Jingu Financial News | Haitong Securities issued research reports, stating that PICC P&C (02328) released its performance for the third quarter of 2024: 1) Achieved net income of 26.8 billion yuan in the first three quarters, +38.0% year-on-year; Q3 single-quarter net income was 9.3 billion yuan, a year-on-year increase of 59.7 times, mainly driven by substantial growth in investment income. 2) Net assets at the end of Q3 were 253.1 billion yuan, up 9.9% from the beginning of the year. The bank pointed out that total premiums have shown steady growth, with the growth rate of non-auto insurance still higher than that of auto insurance. Due to factors such as major disasters, non-auto insurance underwriting losses were significant in the third quarter. Due to the recovery of the capital markets and the company's timely increase in the allocation of secondary equity, investment income has significantly improved.

PICC P&C's auto insurance business has good quality, with a high proportion of low claim ratios in the personal auto insurance business and controllable channel fees. Therefore, the bank believes that the company's profit potential far exceeds that of small and medium-sized insurance companies. Its competitive advantage in the second half of the auto insurance comprehensive reform will become more prominent. The current stock price of the company corresponds to 2024 EPB 0.98 times, at a low valuation level. Referring to the valuation of comparable companies, the bank gives a 1.1-1.2 times 2024 EPB, corresponding to a reasonable price range of RMB 12.57-13.72, based on an exchange rate of RMB:HKD=1:1.0902, equivalent to a reasonable price range of HKD 13.71-14.95, maintaining an "outperform the market" rating.