Jinwu Financial News | According to Guotai Junan International Development Research, in terms of finance, Yuandong Hongxin (03360) had net interest-bearing assets of 269.1 billion yuan, with an average interest yield of 8.24%, an increase of 0.24pt over the previous year, mainly due to excellent customer service and stable pricing brought about by new comprehensive financial services. The average cost ratio of interest-bearing debt was 4.26%, an increase of 0.20 pt over the previous year. Mainly due to the issuance of various new bond products, the increase in costs due to the increase in yield in the 23-year bond market, and the increase in costs due to new withdrawals from overseas banks affected by the overseas interest rate hike cycle. Net interest spread for '23 was 4.58%, -0.09pt year on year; net profit spread 3.98%, 0.04pt year on year, relatively stable.
According to the bank, the quality of the company's assets is stable, moderate and improving, the non-performing asset ratio decreased by 0.01pt to 1.04%; the ratio of interest-bearing assets overdue for more than 30 days remained 0.91%. In terms of industrial operations, the revenue share increased from 36.02% to 38.68%, effectively hedging the impact of the cycle and external environment on the company. In addition, the company's financial business will implement system changes to optimize the fineness of business development through organizational structure adjustments, etc., such as putting the traditional financial front and back office, strengthening front-line empowerment; and optimizing resource allocation and strengthening risk management for new types of businesses.
The bank said that in 2023, the company achieved revenue of 37.960 billion yuan, up 3.76% year on year, mainly due to rapid growth in industrial operations, with revenue of 11.38% year on year, while financial business was slightly pressured by the economic environment, with revenue growth of -0.58% year over year; net profit to mother of 6.193 billion yuan, 1.04% year over year; dividend of HK$0.5 per share, with a dividend rate of 31%, exceeding expectations. Considering that the slow recovery in the current external economic environment affects the financial business growth rate, the 2024-2026 EPS was reduced to 1.57 (1.89,-17.0%) /1.82 (2.17,-15.9%) /2.25 yuan. Maintain the “Overweight” rating and maintain the target price of HK$11.96.