远东地平线(3360.HK)要点：预计2026财年股息稳定且有望增长，股息收益率将超10%

Far East Horizon (3360.HK) Takeaways: FY26E DPS Stable with Upside, Translating into >10% DivYield CITI’S TAKEWe hosted Far East Horizon (“FEH”) at Citi 2026 Financial and Property Buy Conference, and we provide our key takeaways as below. Price (24 Jun 26 16:10)HK$5.16Target priceHK$8.60Expected share price return66.7%Expected dividend yield10.5%Expected total return77.1%Market CapHK$24,856M 1H26E earnings likely to see modest growth; Full-year DPS at least stable withpotential upside –Mgmt expected to deliver modest earnings growth in 1H26E, withfull-year DPS at lease stable with some potential upsides. Overall, the operating trendyear to date has been similar to that in 1Q26 and FY25. Mgmt attributed the recentshare price weakness mainly to fund flow movement rather than any change in Michelle Ma, CFAAC+852-2501-2723michelle.ma@citi.comAmy Jy Chenamy.jy.chen@citi.com Finance lease business resilient with inclusive business on track –Mgmt expectedfinance lease business to likely deliver modest increase in revenue and net profit in1H26E, driven by slight expansion of interest-earning asset scale and modest NIMexpansion. Mgmt noted that there were some decelerations in loan growth in public-oriented sectors such as healthcare and constructions, while private sectors andinclusive finance business have been tracking decent growth momentum. Mgmtshared that its inclusive finance lease business would reach a scale of over Rmb30bn Equipment operations and hospital operations remain stable –Mgmt expectedequipment operations to remain stable in 1H26E, as overseas business growth couldbroadly offset the pressure from intense market competition onshore. As to hospital Far East Horizon ValuationWe derive our target price of HK$8.6 for Far East Horizon by using a three-stage model to impute a fair P/B. Key model assumptions include a discount rate of 9.8%, first-stage growth of 3.3%, second-stage growth of 4.0%, and terminal growth of4.0%. Using the implied 2026E fair Price/Book multiple of 0.68x results in a target price of HK$8.6. Risks Key downside risks that could impede Far East Horizon’s share price from achieving our target price include a macro hard-landing in China, steep deterioration in asset quality and credit cost, insufficient room for leveraging up, regulatory tighteningon industry operations and changes in monetary policies. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside the Appendix A-1 ANALYST CERTIFICATIONThe research analysts primarily responsible for the preparation and content of this research report are either (i) designated by “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the report IMPORTANT DISCLOSURES Citigroup Global Markets Inc. or its affiliates received compensation for products and services other than investment bankingservices from Far East Horizon in the past 12 months. Citigroup Global Markets Inc. or its affiliates currently has, or had within the past 12 months, the following as clients, and theservices provided were non-investment-banking, non-securities-related: Far East Horizon. Analysts’ compensation is determined by Citi Research management and Citigroup’s senior management and is based uponactivities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates (the “Firm”).Compensation is not linked to specific transactions or recommendations. Like all Firm employees, analysts receivecompensation that is impacted by overall Firm profitability which includes investment banking, sales and trading, and For financial instruments recommended in the Product in which the Firm is not a market maker, the Firm is a liquidity providerin such financial instruments (and any underlying instruments) and may act as principal in connection with transactions insuch instruments. The Firm is a regular issuer of traded financial instruments linked to securities that may have been Unless stated otherwise neither the Research Analyst nor any member of their team has viewed the material operations of theCompanies for which an investment view has been provided within the past 12 months. Attention: Legal/Compliance [E6WYB6412478]. In addition, the same important disclosures, with the exception of theValuation and Risk assessments and historical