Core Viewpoint - China Taiping's 1H25 performance exceeded expectations, with a year-on-year increase in net profit attributable to shareholders of 12.2% to HKD 6.76 billion, primarily due to lower-than-expected income tax [1] Group 1: Business Performance - The new business value (NBV) of life insurance increased by 22.8% year-on-year, aligning with expectations, while the embedded value grew by 8.8% since the beginning of the year [1] - The group’s net assets increased by 4.4% to HKD 74.238 billion [1] - The individual insurance NBV rose by 22.4%, and the bancassurance channel increased by 23.8%, with the overall new business value rate improving by 3.1 percentage points to 21.6% [1] Group 2: Business Structure and Strategy - The company has optimized its business structure significantly, with the contribution of participating insurance to long-term new business orders reaching 91.3%, and individual insurance at 97.5% [1] - The sensitivity of new business to interest rates has decreased significantly, with the negative impact of adverse scenarios on NBV reduced from 30.5% in 1H24 to 5.5% in 1H25 [1] Group 3: Non-Life Insurance and Reinsurance - The non-life insurance segment reported a 4.3% increase in insurance service revenue, with motor and non-motor insurance growing by 2.1% and 7.9% respectively [2] - The combined cost ratio (CoR) improved by 1.5 percentage points to 95.5%, leading to a net profit increase of 87.6% to RMB 630 million [2] - Reinsurance business saw a 2.6% decline in insurance service revenue, but the CoR improved by 2.9 percentage points to 93.8%, resulting in a net profit increase of 77.4% to RMB 800 million [2] Group 4: Investment Performance and Future Outlook - The company’s net and total investment returns were 3.11% and 2.68% respectively, reflecting a decline of 0.36 percentage points and 2.59 percentage points year-on-year [2] - Despite investment pressures, the long-term indicators such as embedded value (EV) showed positive trends, with the group and life insurance EV increasing by 7.2% and 6.5% respectively since the beginning of the year [2] - The forward-looking indicators on the liability side have improved significantly, particularly in the transformation of participating insurance and enhanced underwriting capabilities in non-life insurance [3] Group 5: Profit Forecast and Valuation - The company is currently trading at 0.32x/2025e P/EV, with a target price increase of 25% to HKD 28.4, corresponding to 0.50x 2025e and 2026e P/EV, indicating a potential upside of 55% [3]

Core Insights - China Taiping reported a net profit attributable to shareholders of HKD 6.764 billion for the first half of 2025, representing a year-on-year increase of 12.2%, primarily due to a significant reduction in income tax expenses, despite a 38% decline in pre-tax profit [1][2] - The insurance service segment saw a year-on-year growth of 9.5%, while investment performance turned negative [1] - The new business value (NBV) for life insurance increased by 22.8% year-on-year, driven by improvements in agent and bancassurance channels [1][2] Life Insurance Performance - The NBV for Taiping Life grew by 22.8% year-on-year, with new single premiums increasing by 4.2%, indicating an improvement in NBV value rate, likely driven by pricing rate adjustments and integrated sales [1][2] - The life insurance service performance was stable, with a year-on-year increase of 6.0%, but pre-tax profit for life insurance dropped by 40.8% due to a significant decline in investment performance [2] Property Insurance Performance - The property insurance segment, which includes domestic and overseas property insurance as well as reinsurance, experienced rapid growth, with domestic property insurance premiums increasing by 3.1% year-on-year [2] - The combined ratio (COR) for property insurance improved, decreasing by 1.5 percentage points to 95.5%, attributed to cost reduction and fewer major disasters in the first half of the year [2] Investment Performance - The annualized net investment return rate decreased by 36 basis points to 3.11%, primarily due to declining interest rates [2] - The annualized total investment return rate fell by 259 basis points to 2.68%, with significant losses in trading stocks and bonds leading to negative investment performance [2] Profit Forecast and Valuation - Due to a substantial reduction in income tax expenses, the earnings per share (EPS) estimates for 2025, 2026, and 2027 have been raised to HKD 2.34, HKD 2.79, and HKD 3.10 respectively [3] - The target price based on discounted cash flow (DCF) valuation has been adjusted upwards to HKD 20 from HKD 15, maintaining a "buy" rating [3]

