Understanding the Market | PICC P&C rose over 3% after positive earnings forecast, expecting net profit in the first three quarters to increase by up to approximately 60% year-on-year

PICC P&C rose over 3% after a profit alert, and as of the time of writing, it is up 2.24%, trading at HKD 19.2, with a transaction volume of HKD 426 million. On October 16, PICC P&C announced that, based on the company's preliminary estimates, it expects its net profit for the first three quarters of 2025 (from January 1, 2025, to September 30, 2025) to increase by approximately 40% to 60% compared to the same period in 2024. The announcement stated that benefiting from the rise in the capital market in the first three quarters, the optimization of the company's asset allocation structure amplified the positive effects of the market increase, resulting in a significant year-on-year increase in total investment income. Citigroup pointed out that the median profit forecast for PICC P&C for the first three quarters of 2025 is RMB 40.1 billion, exceeding market expectations. The implied net profit for the third quarter of 2025, calculated according to Chinese accounting standards, is approximately RMB 14 billion to 19 billion, indicating a year-on-year growth of about 51% to 108%