HK Stock Market Move | CHINA CINDA (01359) fell more than 3%, the net profit of the company's common shareholders has decreased significantly. Institutions pointed out that performance is expected to bottom out against the backdrop of economic recovery.

China CINDA (01359) fell more than 3%, as of the publication, down 3.2% to HKD 1.21 with a turnover of HKD 35.665 million. Guosen released a research report stating that China CINDA's business includes non-performing asset management and financial services, covering non-performing asset management, banking, securities, financial leasing, and trust services. The company's disclosed data shows that the non-performing asset management division accounted for 53% of revenue in the first half of 2024, while the financial services division accounted for 48%. The bank stated that in recent years, China CINDA's total assets have remained stable at around 1.5 trillion yuan, while operating income has decreased, and net profit attributable to ordinary shareholders has significantly decreased. As of the end of the second quarter of 2024, total assets were 1.58 trillion yuan, with operating income (including the performance of affiliated companies) of 37.4 billion yuan in the first half of 2024, and net profit attributable to ordinary shareholders of 1.6 billion yuan. ROE in 2023 was 2%, estimated to decrease to around 1% in 2024. The bank continued to point out that with the backdrop of economic recovery, the company's performance is expected to stabilize. It is estimated that the net profit attributable to ordinary shareholders will be 2.4/4.0/4.7 billion yuan in 2024-2026, with year-on-year growth rates of -43%/67%/16%.