Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Viewpoints - The report indicates that low valuations are expected to provide anti-drawdown characteristics, with a focus on performance and style switching catalysts [4] - The insurance and brokerage sectors continue to adjust due to geopolitical conflicts, but the medium-term logic remains unchanged, with positive trends in non-bank business and asset sides driven by deposit migration and a slow bull market [4] - The report highlights that the valuation of five A-share insurance companies has dropped to a low of 0.73 times P/EV, while leading brokerages have PB and PE valuations at historical lows, suggesting potential for anti-drawdown characteristics and left-side opportunities [4] Summary by Sections Brokerage - The average daily trading volume of stock-based funds is 2.74 trillion, down 10% week-on-week; however, the cumulative average daily trading volume for the year is 3.22 billion, up 85% year-on-year [5] - Six brokerages have initiated consolidated regulatory reporting, with a deadline for submitting 2025 annual reports by April 30, 2026 [5] - The report recommends the brokerage sector, focusing on low-valuation firms with high wealth management contributions, such as Huatai Securities and GF Securities, as well as leading brokerages like Guotai Junan and CITIC Securities [5] Insurance - Sunshine Insurance reported a total premium income of 150.72 billion, up 17.4% year-on-year, with a net profit of 6.31 billion, up 15.7% [6] - The self-pricing coefficient for new energy vehicle insurance has been optimized, which is expected to benefit market pricing and the development of new energy vehicle insurance business [6] - The report recommends China Pacific Insurance, China Life H shares, and Ping An, highlighting the high growth potential in the liability side due to deposit migration [6] Recommended and Beneficiary Stocks - Recommended stock combination includes Huatai Securities, Guotai Junan, China Pacific Insurance, Tonghuashun, China Life, Ping An, GF Securities, CITIC Securities, and others [7]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights that the brokerage sector has shown significant year-on-year growth in Q1 performance, driven by increased trading volumes, while the insurance sector's investment performance has shown divergence [4] - The report recommends undervalued traditional brokerages with retail advantages and highlights the positive outlook for the brokerage sector due to macroeconomic stability measures [4][5] Summary by Relevant Sections Industry Performance - The average daily trading volume for equity funds is 1.30 trillion, with a week-on-week decrease of 5.5% [4] - The net profit of 39 listed brokerages for 2024 is projected to be 144.8 billion, representing a year-on-year increase of 16% [4] - The net profit for Q1 2025 for these brokerages is 42.8 billion, showing a year-on-year increase of 53% [4] Insurance Sector Insights - The net profit growth rates for five listed insurance companies in Q1 2025 are as follows: China Pacific Insurance +4.3%, China Life +4.0%, New China Life +1.9%, China Taiping -1.8%, and Ping An -2.6% [5] - The overall net profit for these five companies in Q1 2025 is 84.2 billion, reflecting a year-on-year increase of 1.4% [5] - The report notes that the investment performance of the insurance sector is under pressure, leading to divergence in profit growth rates [5] Recommended Stocks - Recommended stocks include Jiangsu Jinzhong, China Pacific Insurance, Hong Kong Exchanges, and several brokerages such as Dongfang Securities and China Life [6] - Beneficiary stocks include Guosen Securities, Jiufang Zhitu Holdings, and others [6]