Ge Long Hui·2026-03-21 15:21Core Viewpoint - The company maintains a "Buy" rating with a target price of HKD 102.76, supported by a projected P/EV of 1.65x for 2026, despite a decline in net profit for 2025 [1] Group 1: Financial Performance - The company's net profit attributable to shareholders for 2025 is USD 6.234 billion, reflecting a year-on-year decrease of 8.8% (actual exchange rate) / 9% (fixed exchange rate) [1] - The net book value (NBV) increased by 15% (fixed exchange rate) / 17.1% (actual exchange rate) year-on-year [2] - The after-tax operating profit for 2025 is USD 7.136 billion, showing a year-on-year growth of 8.0% (actual exchange rate) / 7% (fixed exchange rate) [1] Group 2: Shareholder Returns - The company has announced a new share buyback plan of USD 1.7 billion for 2026, in addition to a dividend payout of USD 2.596 billion, representing 75% of the free surplus of USD 4.451 billion for 2025 [3] - The total return to shareholders for 2025 amounts to USD 4.339 billion [3] Group 3: Business Growth Drivers - The NBV for 2025 shows a robust growth of 15% (fixed exchange rate) / 17.1% (actual exchange rate), driven by a 9% (fixed exchange rate) / 10.2% (actual exchange rate) increase in annualized new business [2] - In Hong Kong, the new business value increased by 28% in 2025, with contributions from local customers growing by 21% and mainland visitors by 35% [2] - In China, the new business value grew by 2% in 2025, with a significant acceleration in the second half, where it increased by 14% [2]