SINOLINK SECURITIES·2025-06-25 09:25Investment Rating - The report maintains a "Buy" rating for the company, suggesting a potential upside of over 15% in the next 6-12 months [5]. Core Insights - The company is experiencing a significant transformation towards dividend insurance, with a strong intent and notable results. The proportion of dividend insurance in individual and bank insurance channels reached 98.9% and 88.6% respectively in the first two months, indicating a first-mover advantage in this trend [4]. - The company is expected to achieve double-digit profit growth despite a high base, with a projected net profit of HKD 30 billion in Q1 2025, reflecting an 87% year-on-year increase due to reduced income tax [4]. - The company's low valuation metrics include a PEV of 0.29X and a PB of 0.78X, indicating potential investment opportunities [5]. Financial Performance Summary - Insurance service revenue is projected to grow from HKD 107,489 million in 2023 to HKD 122,456 million by 2027, with a growth rate stabilizing around 3% [10]. - The net profit attributable to shareholders is expected to increase from HKD 6,190 million in 2023 to HKD 13,596 million by 2027, with a growth rate peaking at 44.05% in 2023 and gradually declining to 10.16% by 2027 [10]. - The company's return on equity (ROE) is forecasted to rise from 6.92% in 2023 to 14.71% in 2027, indicating improving profitability [10].