Long-term outlook remains intact
- 1H22 earnings grew 10% y-o-y to Rmb2,842m, in line with expectations, supported by strong NII growth
- Asset quality remained benign, with NPA ratio flattest h-o-h at 1.06% and special-mention loan ratio improving to 7.44%, down 65bps h-o-h
- Positive outlook on Horizon Construction remains intact, while margin contraction in Horizon Healthcare is considered temporary
- Revise down earnings by 5%-8% in FY22-23F. Rolling over valuation base to FY23F and lower TP to HK$12.2. Reiterate BUY
