Daily Investment Strategy
Recommended Stocks：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. Ping An has multiple investment themes. First, with proactive measures from the central government, if the property market stabilizes or improves, Ping An is expected to benefit more. Meanwhile, regarding the swap program, which has an initial scale of RMB 500 billion, it is estimated that the capital will primarily flow into large financial stocks like Ping An for dividend revenue. Lastly, considering recent improvements in global stock markets, including mainland A-shares, along with strong performance in the bond market, these factors are favorable for its investment returns. Overall, the 3Q24 results exceeded expectations, with the core life insurance business continue to recover. The investment value of PAI remains. Target price: $60; Stop- Loss price: $43.
The IMF predicts that the global economy will grow by 3.2% in 2025
The International Monetary Fund (IMF) releases its World Economic Outlook in October 2024, outlining key growth forecasts and risk assessments for the year ahead and beyond. The International Monetary Fund predicts that the global economy will grow by 3.2% in 2024 and 3.2% in 2025. There are some noteworthy changes in the IMF forecast for October 2024 compared to the July 2024 forecast. On top of that, U.S. growth prospects have improved in 2024 and 2025, while China's growth prospects have weakened in 2024. Geopolitical risks will continue to pose a threat to global stability and growth.
Hong Kong Stock Connect had a net inflow of HK5.90bn on Tuesday of which Geely (175) had the largest net inflow, reaching HK$0.49bn; followed by Tracker Fund (2800). SMIC (981) recorded the largest net outflow at HK$0.27bn, followed by Autostreet (2443).
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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