Highlights of securities morning meeting | Insurance performance outlook for 2025: Full year profit and NBV are expected to continue high growth

Yesterday, the market opened high and continued to rise, with the Shanghai Composite Index up more than 1% and the Shenzhen Component Index up more than 2%. The trading volume of the two markets exceeded 2.25 trillion yuan, an increase of 103.8 billion yuan from the previous trading day. In terms of market performance, there was rapid rotation of hot spots, with more than 4600 stocks rising across the board. Looking at the sectors, AI applications continued to rise, with Inly Media Co., Ltd., Ronshin Group, COL Group Co., Ltd., Hicon Network Technology, IReader Technology, and H&R Century Union Corporation all hitting the limit up. The chemical industry sector was active, with Zhejiang Runtu up for two consecutive days, and Nanjing Red Sun, Anhui Huaertai Chemical, Zhejiang Hisoar Pharmaceutical, and Jiangsu Yabang Dyestuff all hitting the limit up. The photovoltaic concept was active, with GCL System Integration Technology up for four consecutive days, and TCL Zhonghuan Renewable Energy Technology up for four out of the last two days. The computing power hardware concept was collectively strong, with Suzhou TFC Optical Communication reaching a historical high with a limit up of 20cm. The commercial aerospace concept rose, with Jiangsu Zhongchao Holding, GuangDong Topstrong Living Innovation & Integration, and Hangxiao Steel Structure all hitting the limit up. On the downside, oil and gas stocks showed weaker performance, with Tong Petrotech Corp. and Sino Geophysical oscillating lower. At the close, the Shanghai Composite Index was up 1.41%, the Shenzhen Component Index was up 2.17%, and the ChiNext Index was up 2.98%. At today's brokerage morning meeting, Industrial believes that the proportion of MPO in data centers is expected to further increase; Tianfeng believes that with outstanding quality and price ratio, breakthroughs in new scenarios, the long-term growth of white chicken consumption can be expected; Huaxi believes that the performance outlook of the insurance industry for 2025: annual profit and NBV are expected to continue to grow. Industrial: The proportion of MPO in data centers is expected to further increase MPO is a core passive device in high-density optical interconnection, and in the AI era, the data communication market is gradually becoming an important incremental scenario for MPO. It is expected that the global MPO market size will increase from $741 million in 2024 to $1.592 billion in 2030, with a compound annual growth rate of 13.6%. MPO is mainly used for long-distance transmission in the telecommunications market, while in the data communication market, it is used for optical module interconnection, backbone optical cable connection, and bandwidth upgrade scenarios. With the increasing demand for AI, the proportion of MPO used in data centers is expected to further increase. MPO will have the opportunity for both quantity and price to rise in the context of the bandwidth upgrade for AI, and is also expected to penetrate into server cabinets with the benefit of the CPO program. Tianfeng: With outstanding quality and price ratio, breakthroughs in new scenarios, the long-term growth of white chicken consumption can be expected By 2025, the Ministry of Agriculture and Rural Affairs, the National Health Commission, and the Ministry of Industry and Information Technology jointly issued the "Outline of China's Food and Nutrition Development (2025-2030)", which clearly states that "optimizing the production and sales structure of livestock and poultry meat, expanding poultry consumption" as one of the key tasks. Head Western restaurant brands like McDonald's and YUM CHINA continue to expand and propose price increase plans, while the chain rate of Chinese restaurant brands increases, driving the increase in demand for chicken meat ingredients; at the same time, boosting domestic consumption and consumption policies are favorable for the digestion of white chicken inventory and upward demand. The industry has been stabilizing for 3 years, with an increasing willingness to reduce capacity; the current overseas breeding continues to be disrupted, emphasizing changes in the quantity and structure of breeding, and focusing on opportunities for market sentiment reversal; it is recommended to focus on the rise of independent breeding opportunities and grasp the leading enterprises in the replacement of breeding resources. Huaxi: Insurance industry performance outlook for 2025: annual profits and NBV are expected to continue to grow It is expected that the net profit attributable to the mother of listed insurance companies for the whole year of 2025 will continue to grow rapidly, with some pressure in Q4 due to the impact on the investment side; in the first three quarters of 2025, the combined net profit attributable to the mother of the five A-share listed insurance companies reached 426 billion yuan, a year-on-year increase of 33.5% based on a high base in the same period last year. The net profit growth rates of the five insurance companies from high to low in the first three quarters were China Life Insurance +60.5%/New China Life Insurance +58.9%/PICC +28.9%/CPIC +19.3%/Ping An Insurance +11.5%; in Q4 of 2025, the equity market experienced a slight pullback, with the Shanghai and Shenzhen 300 Index/ChiNext Index/STAR 50 Index down by -0.2%/-1.1%/-10.1%, respectively. Considering that the proportion of insurance funds invested in stocks and funds is 15.5% (as of the end of the third quarter of 2025), reaching a new high in recent years, it is expected that the net profit of insurance companies in Q4 of 2025 may be affected by the investment side, and the total net profit of listed insurance companies for the whole year of 2025 is expected to continue to grow at a double-digit rate. This article is reproduced from "Caixin Financial News". GMTEight Editor: Huang Xiaodong.