NCI expects interim profit to surge up to 60% on AI push

NCI (01336.HK) expects interim net profit to reach as much as RMB23.7 billion, a 60% year-over-year surge driven by AI investment and stronger investment returns.

"The company has remained committed to inward-focused and high-quality development, promoting the synergistic model of 'insurance plus service plus investment,'" the board said in a filing to the Hong Kong stock exchange.

Net profit for the six months ended June 2026 is expected to range from RMB20.719 billion to RMB23.678 billion, representing a 40% to 60% increase from the prior-year period. Excluding non-recurring gains and losses, profit is forecast between RMB20.789 billion and RMB23.758 billion, also up 40% to 60%.

The guidance signals that NCI's strategic pivot toward technology-driven insurance is gaining traction. The company has boosted investment in AI technology and deepened its customer service ecosystem spanning medical care, healthcare and old-age care.

The insurer strengthened its investment research capabilities and optimized asset allocation, increasing support for science and technology enterprises and new productive forces, according to the filing. These moves drove "excellent investment returns," the board said.

NCI's core life insurance business posted steady value growth as the company enhanced its "customer-centric" operations and service capabilities, the filing shows.

The company previously paid an interim dividend of RMB0.67 per share for the 2025 interim period and a final dividend of RMB2.06 per share for the full year 2025. The interim 2026 dividend has not yet been declared.

Shares of NCI rose 1.3 percent on Monday, with short selling accounting for 15.6 percent of turnover. The stock has gained about 18 percent year to date, outperforming the Hang Seng Index.

The profit upgrade positions NCI for a potential re-rating as investors reassess the earnings power of China's life insurance sector while capital market conditions improve. The company's full interim results, including any dividend declaration, are expected in late August.

This article is for informational purposes only and does not constitute investment advice.