Daily Investment Strategy
Recommended Stock：PAI（2318）
Ping An reported revenue of RMB861.8bn for 9M24, a yoy increase of 8.74%. The three core businesses—life and health insurance, property insurance, and banking—showed stable growth, with operating profit attributable to shareholders amounting to RMB119.6bn, up 5.7% yoy. During this period, net profit attributable to the parent company was RMB119.1bn, representing a yoy increase of 36.1%. In 9M24, the new business value for life and health insurance reached RMB35.1bn, a yoy increase of 34.1%. Notably, the new business value from the agent channel grew by 31.6%, and the per agent new business value increased by 54.7%, indicating improvement in productivity. The management of PAI recently indicated that the company will further optimize and adjust its product structure. In the future, will focus on participating products, which are expected to account for over 50% of Ping An's overall sales. Given Ping An's attractive investment yield, its products have a competitive advantage compared to peers. Overall, the 3Q24 results exceeded expectations, with the core life insurance business continue to recover. The investment value of PAI remains. Target price: $60
PCE inflation data meet expectations
The PCE price index in October was in line with expectations, increasing 0.2% from the previous month, increasing 2.3% on an annual basis. Both data were in line with consensus expectations, although the annual rate was higher than September's 2.1% level. Core inflation data, excluding food and energy, was stronger, rising 0.3% monthly and 2.8% higher than the same period last year. Both met expectations.
Hong Kong Stock Connect had a net inflow of HK5.27bn on Wednesday of which Alibaba (9988) had the largest net inflow, reaching HK$1.69bn; followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow at 1.04bn, followed by Xiaomi (1810).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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