FIRST SHANGHAI released a research report assigning PICC P&C (02328) a "buy" rating, forecasting the company's net profit attributable to shareholders for 2025-2027 at 45.0/47.7/51.5 billion yuan respectively, representing year-on-year growth of 35.9%/5.7%/8.1%, with a target price of HK$22.2. As the leading company in the property and casualty insurance industry, the company's scale and cost advantages are amplifying, with the Matthew effect intensifying. The company's first-half performance demonstrated its strong alpha capability. Against the backdrop of industry stability, the company achieved robust endogenous growth in profitability through lean internal management and scientific risk pricing. This trend is expected to continue in the second half, supporting high-quality growth in the company's full-year performance. As the only pure property and casualty insurance stock in Hong Kong, the company has a sustainable profit model with long-term stable ROE and dividend yield, offering long-term investment value. The report stated that in the first half of 2025, the company achieved insurance service revenue of 249.0 billion yuan, up 5.6% year-on-year; among which, motor insurance business achieved insurance service revenue of 150.3 billion yuan, up 3.5% year-on-year; non-motor insurance service revenue reached 98.7 billion yuan, up 8.8% year-on-year. The company achieved net profit of 24.5 billion yuan in the first half, up 32.3% year-on-year. Underwriting profit, excluding investment volatility impact, reached 13.0 billion yuan, surging 44.6% year-on-year, marking the company's core business profitability reaching new heights. The company's net assets increased 7.9% from the beginning of the year in the first half, with an interim proposed dividend of 0.24 yuan per share, up 15.4% year-on-year.