Core Viewpoint - China Taiping reported a net profit of HKD 6.76 billion for H1 2025, reflecting a year-on-year increase of 12.2% [1] Financial Performance - The net profit attributable to shareholders for H1 2025 was HKD 6.76 billion, with life insurance, domestic property insurance, overseas property insurance, reinsurance, and asset management showing year-on-year changes of +5.5%, +85%, -15%, +75%, and -24% respectively [1] - The new business value (NBV) for Taiping Life reached HKD 6.18 billion, representing a year-on-year increase of 22.8% on a comparable basis [1] - As of H1 2025, the embedded value (EV) of Taiping Life was HKD 203.9 billion, up 6.5% from the beginning of the year [1] - The net assets stood at HKD 74.2 billion, reflecting a 4.4% increase from the start of the year [1] - The return on equity (ROE) for H1 2025 was 9.3%, an increase of 1.7 percentage points year-on-year [1] Insurance Segment - The overall insurance service performance for H1 2025 was HKD 12.3 billion, a year-on-year increase of 9.5% [1] - The contract service margin was HKD 213.2 billion, up 2.6% from the beginning of the year [1] - Tax expenses for H1 2025 were HKD 1.07 billion, significantly reduced from HKD 7.55 billion in the same period last year [1] - The pre-tax profit was HKD 10.3 billion, down 37.9% year-on-year [1] Life Insurance - The performance of the insurance service for H1 2025 was HKD 10.9 billion, a year-on-year increase of 6.0% [2] - The contract service margin was HKD 19.38 billion, up 1.1% from the beginning of the year [2] - New single premium income increased by 2.7% year-on-year, with the individual insurance channel's share decreasing by 3 percentage points [2] - The overall NBV for H1 2025 increased by 22.8% on a comparable basis, with individual insurance channel NBV at HKD 4.47 billion (up 22.4%) and bancassurance channel NBV at HKD 2.11 billion (up 23.9%) [2] - The NBV margin was 21.6%, an increase of 3.1 percentage points year-on-year [2] Property Insurance - The comprehensive cost ratio for Taiping Property Insurance was 95.5%, a decrease of 1.5 percentage points year-on-year [2] - The gross premium income for H1 2025 was HKD 19.3 billion, reflecting a year-on-year increase of 3% [2] - Profit for H1 2025 was HKD 690 million, a significant increase of 85% year-on-year [2] Investment Performance - As of H1 2025, the investment asset scale was HKD 1,683.3 billion, up 7.8% from the beginning of the year [3] - The proportion of bonds increased by 2 percentage points, while the proportion of funds decreased by 0.4 percentage points [3] - The annualized net investment yield was 3.1%, down 0.4 percentage points year-on-year, and the annualized total investment yield was 2.7%, down 2.6 percentage points year-on-year [3] - The unannualized comprehensive investment yield was 1.9%, down 3.7 percentage points year-on-year [3] Profit Forecast and Investment Rating - The profit forecast for 2025 has been adjusted upwards, with expected net profits of HKD 9.7 billion, HKD 10.9 billion, and HKD 12.5 billion for 2025-2027 [3] - The current market capitalization corresponds to a 2025E price-to-book ratio of 0.83x and a price-to-embedded value ratio of 0.35x, indicating a low valuation [3] - The company is optimistic about the transformation of its life insurance dividend model and the continuous optimization of its property insurance business cost ratio, maintaining a "buy" rating [3]

Regulatory Developments - The Financial Regulatory Bureau supports insurance institutions in Fujian to develop innovative insurance products covering both sides of the Taiwan Strait [1] - Three departments, including the People's Bank of China, issued a notice to explore a forest insurance product system, including index insurance, yield insurance, income insurance, and liability insurance [2] Industry Performance - In the first half of 2025, the five major listed insurance companies in A-shares achieved a total net profit of 178.19 billion yuan, a year-on-year increase of 3.7%, with New China Life Insurance showing the highest profit growth rate of 33.5% [3] - Insurance capital has increasingly invested in equity assets, with two new equity investment funds established, totaling nearly 27 billion yuan, driven by declining fixed-income asset yields and improved market conditions [4] Company Updates - China Ping An reported a net profit of 68.05 billion yuan for the first half of 2025, with a new business value growth of 39.8% [5] - China Pacific Insurance achieved a net profit of 26.53 billion yuan in the first half of 2025, a year-on-year increase of 16.9% [6] - China Life Insurance reported a net profit of 40.93 billion yuan, a year-on-year increase of 6.9%, with total assets exceeding 7 trillion yuan [7] - New China Life Insurance reported a net profit of 14.8 billion yuan, a year-on-year increase of 33.5%, with a new business value growth of 58% [9] - China Taiping achieved an insurance service performance of 11.35 billion yuan, with a significant transformation in its participating insurance business [10]

