Investment Rating - The report maintains a "Buy" rating for the company, with an adjusted target price of HKD 11.60, indicating a potential upside of 18.1% from the current price of HKD 9.82 [2][9]. Core Insights - The company's performance on both asset and liability fronts has significantly exceeded expectations, with a projected profit growth of over 40% for the year due to a low base in the second half of 2023 [2][9]. - The new business value has shown rapid growth, increasing by 85.5% year-on-year, driven primarily by individual insurance and bancassurance channels [1][5]. - Investment income has performed strongly, with net investment income rising by 10.8% and total investment income increasing by 57.1% year-on-year, attributed to optimized equity investment structures [1][5]. Financial Performance Summary - For the first half of 2024, the company's net profit attributable to shareholders reached HKD 6,027 million, reflecting a 15.4% year-on-year increase [1][5]. - The new business value for the first half of 2024 was HKD 7,335 million, with a year-on-year growth of 85.5% [5][6]. - The company's total investment income for the first half of 2024 was HKD 37,242 million, marking a 57.1% increase compared to the previous year [5][10]. Business Segments Performance - Life insurance operating profit increased by 4.9% year-on-year, while the reinsurance segment turned profitable with a significant recovery [1][5]. - The domestic property and casualty insurance segment saw a remarkable 100.3% increase in operating profit, while the overseas property and casualty insurance segment's operating profit grew by 74.5% [5][6]. - The company plans to enhance its focus on dividend insurance sales in the second half of the year, anticipating a new business value growth of over 50% in 2024 [1][5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [7]. Core Insights - The company reported a net profit attributable to shareholders of HKD 6.03 billion for the first half of 2024, representing a year-on-year growth of 15.4%. The new business value reached HKD 6.69 billion, up 108.3% year-on-year [2]. - The significant profit growth is driven by a remarkable increase in net investment performance, which surged by 360.7% to HKD 7.503 billion. Various segments, including life insurance, domestic property insurance, overseas property insurance, reinsurance, and asset management, also showed positive profit growth [2]. - The company's embedded value (EV) increased by 8.0% compared to the end of the previous year, reflecting strong operational performance [2]. Summary by Sections Performance Review - The company's net profit for the first half of 2024 was HKD 6.03 billion, a 15.4% increase year-on-year, driven by a 360.7% rise in net investment performance to HKD 7.503 billion [2]. - The life insurance segment saw a 4.9% increase in net profit, while domestic and overseas property insurance profits grew by 100.3% and 74.5%, respectively [2]. Life Insurance Analysis - The new business value (NBV) in RMB terms grew by 108%, with a significant margin improvement driven by product adjustments and reduced costs [2]. - The NBV in HKD terms increased by 85.5%, primarily due to a margin increase of 12.4 percentage points to 24.6%, despite a new policy premium decline of 8.8% [2]. - The individual insurance channel's NBV rose by 59.8%, while the bank insurance channel's NBV surged by 304%, although new policy premiums dropped by 30% due to regulatory changes and high base effects from the previous year [2]. Investment Performance - The annualized net investment yield was 3.47%, a decrease of 0.16 percentage points year-on-year, while the total investment yield increased by 1.38 percentage points to 5.27% [2]. - The company has a limited exposure to real estate debt financial products, amounting to HKD 18.4 billion, which is only 1.1% of total assets [2]. Profit Forecast and Valuation - The report anticipates a slowdown in NBV growth to around 30% for the full year, with profit growth expected to exceed 30% due to a low base in the second half of the year [2]. - The projected EVPS for 2024, 2025, and 2026 is HKD 61.8, HKD 65.8, and HKD 70.3, respectively, with the current stock price reflecting a PEV valuation of 0.14, 0.13, and 0.12 times for the respective years [2].

海 外 公 司 （ 中 国 香 港 ） NBV 大超预期，投资端否极泰来 中国太平(0966) [Table_Industry] 保险 | --- | --- | --- | --- | |----------|--------------------------------|----------------------|-------------------------| | | | ——中国太平 | 2024 年中报业绩点评 | | | [table_Authors] 刘欣琦(分析师) | 谢雨晟(分析师) | 李嘉木(分析师) | | | 021-38676647 | 021-38674943 | 021-38038619 | | | liuxinqi@gtjas.com | Xieyusheng@gtjas.com | lijiamu026075@gtjas.com | | 登记编号 | S0880515050001 | S0880521120003 | S0880524030003 | 本报告导读： 公司 24H1 归母净利润同比 15.4%，由资负两端共同驱动；NBV 高速增长，业务品 质全面改善 ...

