Focus on asset quality over growth
- Expect FEH to sacrifice near-term loan growth for more benign asset quality amid challenging times
- To boost shareholder returns via lifting dividends, share repurchases or further in-specie distribution of HCD
- Revised down FY23E-25F earnings by 4-11% to reflect slower loan growth
- Maintain BUY with lower TP of HK$9.5; attractive >8% dividend yield on offer
