PICC P&C (02328) reported its Q3 results, with net profit for the third quarter and the first nine months rising 91.5% and 50.5% year-on-year to RMB15.81 billion and RMB40.27 billion, respectively, in line with market expectations following a prior profit alert. Shareholders' equity grew 12.3% from the beginning of the year to RMB2.899 trillion.

CICC maintained its "Outperform" rating on PICC P&C, raising its 2025 and 2026 EPS forecasts by 25% and 7% to RMB2.14 and RMB1.89, respectively, due to better-than-expected investment performance. The valuation basis was extended to 2026, with the target P/B ratio adjusted from 1.2x to 1.3x, lifting the target price by 23% to HK$19.1.

The report highlighted PICC Group's (01339) recent capital market open day, which outlined high-quality growth strategies for its non-auto business. One key focus is supporting Chinese enterprises' global expansion through coordinated overseas business development, covering both corporate and product internationalization. PICC has systematically planned organizational adjustments to achieve these goals and expects overseas operations to contribute 30% of incremental premiums over the next five years.

CICC believes PICC P&C is well-positioned to capitalize on the "going global" trend among Chinese enterprises during the 15th Five-Year Plan period, creating room for valuation upside through overseas expansion.