First Shanghai: Give China Property Insurance a "buy" rating target price of HK$23.3

First Shanghaireleased a research report that it has givenChina Property Insurance (02328) a "buy" rating, with a target price of HK$23.3, corresponding to 1.5 times PB in 2026. The target price has a 21.7% room to increase compared with the current price.With the transformation of China's economic structure and the increasing demand for social risk protection, the non-auto insurance sector will be the core engine for future premium growth of China's property insurance. The bank believes that the company is in a critical period of strategic transformation. In the domestic market, its non-auto insurance business has grown into one of the "two-wheeled" competing with auto insurance, showing strong growth momentum and sustained profit improvement. In overseas markets, the company's internationalization strategy helps China companies go abroad and open the second growth curve.
In the first three quarters of 2025, the company achieved insurance service income of 385.9 billion yuan, a year-on-year increase of 5.9%; of which the automobile insurance business achieved insurance service income of 227.6 billion yuan, a year-on-year increase of 3.7%; non-automobile insurance service income was 158.3 billion yuan, a year-on-year increase of 9.3%; Net profit in the first three quarters was 40.3 billion yuan, a year-on-year increase of 50.5%. Benefiting from the rise in the capital market, the company achieved a total investment income of 35.9 billion yuan in the first three quarters, a year-on-year increase of 33%. The unannualized total investment return rate reached 5.4%, a year-on-year increase of 0.8 percentage points.
According to the report, the company's original premium income from non-car business in the first three quarters was 223.06 billion yuan, accounting for 50.3%, exceeding that of auto insurance business. On October 10, 2025, the State Financial Supervision and Administration issued the "Notice on Matters Related to Strengthening the Supervision of Non-Auto Insurance Business." This policy will be officially implemented on November 1 to implement rate management and supervision in the non-auto industry. In the future, non-auto insurance business has become the core engine of the company's premium growth. In the future, with the implementation of new non-auto insurance policies, which will guide industry rates to decline, which will directly benefit the improvement of underwriting profit margins, and the comprehensive cost ratio of the company's non-auto insurance business will continue to improve.In 2025, the Company aims to control the comprehensive cost rate of automobile insurance within 96% and the comprehensive cost rate of non-automobile insurance within 99%.
In addition, the company launched an internationalization strategic plan with the goal of driving significant growth in overseas business increments within five years. The company's internationalization strategy is deeply embedded in the context of China companies "going global" and RMB internationalization. Its core logic is to "serve China products and China enterprises," especially around the two main lines of China's new energy vehicles going to sea and overseas infrastructure construction. At present, the company has successfully implemented relevant business in China Hong Kong and Thailand, and is expected to radiate to Europe and Southeast Asia in the future. The company chose new energy vehicle insurance as a pioneer in overseas business. This can not only directly serve the overseas expansion of China's advantageous industries, but also reuse the domestic experience in new energy auto insurance pricing and risk management to form differentiated competitive advantages. China is one of the world's largest trading countries and foreign investors. With the deepening of the "Belt and Road" initiative and the globalization of China brands, its overseas risk protection needs are a blue ocean market of hundreds of billions.