NCI(SH:601336) Haitong Securities·2024-11-04 08:45Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company reported a significant increase in net profit, with a year-on-year growth of 116.7% for the first three quarters, amounting to 20.7 billion yuan, and a net profit of 9.6 billion yuan for Q3 alone, compared to a loss of 440 million yuan in the same period last year [3] - The increase in investment income is attributed to the rise in the capital market, with the company having a higher proportion of equity assets compared to its peers, leading to a 19.4% increase in total investment assets to 1.6067 trillion yuan [5] - The company is expected to maintain its strategic direction and enhance its core competitiveness through reforms focused on customer-centricity, product competitiveness, and technological empowerment [5] Summary by Sections Financial Performance - The company achieved a net profit of 20.7 billion yuan in the first three quarters, with a Q3 net profit of 9.6 billion yuan, marking a significant recovery from the previous year's loss [3] - The weighted ROE increased to 21.0%, up by 12.5 percentage points year-on-year [3] - The net asset value was reported at 91 billion yuan, showing a decrease of 13.4% from the beginning of the year but a slight increase of 1.1% from mid-year [3] Insurance Business - The new business value (NBV) increased by 79.2% year-on-year in the first three quarters, with a notable 195.4% increase in Q3 [4] - The company is focusing on enhancing individual insurance channels and promoting regular premium products, with significant growth in first-year premiums for long-term insurance [4] Investment Performance - The annualized total investment return rate reached 6.8%, an increase of 4.5 percentage points year-on-year, while the annualized comprehensive investment return rate was 8.1%, up by 5.1 percentage points [5] - The company maintains a low valuation, with a projected price-to-embedded value (PEV) ratio of 0.65-0.7 for 2024, indicating a reasonable value range of 55.42-59.68 yuan per share [5] Market Comparison - The company's stock has outperformed the market indices, with an absolute increase of 2.9% over one month, 44.5% over two months, and 60.2% over three months [1]