Financial Performance - Shareholders' profit attributable increased to HKD 60.27 billion, a year-on-year growth of 15.4%[6] - Pre-tax profit increased by 110.7% to HKD 16,528.16 million, up from HKD 7,844.45 million in 2023[19] - The company's profit before tax for the six months was HKD 16,528,157, a substantial increase of 110.0% from HKD 7,844,453 in 2023[109] - The net profit attributable to shareholders for the period was HKD 8,978,244, up 19.4% from HKD 7,521,241 in the previous year[110] - The company reported a net profit of HKD 6,026.68 million for the six months ending June 30, 2024, compared to HKD 2,951.56 million in the same period last year, representing a significant increase[116] - The total comprehensive income for the period was HKD 23,858.19 million, up from HKD 3,490.00 million year-on-year, indicating strong growth in overall performance[116] Revenue and Income - Insurance service revenue reached HKD 55.875 billion, up 3.2% year-on-year, with insurance service performance growing by 38.0% to HKD 11.249 billion[6] - The insurance service income for the life insurance business was HKD 32,470.53 million, representing a year-on-year increase of 4.7%[31] - The total insurance service income was HKD 55,874,723, with life insurance contributing HKD 32,470,529 and property insurance (domestic and overseas) contributing HKD 19,477,442 combined[132] - The insurance premium income for the period was HKD 61,414.87 million, up from HKD 54,000.00 million, reflecting a growth rate of approximately 13.5%[116] Investment Performance - Net investment performance surged to HKD 7.503 billion, reflecting a significant year-on-year increase of 360.7%[6] - The total investment income for the first half of 2024 was HKD 37.242 billion, a year-on-year increase of 57.1%[12] - The annualized total investment return rate improved to 5.27%, up 1.38 percentage points year-on-year[12] - The group's net investment income for the first half of 2024 was HKD 24,500.78 million, up 10.8% from HKD 22,113.41 million in the same period of 2023[69] - The total investment return for the group was HKD 37,241,973, with significant contributions from interest income and other investment returns[132] Assets and Liabilities - Total assets grew to HKD 1,640.4 billion, marking an 8.7% increase from the previous year[6] - The total assets as of June 30, 2024, amounted to HKD 1,640,354.99 million, reflecting an 8.7% growth from HKD 1,509,497.49 million at the end of 2023[20] - The company's total liabilities increased to HKD 1,508,033,380 from HKD 1,376,901,834 at the end of 2023[112] - The total liabilities as of June 30, 2024, were HKD 1,508,033,380, with insurance contract liabilities accounting for HKD 1,325,033,437[134] Equity and Shareholder Returns - The group’s total equity as of June 30, 2024, was HKD 132,321.61 million, a slight decrease of 0.2% from HKD 132,595.65 million at the end of 2023[20] - The net asset value attributable to shareholders was HKD 132,321,606, slightly down from HKD 132,595,654 at the end of 2023[114] - The company declared a dividend of HKD 1,078.21 million for the period, consistent with the previous year, reflecting stable shareholder returns[116] - The company proposed a final dividend of HKD 0.30 per share, totaling HKD 1,078,206,000, compared to HKD 0.26 per share and HKD 934,445,000 in 2023[168] Operational Efficiency - The comprehensive cost ratio for property insurance business was 97.0%, with original premium income increasing by 4.3%[11] - The life insurance business's insurance service expenses decreased by 6.1% to HKD 21,878.98 million from HKD 23,288.15 million[32] - Total employee costs (excluding retirement plan contributions) for the financial period were HKD 6.855 billion, a decrease of 13.6% from HKD 7.931 billion in the first half of 2023[82] Strategic Initiatives - The company aims to enhance its international operations and improve service quality while focusing on risk prevention and compliance[85] - The company plans to optimize its business structure and enhance cost efficiency through innovation and talent development[88] - The group will continue to expand its personal and commercial pension businesses, aiming to solidify its first-mover advantage in the third pillar of retirement[88] - The company is committed to digital transformation and improving operational efficiency to support the development of the Greater Bay Area[92] Market Position and Competition - The market share of Taiping Life decreased to 4.2% from 4.8% year-on-year, reflecting a decline in competitive positioning[43] - The number of individual customers for Taiping Life decreased by 464,760 to 14,709,271 as of June 30, 2024, compared to 15,174,031 in the previous year[43] - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[116] Challenges and Risks - The company reported a net impairment loss of HKD 1,223,973,000, an increase of 67.2% compared to HKD 731,742,000 for the same period in 2023[154] - The total expenses related to insurance services were HKD 43,148,387, highlighting the operational costs associated with maintaining service levels[132] - The group’s performance in the reinsurance segment showed a net expense of HKD 1,477,021, indicating ongoing challenges in that area[132]

投资逻辑 中国太平资负两端弹性充足，居民储蓄意愿强烈叠加报行合一政 策下，预计 2024NBV 有望实现 30%左右增长，预计将快于其他保险 公司，且公司 23 年业绩发布会指出资产端历史风险已基本出清， 轻装上阵，利润高增可期。 寿险：战略稳定性强，渠道、客户、产品三端均具备差异化竞争 优势。核心管理层任职期长且为内部晋升，为公司战略的连续性 与稳定性提供支撑，行业深度调整期公司整体采取跟随战略，未 进行大刀阔斧的改革，2018-2022 年 NBV4 年复合增速-13%表现优 异，上市同业分别为国寿-8%、人保寿-17%、平安-21%、太保-24%、 新华-33%。①渠道端：个险坚持以人力发展作为公司成长最主要 的驱动因素，高度重视组织建设。②客户端：2001 年即前瞻性提 出"三高"策略，提升中高端客户服务能力、抢占中高端市场份 额。③产品端：自 2006 年起，公司便已将续期保费管理提到了重 要高度，2023 年个银 13/25 个月继续率均高于 90%，显著优于上 市同业，为差异化月缴产品的运营提供支撑。 财险：境内业务盈利能力待改善，境外业务表现较好。太平财险 整体规模较小，2023 年利润贡献不 ...

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]