NCI (HKEX: 01336) shares opened significantly higher, gaining over 4%, following the release of a positive profit forecast. At the time of writing, the stock is up 4.56%, trading at HK$45.4 with a turnover of HK$10.01 million.
The insurer announced that it expects its net profit for the first half of the year to be between RMB 20.719 billion and RMB 23.678 billion, representing a year-on-year increase of 40% to 60%. Based on calculations, the company's second-quarter net profit is projected to be between RMB 14.218 billion and RMB 17.177 billion, indicating a sequential quarter growth of 118% to 164%. The anticipated profit growth is primarily attributed to strategic optimizations in the asset allocation mix, including increased investment in technology innovation companies and new quality productive forces, which have yielded favorable investment returns.
Analysis highlights that by the end of 2025, NCI's investment portfolio allocation to stocks and funds combined stood at 21.2%, a figure notably higher than the industry average. Within this, the proportion of stocks classified as fair value through profit or loss accounted for 81% of the equity holdings. When considering funds, the FVTPL portion within secondary market equity investments reaches approximately 90%, both metrics significantly exceeding peer levels. This suggests a relatively flexible and proactive investment strategy that may position the company to benefit more readily from a structural bull market in the technology sector.
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