Investment Rating - The report assigns a "Buy" rating for China Taiping (00966) with a target price based on the last closing price of 8.86 HKD [1][6]. Core Insights - China Taiping's 2023 annual report highlights strong growth in life insurance business and excellent investment performance. The company achieved insurance service revenue of 107.49 billion HKD, a year-on-year decrease of 1.3%, while the net profit attributable to shareholders reached 6.19 billion HKD, reflecting a year-on-year increase of 44.1% [2][4]. Summary by Relevant Sections Financial Performance - The company reported a net profit of 6.19 billion HKD in 2023, with a growth rate of 44.05%. The projected net profits for 2024, 2025, and 2026 are 7.36 billion HKD, 8.48 billion HKD, and 9.64 billion HKD, respectively [4]. - The diluted earnings per share (EPS) for 2023 was 1.50 HKD, with projections of 1.78 HKD, 2.05 HKD, and 2.33 HKD for the following three years [4]. Life Insurance Business - The new business value (NBV) for life insurance reached 6.81 billion RMB, with a comparable year-on-year growth of 27.8%. The total premium income for life insurance was 187.5 billion HKD, an increase of 4.7% year-on-year [2][4]. Investment Performance - The company's investment assets totaled 1.3 trillion HKD, reflecting a year-on-year increase of 14.9%. The net investment income and total investment income were 44.92 billion HKD and 33.57 billion HKD, respectively, with total investment income showing a significant year-on-year increase of 138.8% [2][4]. - The company has optimized its investment strategy, significantly increasing its bond investments, which accounted for 68.7% of the investment portfolio by the end of 2023, up 6.5 percentage points year-on-year [2][4].

[Table_Page] 公司深度研究|保险Ⅱ 证券研究报告 [【Table_T广itle] 发 非 银 & 海 外 】 中 国 太 平 [公Tab司le_I评nves级t] 买入 当前价格 8.55港元 （00966.HK） 合理价值 13.51港元 报告日期 2024-06-14 资负筑底，否极泰来 [相Tab对le_P市icQ场uote表] 现 [Table_Summary] 核心观点： 12% 3%  中国太平的前身“中保国际”于2000年在港交所上市，是我国首家境 -6%06/23 08/23 10/23 12/23 02/24 04/24 06/24 外上市保险公司。回顾公司战略及经营情况，两个三年战略的辉煌期、 -14% 行业冲击和管理层频繁变更的低谷期及改革期。当前公司估值较低， -23% -32% 较同业有提升空间，改革效果持续释放，我们认为公司有望否极泰来。 中国太平 恒生指数  寿险业务：改革持续深化推动业绩领先同业。公司于1937年开设人寿 保险部，1956 年暂停国内业务，2001 年境内复业，2009-2023 年保 [分Ta析ble师_A：uth or] 刘淇 费CAGR为1 ...

Investment Rating - The report maintains a "Buy" rating for China Taiping Insurance (966 HK) with a target price raised to HKD 10.60, indicating a potential upside of 25.4% from the current price of HKD 8.45 [1][2][10]. Core Views - The report anticipates a strong recovery in both the asset and liability sides of the company in 2024, with a projected 17% year-on-year growth in profit [2][4]. - New business value is expected to grow by over 10% year-on-year in 2024, driven by factors such as lower expense ratios from the bancassurance channel and product structure optimization [1][2]. - The solvency ratio of Taiping Life is robust, with a core solvency ratio of 142.79% as of Q1 2024, indicating a strong capital position compared to peers [2][4]. Financial Performance Summary - Revenue is projected to increase from HKD 141,055 million in 2023 to HKD 149,350 million in 2024, reflecting a year-on-year growth of 5.9% [4][11]. - Net profit is expected to rise from HKD 6,190 million in 2023 to HKD 7,247 million in 2024, marking a 17.1% increase [4][11]. - The report highlights a significant increase in investment income, with total investment income forecasted to grow from HKD 33,566 million in 2023 to HKD 38,887 million in 2024 [6][11]. Business Metrics and Projections - The new business value is projected to reach HKD 8,457 million in 2024, with a year-on-year growth rate of 12.6% [5][11]. - The report notes an increase in the investment return rate, with net investment return expected to be 3.46% in 2024 [5][11]. - The company's total assets are projected to grow from HKD 1,509,497 million in 2023 to HKD 1,656,989 million in 2024 [7][11].

