NCI

New China Life Insurance (NCI) traded higher in the morning session, closing up 5.3% at HKD 46.92, driven by the company's forecast of a 40%-60% interim net profit surge and a 17% YoY net profit increase in Q1 2026 to HKD 7.37 billion, alongside a 9.2% revenue rise. However, the stock remains below its 20-day (HKD 47.63) and 60-day (HKD 49.07) moving averages, with a year-to-date decline of 16.5% and still 28.7% below its 52-week high of HKD 65.8. On the institutional side, UBS downgraded NCI to Neutral from Buy and lowered its target price from HKD 72 to HKD 45.5, while Citi maintained a Hold rating.

New China Life Insurance dropped 4.8% to close at HK$44.68, extending recent weakness. Opening at HK$46.84, the stock fell sharply in the morning session to an intraday low of HK$44.22, near its 52-week low of HK$41. The afternoon session saw continued low-level consolidation, closing at HK$44.56. The stock is down 20.5% year-to-date, trading 32.1% below its 52-week high of HK$65.8, and below both its 20-day MA (HK$47.78) and 60-day MA (HK$49.13), reflecting persistent technical pressure. However, a P/E of 3.33x, P/B of 1.0x, and dividend yield of 6.95% may offer valuation support.

NCI rallied sharply in the afternoon session, closing at HKD46.56, up over 7.7% from the morning low of HKD43.24, with total turnover of nearly HKD1.2 billion. The surge was driven by the company's interim profit forecast, projecting a 40%-60% YoY surge in first-half net profit, significantly exceeding expectations. UBS downgraded NCI to Neutral and lowered its target price from HKD52 to HKD45.5, yet the strong earnings guidance dominated sentiment. Q1 revenue grew 9.2% YoY and net profit rose 17%, supporting the fundamental story. However, the stock remains nearly 30% below its 52-week high of HKD65.8 and trades below both MA20 (48.76) and MA60 (49.34), with a YTD decline of 17.4%, indicating technical recovery is still pending.

New China Life Insurance opened lower and closed at HKD 43.66, down 3.6% from the previous close of 45.30, after hitting an intraday low of 42.60 near its 52-week low. The morning session slid from 45.26 to 42.72, and the afternoon session oscillated in a low range of 42.74-43.60, failing to recover losses. Despite Citi starting a 30-day positive catalyst watch and lifting its target price to HKD 59, the stock remained under pressure, partly due to Morgan Stanley's 'Underweight' rating with a target of only HKD 44.8. The YTD decline of 22.31% and prices well below the MA20 (49.01) and MA60 (49.36) indicate weak momentum, though valuation appears low with a PE of 3.26 and PB of 0.97. Q1 net profit rose 17% YoY to HKD 6.56 billion, revenue grew 9.23%, and EPS of 2.3582 was up 16.5%, suggesting fundamentals remain intact.