4.72%, with a turnover of HK$18.3047 million.
According to the J.P. Morgan Chase Research Report, Yuandong Hongxin's profit for the 2023 fiscal year was 6.2 billion yuan, an increase of 1%, which was basically in line with its expectations. Revenue was weaker than expected, but it was offset by lower credit costs.
According to the bank, the company's credit costs have been reduced with the support of the recovery of assets and industrial operations. Management said that although the macro outlook remains highly uncertain, they are more confident in controlling asset quality over the next 12 months, so they have more flexibility in releasing excess reserves (excess reserves) and keep credit costs relatively low. However, the negative factor was that net interest rates and portfolios contracted slightly, mainly due to a decline in the leverage ratio of negative asset production statements. Management, on the other hand, anticipates that a drop in net interest rates in 2024 may be inevitable.
The bank lowered the company's profit forecast for the 2024 and 2025 fiscal years by 3% and 11%, and the target price decreased by 5% from HK$9.4 to HK$8.9. However, the company has always made efforts to increase shareholder returns, so it maintains a rating of “increase in holdings.”