截至2025年6月30日，中国太平保险服务收入559.64亿港元，同比增长0.2%；保险服务业绩123.16亿港 元，同比增长9.5%；股东应占溢利净额 (除税后归属母公司净利润）达67.64亿港元，同比增长12.2%， 每股基本盈利1.744港元，同比增加0.206港元。其中，太平人寿新业务价值（NBV）达67.78亿港元，同 比增长22.9%；太平人寿内涵价值达2235.91亿港元，同比增长8.1%；产再险综合成本率为94.3%，同比 优化1.5个百分点，报告期内人民币口径下净投资收益为4.6%。 转自：新华财经 新华财经北京8月29日电（记者张斯文 李柏涛）29日，中国太平2025年中期业绩发布会在香港召开。 编辑：刘润榕 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights significant results from the transformation towards dividend insurance, with a notable increase in property insurance profits year-on-year [8] - The overall profit is under pressure, but the company is expected to benefit from a strong equity market in 2025, leading to an upward revision of profit forecasts [8] Financial Performance Summary - Insurance service revenue is projected to reach HKD 112.846 billion in 2025, with a year-on-year growth of 1.4% [1] - The net profit attributable to shareholders is expected to be HKD 9.705 billion in 2025, reflecting a year-on-year increase of 15.1% [1] - The embedded value (EV) per share is forecasted to be HKD 52.7 in 2025, with a price-to-embedded value (P/EV) ratio of 0.35 [1] Business Segment Analysis - Life Insurance: The company has successfully led the industry in the transformation towards dividend insurance, with a new business value (NBV) of HKD 6.18 billion in the first half of 2025, representing a year-on-year increase of 22.8% [8] - Property Insurance: The comprehensive cost ratio improved to 95.5% in the first half of 2025, with a profit of HKD 690 million, marking an 85% increase year-on-year [8] - Investment: The company has adjusted its asset allocation, increasing bond holdings while reducing fund investments, resulting in a significant decline in overall investment returns [8] Profit Forecast and Valuation - The profit forecast for net profit attributable to shareholders is adjusted to HKD 9.7 billion for 2025, HKD 10.9 billion for 2026, and HKD 12.5 billion for 2027 [8] - The current market capitalization corresponds to a 2025E price-to-book (PB) ratio of 0.83x and a P/EV of 0.35x, indicating that the stock is still undervalued [8]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 20.00 [1][2][10] Core Insights - The company reported a stable growth in New Business Value (NBV) of 22.8% year-on-year, driven by improvements in pricing and distribution channels [6][7] - The overall investment performance faced pressure, with a significant decline in total investment income, leading to a negative investment performance [9] - The underwriting performance in property insurance showed improvement, with a combined ratio (COR) decrease to 95.5% [8] Financial Performance Summary - The company achieved a net profit of HKD 6.764 billion in the first half of 2025, representing a year-on-year increase of 12.2% [6] - Gross premium income is projected to grow from HKD 111.268 billion in 2024 to HKD 129.498 billion in 2027, with a compound annual growth rate (CAGR) of approximately 4.79% [5] - The expected earnings per share (EPS) for 2025 is HKD 2.34, reflecting a growth of 13.25% from the previous year [10][22] Business Segment Analysis - In the life insurance segment, the NBV growth was robust, with a 4.2% increase in new single premiums, indicating an improvement in value rates [7] - The property insurance segment saw a 3.1% increase in domestic premium income, with a notable 55.6% rise in insurance service performance due to cost efficiency measures [8] - The investment segment faced challenges, with a year-on-year decline in annualized total investment return to 2.68% [9] Valuation and Forecast - The target price was adjusted to HKD 20 based on a discounted cash flow (DCF) valuation method, reflecting resilient NBV growth and improved COR [10] - The company’s return on equity (ROE) is expected to be 12% in 2025, indicating a solid profitability outlook [9]

