Soochow Securities·2025-06-26 11:42Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has initiated an H-share placement to enhance its capital and support innovation in the fintech sector, marking its first equity financing since listing [7] - The placement involves 215 million H-shares, expected to raise nearly HKD 4 billion, with a placement price of HKD 18.25 per share, representing an 8.5% discount to the closing price on June 25 [7] - The company's core business in property and casualty insurance shows positive trends, with a 12.3% year-on-year growth in premiums for the first five months of 2025, outperforming the industry [7] - The company is actively involved in the stablecoin business in Hong Kong, holding approximately 20% equity in a stablecoin technology firm, which is beneficial for long-term performance growth [7] - The low base effect from 2024 is expected to lead to significant profit growth in the first half of 2025, supported by the recent equity financing [7] - The report forecasts substantial growth in net profit for 2025-2027, with projected net assets of RMB 229 billion, RMB 243 billion, and RMB 261 billion respectively, and a corresponding price-to-book (P/B) ratio of 1.09, 1.03, and 0.96 [7] Financial Summary - Total revenue is projected to grow from RMB 27,535 million in 2023 to RMB 48,506 million by 2027, with a compound annual growth rate (CAGR) of approximately 14.82% [1] - The net profit attributable to shareholders is expected to recover from a loss in 2024 to RMB 1,574 million by 2027, reflecting a significant turnaround [1] - The company's book value per share is anticipated to increase from RMB 13.66 in 2023 to RMB 17.78 in 2027 [1] - The current market capitalization is approximately HKD 25,848 million, with a price-to-book ratio of 1.28 [5]