Bank of America Securities raises target price for New China Insurance to 39 Hong Kong dollars, with strong profit growth in the first three quarters.

Bank of America Securities published a research report stating that New China Insurance's net profit for the first three quarters reached 32.9 billion yuan, a year-on-year increase of 59%, exceeding expectations. Although the base was higher last year due to fair value gains from the stock market rally, New China Insurance maintained a strong profit performance in the third quarter of this year thanks to robust investment income growth. Based on the improved investment income forecast, Bank of America Securities raised New China Insurance's profit forecast for 2025 by 23%, and raised the profit forecast for 2026 to 2027 by 1% to 2%, with the target price increased by 2% to 39 Hong Kong dollars. It reiterated a "underperform" rating, believing that its valuation level is relatively high compared to its peers in the industry.