Movement Alert|NCI Rises 3.23% in Regular Trading, H1 Net Profit Surges 54% Amid Insurance Sector Valuation Recovery

Market Focus
Sep 04

On September 4, NCI rose 3.23% in regular trading, trading at HKD 50.9 per share, with turnover of HKD 140 million. The rally extends a multi-day uptrend driven by strong interim results and broader insurance sector strength.

NCI disclosed its H1 report on August 26, reporting revenue of RMB 83.26 billion, up 18.9% year-over-year, with net profit attributable to shareholders reaching RMB 22.79 billion, surging 54% YoY, primarily driven by improved investment performance. The annualized total investment return reached 6.7%, up 0.8 percentage points YoY. On the liability side, long-term insurance first-year regular premiums grew 27.7%, while new business value rose 11.9%. The company declared an interim dividend of RMB 0.73 per share.

The five major listed Chinese insurers collectively posted 78% growth in H1 attributable net profit. Sector valuations remain near historical lows, with institutions noting a high margin of safety. Analysts expect the investment thesis to shift toward medium-to-long-term valuation recovery and high-dividend allocation opportunities, maintaining an overweight rating on the sector.

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