Summary of China Taiping's Conference Call Company Overview - **Company**: China Taiping Insurance Holdings Company Limited - **Date of Call**: May 19, 2024 - **Participants**: Senior executives from China Taiping, including Wu Yiwei (General Office), Zhang Peng (Investment Management), and He Yulin (Strategic Development). Key Points Company Performance - The stock price of China Taiping's Hong Kong shares has increased approximately 30% over the past month, indicating strong market performance [3]. - The company has not released a quarterly report due to regulatory differences, focusing instead on mid-year and annual results [3]. Business Strategy and Growth - The company has emphasized a strategy focused on value growth, achieving significant results in the first quarter [7][9]. - In January, the company exceeded last year's first-quarter premium income, indicating a strong start to the year [8]. - The value growth rate has reportedly increased by over 400% compared to previous periods, showcasing robust performance [10]. Regulatory Environment and Market Position - The company is optimistic about the impact of recent regulatory changes, particularly the "insurance and banking integration" policy, which is expected to enhance the value contribution from the bancassurance channel [14][15]. - The management believes that the new policies will create a more competitive environment, benefiting larger, well-resourced companies like China Taiping [15]. Financial Metrics - The company reported a net profit of 1.6 billion yuan for the first quarter, down from 1.8 billion yuan in the same period last year, attributed to differences in accounting standards [26][31]. - The overall liability cost is below 3%, with expectations to maintain this level despite regulatory pressures [32]. Investment Strategy - The investment management team highlighted a shift in focus towards high-dividend stocks, particularly in the banking sector, which has performed well recently [54]. - The company has a fixed income asset allocation of 78.3%, with a significant portion in bonds, minimizing the impact of rising interest rates on investment returns [64]. Challenges and Future Outlook - The company is preparing for potential adjustments in the regulatory environment regarding interest rates and investment returns, with ongoing assessments of market conditions [47][63]. - There are concerns about asset quality due to previous impairments, but management believes that risks have been adequately addressed [60]. Additional Insights - The company has maintained a stable agent workforce during the pandemic, focusing on retention and support for agents, which has resulted in a solid foundation for growth [25]. - The management is committed to enhancing communication with investors and improving market perception of the company's value [34]. Conclusion China Taiping is positioned for growth with a strong focus on value creation and strategic adaptation to regulatory changes. The company is optimistic about its market position and future performance, despite facing challenges related to profit margins and asset quality.

Summary of Conference Call Company/Industry Involved - The conference call involves China Taiping Insurance Holdings Company Limited Core Points and Arguments - The call is intended for professional investment institutions or invited clients of Guotai Junan Securities, focusing on research perspectives [1] - All participants were initially muted, indicating a structured format for the meeting [1] - The content shared during the call represents personal opinions of the experts and does not constitute investment advice [1] Other Important but Possibly Overlooked Content - The meeting emphasizes the importance of disclaimers, highlighting that the information shared is for research purposes only and not for direct investment recommendations [1]

a CHINA TAPING | 95 2023 ANNUAL 年 REPORT 報 CHINA TAIPING Bock Code HK00966 INVEST FRIEND HEAR Contents 目錄 Contents 目錄 Corporate Information 公司資料 4 Simplified Ownership Structure 簡明公司架構 6 Chairman's Statement 董事長致辭 8 Management Review and Analysis 管理層回顧和分析 18 Independent Actuaries Report on Review of Embedded Value Information 關於內含價值信息的獨立精算師審閱報告 57 Embedded Value 內含價值 59 Biographical Details of Directors, Senior Management and Company Secretary 董事、高級管理層及公司秘書之履歷 69 Report of the Directors 董事會報告書 76 Corporate ...

