Far East Horizon Limited · HKEX:3360
Far East Horizon — Investor Presentation (March 2022)
35 slides from Far East Horizon's investor presentation, March 2022
Slide 1: Investor Presentation Far East Horizon Limited
Investor Presentation Far East Horizon Limited March 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 in this report is as of 31 December 2021 3
Slide 4: Rapid growth in earnings
Rapid growth in earnings • In the financial year of 2021, the Company's revenue and net profit attributable to ordinary shareholders were approximately RMB33.6 billion and RMB5.5 billion, representing a year-on-year increase of 16% and 20% respectively • The rapid growth was mainly attributable to (
Slide 5: Steady improvement in profitability metrics
Steady improvement in profitability metrics • Annualized ROA and annualized ROE of the company was approximately 1.96% and 14.57% respectively, which grew steadily as compared to 2020 • The company’s EPS amounted to RMB1.36 per share, representing a year-on-year increase of approximately 13%; net as
Slide 6: Continued optimization of revenue structure
Continued optimization of revenue structure • Adhering to the operational strategy of “finance + industry”, the Company continuously optimized its revenue structure. The contribution of revenue from industrial operation segments has increased steadily • Higher percentage of revenue from industrial o
Slide 7: Financial leasing: Business scale continues to grow steadily
Financial leasing: Business scale continues to grow steadily • The interest-earning asset increased to over RMB258.4 billion. A revenue of over RMB19.2 billion has been realized, representing a year-on-year increase of over 16% • Mainly benefited from the continuous development in industrial fields
Slide 8: Financial leasing: Asset quality remains healthy
Financial leasing: Asset quality remains healthy • The NPL remained steady and slightly dropped to 1.06%; the proportion of interest-earning assets overdue for more than 30 days (“30+ Rate”) continuously declined to 0.94%, reflecting the strict risk control system and strong asset management capabil
Slide 9: Financial leasing: Net rate of return maintains steady growth
Financial leasing: Net rate of return maintains steady growth • The NIS of the Company was 3.21%, representing a year-on-year increase of 0.36 percentage point; the NIM was 4.06%, representing a year-on-year increase of 0.23 percentage point • The increase was mainly attributable to the fact that (1
Slide 10: 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 matching of asset/liability maturity has been prudently managed to ensure liquidity safety and capital utilization efficiency Matching of asset and liabilities (RMB'00 millio
Slide 11: Horizon Construction Development: Rapid growth continues
Horizon Construction Development: Rapid growth continues • Rapid growth was realized in 2021 with revenue and net profit of over RMB6.1 billion and over RMB700 million, representing a year-on-year increase of approximately 68% and 44% respectively • The position as industry pioneer has been consolid
Slide 12: 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, LGMG, Dingli and Terex as well as Hillhouse Capital, China Innovative Capital, CMB International and other acknowledged fi
Slide 13: Horizon Healthcare: Revenue increases steadily, business model echoing state policies
Horizon Healthcare: Revenue increases steadily, business model echoing state policies • Revenue and net profit amounted to over RMB4.0 billion and over RMB140 million, representing a year- on-year increase of over 16% and 24% respectively • In line with state’s policy of encouraging private medical
Slide 14: Value returns for shareholders with stable and transparent dividend policy
Value returns for shareholders with stable and transparent dividend policy • The Company plans to pay a dividend of HK$0.42 per share to maintain a stable payout ratio for shareholders • The dividend policy remains stable and transparent in a long term. The dividend payout ratio is 25% Dividend per
Slide 15: Condensed Balance Sheet
Condensed Balance Sheet Unit: RMB'00 million 31 Dec 2021 31 Dec 2020 Change Total assets 3,359 2,999 12.0% Interest-earning assets 2,584 2,354 9.8% Total liabilities 2,828 2,547 11.0% Total equity 531 453 17.2% Equity attributable to ordinary 341 21.7% 415 shareholders Net assets per share 8.58 12.2
Slide 16: Condensed Income Statement
Condensed Income Statement Unit: RMB'00 million 2021 2020 Change Total revenue 336.4 290.4 15.9% Total Pre-provision operation 131.4 112.5 16.8% profit Consolidated net profit 62.3 50.3 23.9% Net profit attributable to 55.1 45.8 20.3% ordinary shareholders EPS (RMB/share) 1.36 1.20 13.3% ROA 1.96% 1
