Understanding the Market | SUNSHINE INS rose over 4% in the afternoon, with a year-on-year increase in net profit of 45.8% and total premium income growth of 8%

SUNSHINE INS rose over 4% in the afternoon, as of the time of writing, up 4.64% to HKD 3.38, with a transaction volume of HKD 34.567 million. In terms of news, SUNSHINE INS announced its full-year financial report for the year ending December last year, with revenue of RMB 90.27 billion, a year-on-year increase of 15.4%; net profit of RMB 5.449 billion, a year-on-year increase of 45.8%; earnings per share of RMB 0.47. A final dividend of RMB 0.19 was declared. Notably, during the period, the group's total premium income was RMB 128.38 billion, a year-on-year increase of 8%. Huatai Securities stated that SUNSHINE INS's EPS of RMB 0.47 represents a year-on-year increase of 47%, mainly driven by strong performance in equity investments, exceeding the bank's expectation of RMB 0.40. The total investment return rate for 2024 is expected to increase by 0.9 percentage points year-on-year to 4.3%, driving better-than-expected performance growth. DPS of RMB 0.19 saw a slight year-on-year increase. The new business value (NBV) of life insurance increased by 88% year-on-year on a comparable basis. The comprehensive cost ratio (COR) for property insurance was 99.7%, a year-on-year increase of 1 percentage point, indicating a deterioration in underwriting performance. Considering that NBV is expected to grow steadily, the rating is maintained at "Buy."