Investment Rating - The report maintains an "Outperform" rating for the company [5][19]. Core Views - The company achieved a significant increase in net profit, with a year-on-year growth of 44.1%, reaching HKD 6.19 billion [2][6]. - The report highlights the strong performance of the life insurance segment, particularly in the bancassurance channel, which is expected to be a new growth driver [2][12]. - The investment structure has been optimized, with an increased allocation to bonds, contributing to a stable growth in investment assets [2][12]. Financial Performance Summary - **Net Profit**: The company's net profit attributable to shareholders was HKD 6.19 billion, up 44.1% year-on-year [2][6]. - **Net Asset Value**: The net asset value decreased by 5.9% from the beginning of the year, totaling HKD 79 billion [2][10]. - **Return on Equity (ROE)**: The ROE improved to 8.5%, an increase of 1.2 percentage points year-on-year [2][10]. - **Embedded Value (EV)**: The group's EV at the end of 2023 was HKD 203.1 billion, reflecting a year-on-year increase of 2.5% [2][6]. - **New Business Value (NBV)**: The NBV for the life insurance segment was HKD 7.51 billion, with a year-on-year growth of 0.7% [2][11]. Segment Performance Summary - **Life Insurance**: The new individual insurance premium increased by 24.3% year-on-year, with a significant rise in bancassurance premiums [2][12]. - **Property and Casualty Insurance**: All segments maintained underwriting profitability, with a comprehensive cost ratio of 98.4%, up 1.2 percentage points year-on-year [2][12]. - **Investment Performance**: The total investment income rose by 138.8% year-on-year, reaching HKD 33.6 billion, driven by better performance in high-dividend stocks and a decrease in domestic interest rates [2][12]. Future Outlook - The report anticipates that the bancassurance channel will become a key value driver for the company in 2024, with expectations of a significant increase in NBV [2][12]. - The company is expected to continue its focus on high-quality development and structural adjustments to enhance profitability [2][12].

Investment Rating - The report assigns an "Outperform" rating to China Taiping Insurance Holdings with a target price of HK$9.26 [2][20]. Core Insights - China Taiping Insurance Holdings reported a net profit attributable to shareholders of HK$6.19 billion for 2023, representing a year-on-year increase of 44.1%. The second half of 2023 saw a net profit of HK$0.97 billion, marking a return to profitability [3][15]. - The company's net assets stood at HK$79 billion, down 5.9% from the beginning of the year, with a return on equity (ROE) of 8.5%, up 1.2 percentage points year-on-year [3][15]. - The report highlights a strategic adjustment in long-term investment return assumptions and risk discount rates, impacting the embedded value (EV) and new business value (NBV) [16]. Summary by Sections Financial Performance - The group’s EV at the end of 2023 was HK$203.1 billion, a 2.5% increase year-on-year. On a comparable basis, the group and life EVs grew by 9.1% and 8.2% respectively [16]. - Taiping Life's NBV reached HK$7.51 billion, a slight increase of 0.7% year-on-year, but on a comparable basis, it grew by 26.0% [16][17]. - The NBV margin was reported at 15.9%, with individual insurance and bancassurance margins at 22.2% and 5.9% respectively [16]. Life Insurance Segment - New premiums for Taiping Life increased by 24.3% year-on-year, with individual long-term first-year premiums at HK$20 billion, up 13.3% [17]. - Bancassurance long-term first-year premiums surged by 45.5% to HK$16.9 billion, indicating a growing share of this channel [17]. - The report notes a significant reduction in the agent workforce, down 40.0% from the start of the year, but anticipates stabilization and recovery in 2024 [17]. Property & Casualty Segment - All divisions within the property and casualty segment remained profitable, with a combined ratio of 98.4%, an increase of 1.2 percentage points year-on-year [18]. - Original premium income for Taiping P&C was HK$33.4 billion, reflecting a year-on-year growth of 1.4% [18]. Investment Strategy - The group’s investment assets grew to HK$1,349.5 billion, a 14.9% increase from the start of the year, with a focus on optimizing the investment structure by increasing bond allocations [19]. - Total investment profit reached HK$33.6 billion, a significant year-on-year increase of 138.8% [19]. - The report attributes the rise in synthetic fund cost rate to strong performance in high-dividend stocks and a decline in domestic interest rates [19]. Valuation - The current stock price corresponds to just 0.1x the 2024E price-to-embedded value (PEV), indicating potential undervaluation [20]. - The report maintains a target PEV of 0.15x for 2024E, reflecting a cautious outlook on the company's valuation [20].

