Jinwu Financial News | According to the Zheshang Securities Research Report, in 2023, Yuandong Hongxin (03360) achieved total revenue of 37.96 billion yuan, up 3.8% year on year; net profit to mother was 6.19 billion yuan, up 1.0% year on year. The profit growth rate was lower than the revenue growth rate, mainly due to the high growth rate of sales and administrative expenses; the weighted average return on net assets was 12.99%, down 1.14 pcts year on year, and the performance was in line with expectations.
According to the bank, the company's dividend payments are active. In 2023, the company plans to pay a dividend of HK$0.50 per share, corresponding to a dividend rate of about 30% and a dividend rate of about 8%, which is higher among financial companies. In addition, the company plans to implement equity incentives and grant restricted shares no more than 6% of the total number of shares issued on the same day, or 260 million shares. Active dividend payments and equity incentive plans reflect the company's confidence in long-term development.
The bank continued that Yuandong Hongxin's financial and industrial operating revenue has grown steadily, actively pays dividends to return shareholders, and implements equity incentives to promote long-term development. Yuandong Hongxin's net profit is expected to grow at a year-on-year rate of 7%/9%/13% in 2024-2026, and EPS of 1.54/1.65/1.83 yuan. According to the segmented valuation method, the company was given a target price of 9.89 yuan (exchange rate HKDCNY 0.92), corresponding to 2024 PE of 5.9 times, maintaining a “buy” rating.