《Big Bank》Jia Yin International: Xinhua Insurance (01336.HK) maintains steady performance in early results; target price raised to HK$59

Jiao Yin International’s report said Xinhua Insurance (01336.HK) -0.091 (-0.200%) recorded short selling of $1.02 million, with a ratio of 7.928%. In the first quarter of this year, it achieved premium income of RMB 83.486 billion, new business value of RMB 4.655 billion, and net profit attributable to shareholders of RMB 6.501 billion. Year-on-year, it grew by 14%, 24.7% and 10.5%, respectively. Despite some volatility in investment income due to fluctuations in equity markets and a low interest-rate environment, the impact on overall profitability was slightly smaller than expected. The company’s management reiterated its plan to further optimize its business structure and enhance investment capability, actively develop the third pension pillar and a health management ecosystem, and strengthen customer stickiness and long-term value creation.

Regarding its profit outlook, the brokerage expects the company’s premium business revenue to maintain year-on-year growth of 8% or more over the next three years. New business value is expected to increase to RMB 11.5 billion, RMB 12.8 billion and RMB 13.6 billion, respectively, with the value ratio rising to above 17%. The company has relatively strong management capabilities on the investment side, and its investment portfolio is relatively ideal, with overall controllability despite market turbulence. Affected by the higher second-half profit base and uncertainty in investment income, net profit year-on-year growth may gradually decline. However, long-term profitability still has strong support, and it is expected to show higher earnings flexibility when market risk appetite improves.

Related content: 《Big Banks》: Léon generally raises target prices for mainland and Hong Kong financial stocks; outlook for next year is positive; focus on AIA (01299.HK), China Life (02628.HK), CMB (03968.HK), and PICC (01339.HK). The brokerage believes Xinhua Insurance’s 2026 performance will have a steady start, raises its target price to HK$59, corresponding to a 0.6x target P/EV for 2026, and maintains a “Buy” rating. (su/j)(Hong Kong stock quote delayed by at least fifteen minutes. Short-selling data as of 2026-07-10 12:25.)