Investment Rating - The report maintains an "Accumulate" rating for the non-bank financial industry [1] Core Views - The securities industry has seen significant profit growth, with a notable increase in trading volume and net profits for listed brokers in 2024 and Q1 2025 [4][15] - The insurance sector is experiencing a continuous increase in new business value (NBV) and a recovery in life insurance premiums as of March [4][29] - The multi-financial sector is transitioning into a stable phase, with trust assets showing growth but overall profits under pressure [4] Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Industries - All sub-industries in the non-bank financial sector underperformed compared to the CSI 300 index in the recent three trading days, with declines of 0.73% for securities, 1.06% for multi-financial, and 1.68% for insurance [9][10] 2. Non-Bank Financial Sub-Industry Insights 2.1 Securities - Trading volume has significantly increased, with April's average daily trading amount reaching 12,361 billion yuan, a 23% year-on-year increase [15] - Listed brokers reported a 7% increase in operating revenue and a 16% increase in net profit for 2024 [20] - In Q1 2025, operating revenue for listed brokers grew by 24% year-on-year, with net profit increasing by 80% [25] 2.2 Insurance - The insurance sector's net profit for Q1 2025 showed a 1.4% year-on-year increase, with significant growth in NBV for major companies [29] - Life insurance premiums showed signs of recovery, with a 0.2% year-on-year increase in original premiums for the first three months of 2025 [4] 2.3 Multi-Financial - The trust industry reported a total asset scale of 27 trillion yuan as of Q2 2024, a 24.5% year-on-year increase, although profits are under pressure [4] - The futures market saw a trading volume of 734 million contracts in March, with a 17.28% year-on-year increase [4] 3. Industry Ranking and Key Company Recommendations - The non-bank financial sector is currently valued at a low average, providing a safety margin [4] - The insurance industry is expected to benefit from economic recovery and rising interest rates, with a focus on health and pension insurance [4] - Recommended companies include China Life, China Pacific Insurance, China People’s Insurance, and leading securities firms like CITIC Securities and Huatai Securities [4][28]

Investment Rating - The report maintains an "Accumulate" rating for the non-bank financial industry [1] Core Viewpoints - The non-bank financial sector has shown strong performance recently, with all sub-sectors outperforming the CSI 300 index over the last five trading days [3][8] - The securities industry has seen a significant increase in trading volume, with April's average daily trading amount reaching 14,525 billion yuan, a year-on-year increase of 44.59% [13] - The insurance sector is facing stricter regulations on universal insurance, but there are signs of recovery in life insurance premiums [26][30] - The multi-financial sector is transitioning to a stable growth phase, with trust assets showing a notable increase, while the futures market continues to maintain high transaction volumes [34][40] Summary by Sections 1. Recent Performance of Non-Bank Financial Sub-Sectors - All non-bank financial sub-sectors outperformed the CSI 300 index in the recent five trading days, with the insurance sector rising by 1.31% and the overall non-bank financial sector increasing by 1.02% [3][8] 2. Non-Bank Financial Sub-Sector Insights 2.1 Securities - Trading volume has significantly increased, with April's average daily trading amount at 14,525 billion yuan, up 44.59% year-on-year [13] - The net profit of 19 listed securities firms in Q1 2025 increased by 43.6% year-on-year, totaling 74.2 billion yuan [17] - The average price-to-book (PB) ratio for the securities industry is projected to be 1.2x for 2025E, indicating potential for growth [23] 2.2 Insurance - The China Banking and Insurance Regulatory Commission has implemented stricter regulations on universal insurance, which may impact new business but not existing policies [26] - Life insurance premiums showed a slight recovery in March, with total premiums reaching 17,878 billion yuan, a year-on-year increase of 0.2% [30] - The insurance sector's valuation is currently at historical lows, with a projected P/EV of 0.50-0.81 for 2025E [32] 2.3 Multi-Financial - The trust industry is entering a stable transition phase, with total trust assets reaching 27 trillion yuan, a year-on-year increase of 24.5% [34] - The futures market saw a transaction volume of 7.34 billion contracts in March 2025, with a transaction value of 61.59 trillion yuan, reflecting a year-on-year growth of 17.28% [40] 3. Industry Ranking and Key Company Recommendations - The recommended ranking for the non-bank financial sector is insurance > securities > other multi-financial services, with key companies including New China Life Insurance, China Pacific Insurance, China Life Insurance, and CITIC Securities [52]