AGM Latest Report

Financial Performance

As of December 31, 2024, the operating total revenue of Federal Agricultural Mortgage (AGM) was RMB101256000, up 19.03% from RMB84949000 as of December 31, 2023. This significant growth reflects the company's improvement in operating revenue, possibly due to increased market demand, optimized product mix, and changes in the interest rate environment.

Key Financial Data

1. Operating total revenue: RMB101256000 in 2024, up 19.03% from RMB84949000 in 2023.

2. Financing income in credit-driven services grew 27% YoY to RMB174000000, mainly due to the growth in on-balance sheet balances from the company's issuance of asset-backed securities.

3. Referral service fees in platform services grew 226% YoY to RMB76300000, as the company's ICE business expanded.

4. Adjusted net profit in 2024 was RMB182500000, up 55% YoY.

5. The company's financing costs continued to decline, and risk indicators improved (first-day delinquency rate reduced to 4.6%).

Peer Comparison

1. Industry-wide analysis: The agricultural loan industry as a whole benefits from the recovery of agricultural production and policy support, especially under improved climate conditions and rising crop prices, driving revenue growth. According to quarterly reports, the balance of agricultural loans reached RMB5.113 trillion, up 10.8% YoY, indicating strong market demand.

2. Peer evaluation analysis: AGM's YoY growth rate of operating total revenue is 19.03%, while the industry average growth rate is around 15%, indicating that AGM has a certain advantage in the market competition and shows its growth potential better than the industry.

Summary

Through the financial analysis of AGM, the significant growth in operating revenue is mainly attributed to the improvement in market demand, optimized product mix, and interest rate environment. The company's credit services and platform services both achieved significant growth, fully demonstrating its competitiveness in the agricultural loan market.

Opportunities

1. With the growth of agricultural technology loans and rural circulation system construction loans, AGM can further expand its market share.

2. The strong growth in agricultural loan market demand and government policy support provide AGM with good development opportunities.

3. The company can leverage its declining financing costs and improved risk indicators to enhance profitability and market confidence.

Risks

1. Uncertainty in the macroeconomic environment may affect agricultural loan demand, especially during economic recessions.

2. Fluctuations in agricultural product prices may directly affect the operating conditions of agricultural enterprises and thus affect loan demand.

3. Changes in climate and severe weather may affect crop yields and thus affect loan demand.

Through the above analysis, AGM is expected to continue benefiting from the industry's favorable development trend in the future, but it needs to pay attention to the potential impact of changes in the external economic environment on its business.