Changjiang Securities·2025-11-06 13:42Investment Rating - The report maintains a "Positive" investment rating for the non-bank financial sector [2] Core Insights - The "slow bull" market continues to validate the sector's revaluation, with significant growth in insurance, securities, and financial IT sectors, indicating a favorable investment environment [7][9] Summary by Sections Insurance - The insurance sector showed significant growth in Q3 2025, with net profit reaching CNY 4,260 million, a 33.5% increase year-on-year. New premium income also rose to CNY 6,002 million, up 14.9% [15] - The traditional perception of insurance investment being limited to dividends has been challenged, as high returns were achieved despite a growth-oriented equity market [9][14] - The sector's profitability is expected to improve in the medium to long term, driven by enhanced return on equity (ROE) and a focus on high-quality companies such as Xinhua Insurance and China Life [9][35] Securities - The securities sector experienced robust performance in Q3 2025, with total revenue reaching CNY 4,196.08 million, a 16.9% increase year-on-year, and net profit of CNY 1,684.50 million, up 62.8% [44] - The growth in brokerage and proprietary trading businesses was significant, with brokerage income increasing by 74.3% [58] - The report highlights the importance of focusing on leading firms with quick recovery in profitability and attractive valuations, as the industry is expected to see continued concentration [9][39] Financial IT - Financial IT companies demonstrated high profit elasticity in Q3 2025, benefiting from a strong market environment, particularly in trading-related services [9][10] - The report suggests that companies with growth logic in market share may enjoy valuation premiums in the long term [9][10] Investment Recommendations - The report recommends a balanced allocation within the non-bank financial sector, emphasizing high-elasticity companies and quality leaders. Specific recommendations include Xinhua Insurance, China Life, and China Pacific Insurance in the insurance sector, and Jiufang Zhitu, Tonghuashun, and CICC in the securities and financial IT sectors [9][35]