Glonghui, May 7 | Jefferies published a research report showing that the net profit of financial insurance for the first quarter was 5.9 billion yuan, down 38% from year to year and up 13% from quarter to quarter, clearly falling short of market expectations. The company was affected by bad weather during the Lunar New Year, and the composite ratio (CoR) increased 2.2 percentage points year-on-year to 97.9%. In addition, investment income increased by 5% quarterly, but decreased by 36% year-on-year, which also dragged down profit growth. The bank said that the Group's profit for the first quarter was lower than expected, largely due to the fact that investment performance was far weaker than expected. Additionally, in the face of recent profit fluctuations, management has reaffirmed its commitment to shareholder returns. The bank expected a negative reaction to the company's stock price due to the latest results, but continued its “buy” rating, with a target price of HK$11.