Far East Horizon Limited · HKEX:3360
Far East Horizon — Investor Presentation (August 2022)
36 slides from Far East Horizon's investor presentation, August 2022
Slide 1: Investor Presentation Far East Horizon Limited
Investor Presentation Far East Horizon Limited August 2022
Slide 2: Disclaimer
Disclaimer This material is prepared by Far East Horizon Limited (the “Company”) and has not been independently audited. This document contains confidential and proprietary information, and its contents have not been verified by an independent third party. The Company does not guarantee the accuracy
Slide 3: Contents
Contents 1 Results Overview 2 Business Analysis Note: Unless otherwise specified, the data herein is as of 30 June 2022 3
Slide 4: 2022 1H results: Further growing profitability and steadily improved asset quality
2022 1H results: Further growing profitability and steadily improved asset quality • In 2022 1H, despite the complex and severe environment, our revenue and net profit attributable to the parent still reached around RMB17.7 billion and RMB2.8 billion respectively, representing a year-on-year increas
Slide 5: Steady improvement in profitability metrics
Steady improvement in profitability metrics • Annualized ROA and annualized ROE were about 1.8% and 13.6% respectively, which constantly generated satisfactory returns • EPS amounted to RMB0.68, representing a year-on-year increase of about 6%; net assets per share amounted to RMB9.77, representing
Slide 6: Further optimized revenue structure
Further optimized revenue structure • Adhering to the strategy of “finance + industry”, the industrial operation segment sustained rapid growth, which increased revenue contribution and optimized the Group’s overall revenue structure • The rapid development of the industrial operation segment is exp
Slide 7: Pandemic response: Actively responded to pandemic lockdown and control
Pandemic response: Actively responded to pandemic lockdown and control while striving to ensure steady performance growth • In the face of the recurring pandemic outbreaks and the prolonged lockdown and control in Shanghai, where the Company is headquartered, in 1H 2022, the Company’s CEO took the l
Slide 8: Financial leasing: Steady growth in business size
Financial leasing: Steady growth in business size • The interest-earning assets increased to over RMB284.1 billion, with realized financial leasing revenue of over RMB11.6 billion, representing a year-on-year increase of about 4% • The growth was mainly attributable to the continuous development in
Slide 9: Financial leasing: Steady growth in rate of net return
Financial leasing: Steady growth in rate of net return • The NIS of the Company was 3.75%, representing a year-on-year increase of 0.63 percentage point; the NIM was 4.49%, representing a year-on-year increase of 0.53 percentage point • The growth was mainly attributable to the fact that the Company
Slide 10: Financial leasing: Steady improvement in asset quality with sound and prudent accounting policies
Financial leasing: Steady improvement in asset quality with sound and prudent accounting policies • The NPL was 1.06%, and the asset quality improved steadily, demonstrating the strict risk control system and strong asset management capability of the Company • The proportion of interest-earning asse
Slide 11: Financial leasing: Reasonable matching of asset and liability maturity
Financial leasing: Reasonable matching of asset and liability maturity with acceptable level of security and efficiency • The Company prudently manages the matching of asset and liability maturity to ensure liquidity safety and capital utilization efficiency Matching of asset and liabilities (RMB'00
Slide 12: Horizon Construction Development: Continued rapid growth
Horizon Construction Development: Continued rapid growth • Horizon Construction Development maintained rapid growth, with revenue and net profit of about RMB3.6 billion and RMB290 million respectively, representing a year-on-year increase of about 47% and 17% respectively • Horizon Construction Deve
Slide 13: Horizon Construction Development
Horizon Construction Development • In April 2021, a strategic financing of over US$200 million was completed with investors including strategic investors such as XCMG, Zoomlion, Dingli, LGMG and Terex as well as Hillhouse Capital, China Innovative Capital, CMB International and other acknowledged fi
Slide 14: Horizon Healthcare: Steady revenue growth with characteristic medical services are created
Horizon Healthcare: Steady revenue growth with characteristic medical services are created • Amid an adverse environment of frequent pandemic outbreaks, Horizon Healthcare recorded revenue of about RMB2.1 billion and maintained stable operations • In line with the State’s policy of encouraging priva
Slide 15: Condensed Balance Sheet
Condensed Balance Sheet Unit: RMB'00 million 30 June 2022 31 December 2021 Change Total assets 3,585 3,359 6.7% Interest-earning assets 2,841 2,584 9.9% Total liabilities 3,090 2,828 9.3% Total equity 495 531 -6.8% Equity attributable to ordinary shareholders 422 415 1.6% Net assets per share (RMB/s
Slide 16: Condensed Income Statement
Condensed Income Statement Unit: RMB'00 million 2022 1H 2021 1H Change Total revenue 177.2 161.8 9.5% Total pre-tax profit 45.6 42.1 8.4% Consolidated net profit 31.3 28.9 8.2% Net profit attributable to ordinary shareholders 28.4 25.7 10.5% EPS (RMB/share) 0.68 0.64 6.3% ROA 1.80% 1.83% -0.03pct RO
Slide 17: Business Analysis
Contents 1 Results Overview 2 Business Analysis 17
Slide 18: Far East Horizon: China's largest independent financial leasing & financial services group
Far East Horizon: China’s largest independent financial leasing & financial services group with in-depth operations in specific industries • Far East Horizon is the largest independent financial leasing company in China, and offers comprehensive services centering on nine major real industries for i