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 nine major real industries for its
Slide 19: Financial Leasing
Financial Leasing 19
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 exceed RMB258.4 billion, serving more than 20,000
Slide 21: Financial leasing: Scored long-term and steady growth
Financial leasing: Scored long-term and steady growth • From 2011 to 2021, the interest-earning assets of the Company increased to RMB258.4 billion from RMB41.8 billion, while the revenue increased to RMB33.6billion from RMB4.2 billion, representing a CAGR of over 20% and 23% respectively • As the l
Slide 22: Financial leasing: Rate of return maintained at a high level
Financial leasing: Rate of return maintained at a high level • The Company has been continuously optimizing the structure of interest-earning assets to maintain higher net interest spread and net interest margin • With rich experiences and knowledge in industry, the Company continuously improves cus
Slide 23: Financial leasing: Implements prudent management and strict risk control
Financial leasing: Implements prudent management and strict risk control to ensure asset security • Adhering to prudent management policies, the Company has established strict risk control system and conducted due diligent investigation and screening on leased projects, so as to ensure asset securit
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. Meanwhile, the Company has adopted prudent accounting policy on provision, thus realizing higher profit level • The Company has maintained NPL at a relati
Slide 25: Horizon Construction Development
Horizon Construction Development
Slide 26: Horizon Construction Development: Leading equipment operation service platform
Horizon Construction Development: Leading equipment operation service platform with the strong comprehensive capabilities in China • Horizon Construction Development is the largest comprehensive operation service provider of construction equipment in China – The equipment covers the full cycle of pr
Slide 27: Horizon Construction Development: Rapid growth in operating performance
Horizon Construction Development: Rapid growth in operating performance • The CAGR of revenue and net profit from 2018 to 2021 was 47% and 53% respectively • As the industry leader, the Company has significant competitive advantages in terms of equipment in use, network coverage and operating effici
Slide 28: Horizon Construction Development: Huge room for future industry development
Horizon Construction Development: Huge room for future industry development • The equipment leasing industry is huge in China, with market value expected to exceed RMB1.5 trillion in 2025 • At the same time, the concentration of equipment leasing industry in China is low. As the industry leader, Hor
Slide 29: Horizon Healthcare
Horizon Healthcare
Slide 30: Horizon Healthcare: A large medical institution funded by social capital in China
Horizon Healthcare: A large medical institution funded by social capital in China • Horizon Healthcare, a large medical institution funded by social capital in China, owns 29 controlled subsidiary hospital with approximately 11,000 beds available, thus forming a nationwide hospital networking coveri
Slide 31: Horizon Healthcare: Maintained rapid growth in operating performance
Horizon Healthcare: Maintained rapid growth in operating performance • From 2016 to 2021, the CAGR for revenue, revenue per bed and net profit of Horizon Healthcare was around 35%, 14% and 20% respectively • Through integrated management of internal hospitals, Horizon Healthcare continued to enhance
Slide 32: Experienced management team with interests highly aligned with the Company
Experienced management team with interests highly aligned with the Company • The management team possesses the expertise and vision as management of a state-owned enterprise. A market-orientated incentive system for corporate governance has been established • The management team are substantial shar
Slide 33: Creating long-term, successive and cross-cycle promising returns for shareholders
Creating long-term, successive and cross-cycle promising returns for shareholders • Over the past decade, Far East Horizon achieved more than 5 times growth in net profit for the period attributable to holders of ordinary shares, with CAGR of around 18% and average ROE of over 14.4%. The business ca
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 15 March 2022 (HK$5.87) represented 0.50x 21A PB and 3.52x 21A PE, which is underestimated • The average target price s
Slide 35: Our contact
Our contact Far East Horizon http://www.fehorizon.com/ ir@fehorizon.com Horizon Construction Development Horizon Health http://www.hongxinjianfa.com/ 35
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