Ge Long Hui·2025-08-23 12:00Core Viewpoint - The company maintains a "Buy" rating with a target price of HKD 89.80 per share, reflecting a 1.7x P/EV for 2025, supported by stable growth in NBV and EV, and an expected improvement in shareholder returns [1] Group 1: Financial Performance - In H1 2025, the company achieved a net profit attributable to shareholders of USD 2.534 billion, a decrease of 24% year-on-year; however, the after-tax operating profit was USD 3.609 billion, representing a 6% increase [1] - The embedded value (EV) stood at USD 70.853 billion, up 2.6% from the end of the previous year, with a 4.2% contribution from new business value growth and a 4.2% contribution from stable expected returns [1] - The interim dividend for 2025 was set at HKD 0.49 per share, reflecting a 10% year-on-year increase [1] Group 2: New Business Value (NBV) Growth - The company reported a 14% year-on-year increase in NBV for H1 2025, with annualized new premiums rising by 8% and the value ratio improving by 3.4 percentage points to 57.7% [2] - In Hong Kong, NBV grew by 24%, driven by a 35% increase in agent channel NBV due to a 9% growth in active agents and a 30% increase in productivity [2] - In mainland China, NBV decreased by 4%, but if excluding the impact of economic assumptions, it would have increased by 10% [2] Group 3: Shareholder Returns - The operating profit after tax (OPAT) grew steadily, with a 6% increase in H1 2025, primarily due to stable CSM release and positive contributions from operational differences and risk adjustments [3] - The diluted after-tax operating profit per share was USD 0.3391, a 12% increase year-on-year, with the return on equity for shareholders rising by 0.9 percentage points to 16.2% [3] - The company completed a USD 1.6 billion share buyback on July 14, 2025, and returned USD 3.71 billion to shareholders through dividends and buybacks in H1 2025, with free surplus at USD 9.898 billion [3]