Core Viewpoint - Bank of America Securities reports that due to a high base formed by a surge in investment income for China Property & Casualty Insurance (02328) in Q3 2024, it expects a slowdown in performance for Q3 2025, although no major disaster events occurred this quarter, leading to improved underwriting profits [1] Financial Performance - The mid-term net profit of the company reached 24.5 billion RMB, representing a year-on-year increase of 32%, primarily driven by a significant 45% growth in underwriting profits and a 60% increase in investment income during the same period [1] - The company's core business remains stable, with premium income growing by 4% year-on-year, and the combined cost ratio improved from 96.2% in the same period of 2024 to 94.8% [1] Dividend and Valuation - The company announced an interim dividend of 0.24 RMB per share, a year-on-year increase of 15% [1] - Based on an upward adjustment in investment return rates and a lower combined cost ratio, profit forecasts for 2025 to 2027 have been raised by 7% to 8%, with the target price increased by 9% from 16.9 HKD to 18.4 HKD, reflecting an expected rise in ROE [1] - The company maintains a neutral rating, as the current stock price corresponds to a forecasted price-to-book ratio of 1.4 times for 2025, indicating that while mid-term performance is stable, the valuation appears high [1]
美银证券：升中国财险目标价至18.4港元 中期业绩稳健但估值偏高