Investment Rating - The report maintains a "Buy" rating for China Taiping (0966) and lowers the target price to HKD 9.61 per share, corresponding to a 2023 P/EV of 0.16 times [3][4]. Core Views - The company's net profit attributable to shareholders for 2023 increased by 44.1%, primarily due to improved investment income. The NBV (New Business Value) met expectations, and the industry is benefiting from cyclical channel optimization, which supports stable performance [3][4]. - The report highlights a significant improvement in comprehensive investment returns, with a notable increase in the total investment return rate by 2.66 percentage points year-on-year [3][11]. Financial Summary - The 2023 net profit reached HKD 6,190 million, up 44.1% year-on-year, driven by substantial investment income improvements [8][11]. - The NBV for 2023 increased by 26.0% (before adjustments) and 0.7% (after adjustments), indicating a strong performance in the savings insurance product strategy [3][11]. - The company’s dividend for 2023 was HKD 0.3 per share, a 15.4% increase year-on-year, with a dividend payout ratio reduced from 33.4% in 2022 to 17.4% in 2023 [3][11]. Business Performance - The individual insurance NBV increased by 7.2% year-on-year, driven by new business growth that meets residents' savings needs, with new individual insurance policies up by 5.3% [3][11]. - The company experienced a significant decline in the number of individual insurance agents, down 40.0% year-on-year to 235,000, while the productivity per agent improved by 30.6% [3][11]. - The property and casualty insurance segment saw a slow growth rate, with total premium income up by 1.4% year-on-year, while the comprehensive cost ratio increased by 1.2 percentage points to 98.4% [3][11]. Investment Strategy - The report suggests that the ongoing strong demand for insurance savings products and a recovering equity market could act as catalysts for future performance [3][11].