Investment Rating - The report assigns a positive outlook with expectations of over 20% growth in net profit for the year [6]. Core Insights - The company reported a year-on-year profit increase of 12.2%, aligning with expectations, while the New Business Value (NBV) grew by 22.9%, confirming the advantages of its dividend transformation strategy [2][6]. - The overall performance was impacted by a significant reduction in total investment income, which decreased by 155 billion HKD [3]. - The life insurance segment showed a NBV growth of 22.9%, although the growth rate was lower than industry peers due to the impact of the dividend insurance transformation [4]. Summary by Sections Performance Review - For the first half of 2025, the company's net profit attributable to shareholders increased by 12.2% to 6.76 billion HKD, primarily benefiting from a tax reduction of 6.5 billion HKD [3]. - The total investment income saw a decline of 155 billion HKD, with various segments showing mixed results: life insurance profit up by 5.5%, domestic property insurance up by 84.9%, while overseas property insurance down by 15.1% [3]. Life Insurance Analysis - The NBV growth of 22.9% was mainly affected by the transformation towards dividend insurance, with the margin increasing by 3.1 percentage points to 21.6% [4]. - Individual insurance channel NBV rose by 22.5%, despite a 2.3% decline in new premium income, while the bancassurance channel saw a 23.9% increase in NBV with a 15.2% rise in new premium income [4]. Property Insurance Analysis - The combined ratio (COR) improved by 1.5 percentage points to 95.5%, indicating strong performance, with gross premiums increasing by 3.1% [5]. - The annualized net investment return rate was 3.11%, down by 0.36 percentage points, with total investment income decreasing by 41.6% [5]. Profit Forecast and Valuation - The report anticipates a net profit growth of over 20% for the full year, supported by a low profit base in the second half and improving investment conditions since Q3 [6]. - The estimated price-to-embedded value (PEV) ratio for 2025 is projected at 0.33X [6].

Core Insights - China Taiping reported a 12.2% year-on-year increase in net profit attributable to shareholders, reaching HKD 6.76 billion, exceeding expectations [1] - The new business value (NBV) for life insurance grew by 22.8%, aligning with industry forecasts, while the embedded value increased by 8.8% year-to-date [1] - The target price for the company has been raised by 25% to HKD 28.4, indicating a potential upside of over 55% based on 2025 and 2026 projections [1] Business Performance - The life insurance segment's NBV increased by 22.8%, with individual and bancassurance channels growing by 22.4% and 23.8% respectively [2] - The overall new business value rate improved by 3.1 percentage points to 21.6%, with individual and bancassurance rates at 22.7% and 20.0% respectively [2] - The number of individual agents rose by 5.1% to 3,031, with significant increases in NBV per agent [2] Financial Metrics - The property and casualty insurance segment saw a 4.3% increase in insurance service revenue, with net profit rising by 87.6% to RMB 630 million [3] - The combined ratio improved by 1.5 percentage points to 95.5%, indicating better underwriting performance [3] - Investment returns were under pressure, with net and total investment yields at 3.11% and 2.68%, down by 0.36 and 2.59 percentage points respectively [3] Future Outlook - The company is optimistic about the recovery of its valuation, supported by improving forward-looking indicators in the liability side and strong performance in the dividend insurance transformation [4] - The shift towards dividend insurance is expected to enhance profitability and shareholder returns in the future [4]

Core Viewpoint - China Taiping's 1H25 performance shows a net profit increase of 12.2% year-on-year to HKD 6.76 billion, exceeding expectations, with a new business value (NBV) growth of 22.8% [1] Financial Performance - The group's embedded value increased by 8.8% year-to-date, and net assets rose by 4.4% to HKD 74.238 billion [1] - The insurance service revenue for Taiping Property & Casualty increased by 4.3%, with net profit rising by 87.6% to RMB 630 million [3] - The overall insurance service performance showed a year-on-year increase of 9.5% [3] New Business Value - The NBV for Taiping Life increased by 22.8%, with individual and bancassurance channels growing by 22.4% and 23.8% respectively [2] - The overall new business value rate improved by 3.1 percentage points to 21.6%, with individual and bancassurance new business value rates at 22.7% and 20.0% respectively [2] - The contribution of long-term new business from dividend insurance reached 91.3%, with individual insurance at 97.5% and bancassurance at 85.8% [2] Investment and Risk Management - The company’s net and total investment returns were 3.11% and 2.68%, respectively, reflecting a decline [3] - The negative impact of adverse scenarios on NBV has significantly reduced from 30.5% in 1H24 to 5.5% in 1H25 [2] Future Outlook - The company maintains its earnings forecast for 2025-2026 and has raised the target price by 25% to HKD 28.4, indicating a potential upside of over 55% [1] - The liability-side forward indicators show significant improvement, particularly in the dividend insurance transformation and enhanced underwriting capabilities in property and casualty insurance [4]