Slide 19: Financial Leasing
Financial Leasing
Slide 20: Financial leasing: The largest independent financial leasing service group in China
Financial leasing: The largest independent financial leasing service group in China • The Company has the most leading financial leasing business in China and offers tailor-made financial services for corporate customers. Its interest-earning assets amounted to about RMB284.1 billion, serving more t
Slide 21: Financial leasing: Steady growth in operating results across cycles
Financial leasing: Steady growth in operating results across cycles with a business model demonstrating strong vitality • From 2011 to 2021, the interest-earning assets of the Company increased to RMB258.4 billion from RMB41.8 billion, representing a CAGR of approximately 20%, with more than 20,000
Slide 22: Financial leasing: Rate of return maintained at a high level
Financial leasing: Rate of return maintained at a high level • The Company continues to optimize the structure of interest-earning assets to maintain higher net interest spread and net interest margin • With extensive experiences and knowledge in industry, the Company continuously improves customer
Slide 23: Financial leasing: Comprehensive risk management system
Financial leasing: Establishes a comprehensive risk management system to strictly ensure asset security with prudence • Through a comprehensive decision-making and balance mechanism comprising front-end monitoring and handling, middle-office process control and back-end supervision and support, the
Slide 24: Financial leasing: Long-term asset quality remains sound and stable
Financial leasing: Long-term asset quality remains sound and stable • Asset quality of the Company has remained sound and stable for a long term, and is expected to stay stable with a slight decline in the future. The provision policy is prudent in the long term • The Company’s diversified, high-qua
Slide 25: Horizon Construction Development
Horizon Construction Development
Slide 26: Horizon Construction Development: A leading equipment operation service provider in China
Horizon Construction Development: A leading equipment operation service provider in China • Horizon Construction Development is a leading equipment operation service provider in China – The equipment covers the full cycle of project construction and is suitable for numerous operating scenarios. The
Slide 27: Horizon Construction Development: Rapid growth in operating performance
Horizon Construction Development: Rapid growth in operating performance • The CAGR of its revenue and net profit from 2018 were 47% and 53% respectively • Over the years, Horizon Construction Development continues to consolidate its leading industry position, and has significant competitive advantag
Slide 28: Horizon Construction Development: Huge room for future industry development
Horizon Construction Development: Huge room for future industry development • The industry is huge, with a market value expected to exceed RMB1.6 trillion in 2026 • At the same time, the market concentration is low. As the industry leader, Horizon Construction Development has seen huge opportunities
Slide 29: Horizon Healthcare
Horizon Healthcare
Slide 30: Horizon Healthcare: A large private medical institution in China
Horizon Healthcare: A large private medical institution in China • Horizon Healthcare, a large private medical institution in China, owns 29 controlled subsidiary hospital with approximately 11,000 beds available, thus forming a nationwide hospital network covering East China, South China, North Chi
Slide 31: Horizon Healthcare: Steady growth in operating performance
Horizon Healthcare: Steady growth in operating performance • From 2016 to 2021, the CAGR for revenue, revenue per bed and net profit of Horizon Healthcare were around 35%, 14% and 20% respectively • Through integrated hospital management, Horizon Healthcare continues to enhance operational efficienc
Slide 32: Consistent and stable dividend distribution since listing
Consistent and stable dividend distribution since listing, creating excellent returns for shareholders • Since its listing, the Company has maintained a dividend payout ratio of more than 25% every year to reward shareholders with a steadily growing dividend • The ROE level remained stable, reaching
Slide 33: ESG ratings ranked in the forefront among financial enterprises in China
ESG ratings ranked in the forefront among financial enterprises in China with a focus on sustainable development • In August 2021, the ESG Committee was formally established under the Board of Directors to coordinate the continuous optimization of ESG affairs, and obtained high ratings in a number o
Slide 34: EV obviously undervalued, showing great potentials for appreciation
EV obviously undervalued, showing great potentials for appreciation • The Company has maintained a ROE of around 14% for a long period of time. The share price of the Company as at 26 August 2022 (HK$6.13) represented 0.52x 21A PB and 3.92x 21A PE, which is underestimated • The average target price
Slide 35: An excellent management team with its interests highly aligned with the Company
An excellent management team with its interests highly aligned with the interests of the Company • The management team possesses industry-leading expertise and vision, and extensive management experience and capabilities, and establishes a market-oriented incentive system • The management team membe
Slide 36: Our contact
Our contact Far East Horizon http://www.fehorizon.com/ ir@fehorizon.com Horizon Construction Development Horizon Health http://www.hongxinjianfa.com/ 36
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