Recently, the trading in the Hong Kong and A-share markets has been hot and active, especially in the mainstream insurance and logistics sectors, where most stocks have shown remarkable performance.

A typical case worth mentioning is the diversified comprehensive business group listed in Hong Kong - NWS Holdings (00659.HK). As a Hong Kong company operating in both of these two major areas, not only has it demonstrated outstanding performance in the latest period announced, but it also has the potential for continued growth benefiting from a series of favorable policies stimulating the economy and the stock market initiated by the Mainland government, which should not be underestimated.

In early October 2024, the stock price of NWS Holdings once broke through the high formed at the end of February 2020, setting a new high in nearly four years. In the secondary market of the Hong Kong Stock Exchange, according to Bloomberg data, the closing price of the group as of October 18 was HK$7.80 per share, with a total return of about 38% since the beginning of the year, indicating the gradual accumulation of positive market sentiment towards the company.

NWS Holdings announced its annual performance as of June 30, 2024, at the end of September, showing bright financial data reflecting the steady growth trend of the company's performance, which is also confirmed by the strong trend of the company's stock price.

Stable and reliable performance further enhances investor confidence.

During the reporting period, NWS Holdings recorded a 21% increase in attributable operating profit year-on-year, reaching HK$4.17 billion; while the attributable profit to shareholders skyrocketed by 44%, reaching HK$2.08 billion, indicating significant optimization of the group's business portfolio and improvement in core business. Despite facing macroeconomic uncertainties in the past year, NWS Holdings has also demonstrated strong risk resistance, achieving a 24% year-on-year adjusted EBITDA growth, amounting to HK$7.24 billion, fully demonstrating its strong growth momentum in operation.

In terms of financial structure, the group has maintained high liquidity, with a total available working capital of about HK$26.8 billion, of which cash and bank balances are as high as HK$14.8 billion, providing solid support for the group's stable operation. Despite facing the dual challenges of rising interest rates and RMB depreciation, the group has managed its financial costs effectively by adjusting its financial strategy, such as increasing the proportion of RMB debt to 60%, ensuring continuous business growth and shareholder value creation.

In terms of shareholder returns, the company has implemented a sustainable and progressive dividend policy, paying dividends for 21 consecutive years. In the 2024 fiscal year, the company's board of directors has also shown a positive outlook for the future, proposing a final dividend of HK$0.35 per share, a 13% increase from last year, which strongly reinforces investor confidence.

With strategic optimization and refined management, NWS Holdings achieved not only steady growth in financial performance in the complex and volatile market environment, but also sustained long-term value creation for shareholders.

The unique 'offensive and defensive strategy' has achieved strong development in the insurance and logistics sectors.

From the perspective of business sectors, its insurance business seized opportunities for significant strong growth, while the logistics business continued to maintain stable growth and expansion. The characteristics of 'offense' and 'defense' presented by both have contributed to the overall steady growth of the company's profits.

In the 2024 fiscal year, NWS Holdings' insurance business recorded significant growth, with operating surplus increasing by 54% to HKD 0.965 billion. During the period, Chow Tai Fook Life Insurance (formerly FUTU Insurance) under the group successfully seized market opportunities by providing attractive products. Especially after the customs clearance in the mainland, the demand from mainland tourists was unleashed, achieving 77% and 37% year-on-year growth in annualized premiums and new business value, reaching HKD 4.549 billion and 1.23 billion respectively.

On the other hand, NWS Holdings' logistics business demonstrated strong stability, with overall operating surplus growing by 6% year-on-year to HKD 0.722 billion. Through newly acquired mainland logistics properties in Chengdu, Wuhan, and Suzhou, the scale of the logistics business has significantly expanded.

During the period, the average occupancy rates of six logistics properties in Chengdu and Wuhan remained at a high level, reaching 85.4%, while the occupancy rate of the logistics property in Suzhou maintained full occupancy (approximately 100%), demonstrating strong market demand and development potential in the domestic logistics business.

Furthermore, the strategic expansion of the group in the logistics business, as well as its emphasis on sustainable development elements such as LED lighting, rainwater recycling systems, have helped it gain market share in the fiercely competitive logistics market and gradually accumulate competitive advantages.

Overall, in the 2024 fiscal year, the proportion of operating surplus from mainland operations accounted for 39% of the total operating surplus. With room for improvement, the share of operating surplus from mainland operations is expected to have substantial room for growth. The author also predicts that the two major business sectors of insurance and logistics under the group may benefit from the extensive layout in the south china greater bay area concept, thereby accelerating this process.

Continuously benefiting from the bullish policies, the reevaluation of value can be expected.

Economic development, logistics take the lead.

In recent years, from the central government to local provincial and city governments in China, they have successively introduced tailored policies to promote the high-quality development of modern logistics industry, supporting the long-term high-quality development layout of logistics industry upgrading and transformation. This year, the State Council issued the "Opinions on Accelerating Comprehensive Green Transformation of Economic and Social Development", promoting the green transformation of transportation by optimizing transportation structure, building green transportation infrastructure, and promoting low-carbon transportation tools. The top-level design, industrial planning, and strong resonance of local policies point the way for the future development of the logistics industry.

At the long-term level, the logistics industry benefits from the favorable policies, which may help to drive the upcoming major event - economic recovery.

In the insurance industry, the implementation of the new "State Ten Regulations" will help the insurance industry truly play the role of economic stabilizer and social stabilizer, actively serve the overall national development.

Recently, the Chinese government successively introduced a series of heavyweight stimulus policies aimed at revitalizing the economy, stimulating social livelihood employment, activating the capital market, and reviving the real estate market, such as the "Several Policy Measures to Promote High-Quality Development of Entrepreneurial Investment" and Central Bank's meeting at the end of September emphasized "fully promoting the rapid implementation of financial incremental policy measures", creating an unprecedented favorable and positive external environment for the long-term development of the domestic insurance and logistics industries.

With the top-down implementation of these heavyweight policies, it is expected to further activate the market economy, thereby vigorously promoting nws holdings to achieve a new round of leapfrog development in the insurance and logistics business over a longer period, ultimately helping to consolidate and enhance its long-term investment value.

Based on the strong development momentum and steady growth performance of nws holdings in the insurance and logistics businesses, as well as the continuous positive feedback from the market and institutions on its stock performance, coupled with various bullish policies introduced by the mainland government to stimulate the economy, all paint a bright future for its future growth in the China market and the sustained enhancement of the company's long-term value.

NWS Holdings announced its annual performance while also declaring the company's renaming to Chow Tai Fook Creation, with the formal renaming pending approval by the shareholders' meeting. This renaming not only reflects the current equity structure and future business direction of the company but also benefits from the synergy of Chow Tai Fook Group. With strong support from the diversified business system of Chow Tai Fook brand, NWS Holdings will further enhance its influence in the main business sectors of insurance, logistics, and others. Meanwhile, following years of ongoing asset portfolio optimization and value-added acquisitions, the market is full of anticipation for its future capital operations and potential restructuring.

In conclusion, in line with the current market conditions, individual stock investment value is expected to further return, worth close attention and high expectations.