Xin Lang Cai Jing·2025-10-31 00:30Core Viewpoint - Xinhua Insurance reported strong performance for 9M25, with net profit reaching 32.9 billion, a year-on-year increase of 58.9%, closely aligning with the upper limit of the earnings forecast [1] Group 1: Financial Performance - The company's net profit for 9M25 was 32.9 billion, marking a year-on-year increase of 58.9%, with Q3 25 alone contributing 18.06 billion, a year-on-year increase of 88.2%, both figures being historical highs [1] - Investment income significantly contributed to the net profit, totaling 40.4 billion, a year-on-year increase of 687%, while fair value changes resulted in a loss of 34.3 billion, a year-on-year decrease of 18.2% [1] - The annualized total and comprehensive investment return rates were 8.6% and 6.7%, respectively, with year-on-year changes of +1.8 percentage points and -1.4 percentage points [1] Group 2: Premium Growth and Product Structure - The company's premium income for 9M25 was 34.9 billion, reflecting a year-on-year increase of 41%, with long-term premium income (10 years and above) in Q3 25 growing by 20.9% [2] - Individual insurance and bank insurance premium income were 17.87 billion and 16.83 billion, respectively, with year-on-year increases of 49.2% and 32.9% [2] - The company's new business value (NBV) increased by 50.8% year-on-year, although the growth rate slightly declined from 58.4% in 1H25 due to a high base effect from the previous year [2] Group 3: Asset and Solvency Position - The company's net assets reached 100.5 billion, an increase of 4.4% from the beginning of the year, with a quarter-on-quarter increase of 20.5% [3] - The core and comprehensive solvency adequacy ratios were 154.3% and 234.2%, respectively, both showing declines of 16.5 percentage points and 21.9 percentage points compared to the end of the previous year [3] - The increase in net assets is attributed to the release of insurance contract liabilities due to rising interest rates, with expectations for continued growth in net assets [3] Group 4: Investment Outlook - The company maintains a strong buy recommendation, supported by rapid growth in NBV and premiums, along with record highs in profit and return on equity (ROE) [3] - Forecasted net profits for 2025-2027 are 38.1 billion, 41.7 billion, and 44.6 billion, with growth rates of +45.1%, +9.6%, and +7.0% respectively [3] - The projected NBV for the same period is 9.83 billion, 10.9 billion, and 11.9 billion, with growth rates of +57.2%, +10.8%, and +9.2% respectively, indicating a favorable valuation with P/EV multiples of 0.74, 0.66, and 0.60 [3]