Financial Performance - Shareholders' profit attributable to the company reached HKD 6.19 billion, a year-on-year increase of 44.1%[4] - The company's profit attributable to shareholders reached HKD 6.19 billion, a year-on-year increase of 44.1%[15] - The pre-tax profit increased by 90.7% to HKD 11,658.07 million, while the post-tax profit rose by 23.0% to HKD 10,276.94 million[21] - The net profit for the year represented a growth of approximately 12.5% compared to the previous year, highlighting operational efficiency[109] - The total comprehensive income for the year ended December 31, 2023, was HKD 10,276,941, with a profit attributable to shareholders of HKD 6,189,764[109] Asset Growth - The total assets of the group exceeded HKD 1.5 trillion, an increase of 14.2% compared to the end of 2022[4] - Total assets grew to HKD 1,509.5 billion, representing a 14.2% increase compared to the end of last year[15] - The total assets as of December 31, 2023, reached HKD 1,509,497.49 million, reflecting a growth of 14.2% from HKD 1,321,590.06 million in 2022[22] - Total assets increased by 14.2% to HKD 1,255,876.78 million, and total equity rose by 1.7% to HKD 61,767.89 million[29] Investment Performance - The investment return rate and comprehensive investment return rate showed significant improvement[4] - Investment assets amounted to HKD 1,349.5 billion, up 14.9% from the previous year, with total investment income rising by 138.8% to HKD 33.57 billion[17] - The total investment income increased by 138.8% to HKD 33,565.86 million in 2023, compared to HKD 14,053.29 million in 2022[61] - The company's stock holdings outperformed the Hang Seng Index by 18.47 percentage points, benefiting from a high dividend strategy[17] Insurance Business Highlights - The premium scale of property insurance exceeded RMB 30 billion for the first time[4] - The group signed contracts with 114 strategic clients, contributing a total premium scale of HKD 58.85 billion in 2023[7] - New business value in life insurance increased by 27.8% year-on-year, with new individual insurance premium growth of 24.3%[15] - The reinsurance business saw a revenue increase of 8.6% year-on-year, maintaining an underwriting profit with a combined ratio of 95.6%[17] Risk Management - The group established a negative list for investment trading counterparties to enhance risk management[8] - The company is focused on risk compliance management, implementing a comprehensive risk management mechanism to prevent and mitigate risks effectively[12] - The company has made significant progress in risk prevention and resolution, achieving notable results in addressing challenges and implementing strategic initiatives[14] Digital Transformation and Innovation - In 2023, the company emphasized the importance of digital transformation and the development of a digital financial service model combining insurance, technology, and services[11] - The company launched innovative products such as the Smart Product Assistant and Smart Outbound Call Assistant, enhancing its digital transformation efforts[20] - The financial technology ecosystem was expanded with the establishment of the China Taiping Financial Technology Ecosystem Alliance, now comprising 35 member units[20] Corporate Social Responsibility and Initiatives - The group actively supported the "Belt and Road" initiative, insuring 474 projects along the route[5] - China Taiping is committed to expanding its green insurance offerings and increasing green investments to better serve the real economy[10] - The company is dedicated to supporting the development of the Greater Bay Area and enhancing Hong Kong's position as an international financial center[10] Market Outlook and Strategy - The company is optimistic about the potential of the Chinese insurance market and the resilience of the Chinese economy despite external challenges[9] - The company aims to enhance its core competitiveness by optimizing its business structure and improving capital efficiency, aiming for long-term stable and high returns[11] - The company anticipates a global economic growth rate of 3.1% in 2024, with inflation expected to decrease from 6.8% in 2023 to 5.8%[81] Financial Health and Solvency - The total equity increased by 20.8% to HKD 132,595.65 million, up from HKD 109,797.44 million in the previous year[22] - The solvency ratio for Taiping Life reached 284%, up 90 percentage points from the previous year, indicating strong financial health[31] - The comprehensive solvency ratio improved to 216% in 2023 from 186% in 2022, an increase of 30 percentage points[44] Customer and Market Engagement - The number of elderly residents in the Shanghai Wutong Elderly Community surpassed 1,000, with several new communities opening in 2023[6] - The number of personal customers for Taiping Property Insurance increased by 1,755,151 to 9,853,300[44] - The number of individual customers decreased to 15,174,031 from 15,743,273, a decline of 569,242[38] Employee and Operational Efficiency - The group reduced its employee count to 65,378 as of December 31, 2023, down from 68,386 in 2022, with total employee costs decreasing by 15.3% to HKD 12.762 billion[75] - The company’s customer service capabilities improved significantly, with a complaint total decrease of 19.7% year-on-year[19] Accounting and Financial Reporting - The company has adopted new accounting standards for insurance contracts and financial instruments, which may impact future financial reporting and performance metrics[116] - The company adheres to Hong Kong Financial Reporting Standards in preparing its financial statements, ensuring accuracy and compliance[119] - The company confirmed that reinsurance contracts are accounted for similarly to issued insurance contracts, using consistent assumptions[126]