Core Viewpoint - The report from First Shanghai recommends a "buy" rating for China Pacific Insurance (02328) with a target price of HKD 23.3, indicating a potential upside of 21.7% from the current price, driven by the growth in non-auto insurance as a key engine for premium growth in the context of China's economic transformation [1] Group 1: Financial Performance - In the first three quarters of 2025, the company achieved insurance service revenue of CNY 385.9 billion, a year-on-year increase of 5.9%, with auto insurance revenue at CNY 227.6 billion (up 3.7%) and non-auto insurance revenue at CNY 158.3 billion (up 9.3%) [1] - The net profit for the same period reached CNY 40.3 billion, reflecting a significant year-on-year growth of 50.5% [1] - Total investment income for the first three quarters was CNY 35.9 billion, a 33% increase year-on-year, with an annualized total investment return rate of 5.4%, up 0.8 percentage points from the previous year [1] Group 2: Non-Auto Insurance Growth - Non-auto insurance original premium income reached CNY 223.06 billion, accounting for 50.3% of total premiums, surpassing auto insurance [2] - A new regulatory policy effective November 1, 2025, aims to manage rates in the non-auto insurance sector, which is expected to enhance underwriting profit margins and improve the comprehensive cost ratio for non-auto insurance [2] - The company targets a comprehensive cost ratio of under 96% for auto insurance and under 99% for non-auto insurance in 2025 [2] Group 3: Internationalization Strategy - The company has initiated an internationalization strategy aimed at significantly increasing overseas business within five years, aligning with the trend of Chinese enterprises expanding abroad and the internationalization of the RMB [3] - The strategy focuses on servicing Chinese products and enterprises, particularly in the areas of new energy vehicles and overseas infrastructure projects [3] - The company has successfully launched related businesses in Hong Kong and Thailand, with plans to expand into Europe and Southeast Asia, leveraging its experience in new energy vehicle insurance to create a competitive advantage [3]
第一上海：予中国财险“买入”评级 目标价23.3港元