Investment Rating - The report maintains a "BUY" rating for the company, indicating a potential return of over 15% over the next 12 months [14]. Core Insights - The company reported a strong performance in Life OPAT, with a year-on-year increase of 6.1% to RMB 27.6 billion, surpassing forecasts. Group OPAT rose 2.5% YoY to RMB 34.4 billion, and net profit increased significantly by 64.9% YoY to RMB 45.0 billion, exceeding profit alerts by 55%-70% [1]. - The company achieved a notable 57.7% increase in NBV on a like-for-like basis, despite revising down long-term investment return assumptions by 50 basis points to 4.0% [1][9]. - The report highlights the insurer's effective asset/liability management and strong fundamentals, positioning it favorably against peers [1]. Financial Performance - For FY24, net profit is projected at RMB 46.4 billion, with EPS expected to be RMB 4.67. The consensus EPS for FY25 is RMB 4.29, indicating a slight downward revision from previous estimates [2][9]. - The company's P/B ratio is expected to decline from 0.8 in FY24 to 0.7 in FY25, reflecting a more attractive valuation [2][12]. - The combined ratio for P&C insurance is projected to be 98.6% for FY24, indicating a slight deterioration compared to the previous year [12]. Valuation Metrics - The target price for the company is set at HK$34.00, representing a 37.1% upside from the current price of HK$24.80 [2][10]. - The stock is trading at 0.54x FY25E P/EV and 1.05x P/B, suggesting it is undervalued relative to its embedded value [10][12]. - The report notes a significant increase in total investment income, which soared 131% YoY to RMB 120.4 billion, driven by higher dividends and fair value gains [8]. Share Performance - The company's market capitalization is approximately HK$238.6 billion, with a 52-week high of HK$33.15 and a low of HK$14.14 [3]. - Over the past month, the stock has appreciated by 7.8%, outperforming the market [5].

Financial Performance - For the year 2024, the group achieved operating revenue of CNY 404.09 billion, a year-on-year increase of 24.7%, with insurance service revenue at CNY 279.47 billion, up 5.0%[4] - The net profit attributable to shareholders reached CNY 44.96 billion, reflecting a significant year-on-year growth of 64.9%[4] - New business value for the year was CNY 13.26 billion, representing a year-on-year increase of 20.9%, with a new business value rate of 16.8%, up 3.5 percentage points[6] - The company reported a significant increase in investment income, reaching CNY 26.91 billion, a 281.5% increase compared to the previous year, driven by securities trading gains and increased dividends[16] - The company achieved total operating revenue of CNY 404.09 billion in 2024, a year-on-year increase of 24.7%, with insurance service revenue reaching CNY 279.47 billion, up 5.0% year-on-year[23] - Net profit for the group was CNY 44.96 billion, reflecting a significant year-on-year growth of 64.9%, while operating profit increased by 2.5% to CNY 34.43 billion[23] - The company reported a net profit for 2024 of CNY 35.821 billion, an increase of 83.4% year-on-year from CNY 19.532 billion[54] - The net profit attributable to the parent company's shareholders for 2024 reached RMB 44,960 million, a 64.9% increase from RMB 27,257 million in 2023, primarily due to increased investment income and fair value changes[139] Asset Management - The group’s total assets under management reached CNY 3,542.66 billion, an increase of 21.2% compared to the previous year[4] - The company’s total assets under the "buyback financial assets" category increased by 288.4% to CNY 10.91 billion, reflecting a substantial change due to timing factors[16] - The company reported total assets of CNY 2,834,907 million as of December 31, 2024, an increase from CNY 2,343,962 million in 2023, representing a growth of approximately 20.9%[199] - The total amount of reinsurance contract assets increased to RMB 46,081 million in 2024 from RMB 39,754 million in 2023, which is an increase of about 15.5%[199] - The company's total liabilities increased by 21.2% to CNY 2,516,426 million, also due to business growth[146] Investment Performance - The comprehensive investment return rate for the group was 6.0%, up 3.3 percentage points year-on-year[6] - The group’s investment asset comprehensive return rate was 6.0%, an increase of 3.3 percentage points compared to the previous year[23] - The total investment return rate increased to 5.6%, up from 2.6% in the previous year[32] - The total investment income surged to RMB 100.576 billion, representing a significant increase of 174.0% compared to RMB 36.708 billion in 2023[54] - The company achieved a net investment income of RMB 82.799 billion in 2024, a year-on-year increase of 6.5%, primarily due to growth in dividend and interest income[99] Customer Growth and Market Position - The number of customers reached 183 million by the end of 2024, an increase of 3.31 million from the previous year[23] - The number of individual customers for the group reached 181 million, an increase of 1.7% year-on-year[108] - The number of individual customers holding two or more policies increased to 41.93 million, a growth of 6.0%[109] - The company is committed to expanding its insurance coverage and improving service quality, particularly in the areas of health and elderly care insurance[21] Strategic Initiatives - The company plans to focus on strategic areas such as "AI+" and internationalization to drive high-quality development in the future[10] - The company aims to enhance its risk management capabilities in response to increasing climate change risks and the growing demand for health and elderly care services due to an aging population[10] - The company is advancing its internationalization strategy, establishing a strong presence in Hong Kong and expanding its overseas business and service networks[13] - The company plans to deepen its health and wellness strategy, focusing on commercial health insurance and enhancing online and offline service integration[12] ESG and Sustainability - The company’s ESG rating improved to AA, leading the domestic insurance industry, and it received the highest rating for information disclosure from the Shanghai Stock Exchange for 11 consecutive years[5] - The company has registered two green bond investment plans, aligning with its ESG strategy[106] - The company has signed multiple international sustainability agreements, achieving an MSCI ESG rating upgrade to AA in 2024[118] - The company has implemented a carbon footprint visualization platform and engaged over 53 million users in a low-carbon behavior incentive program across 333 cities[124] - The company has committed to sustainable development goals, integrating ESG principles into its corporate values and operational practices[115] Risk Management - The company aims to enhance its risk management capabilities and optimize its governance structure to ensure sustainable development and effective risk control[19] - The company has established reinsurance agreements with leading firms to mitigate concentration risk, ensuring robust risk management[152] - The company implemented ESG risk management policies, incorporating climate scenario analysis and stress testing into its risk management framework[135] Product and Service Innovation - The company continues to enhance its product innovation capabilities, focusing on health protection, retirement education, and wealth inheritance solutions[45] - The company is focusing on product and model innovation to support the construction of a modern industrial system, including the launch of multiple industry-first technology insurance products[20] - The company has developed 34 innovative green insurance products by the end of 2024, with green insurance coverage exceeding 147 trillion yuan[120] Financial Governance - The company’s board of directors includes both executive and non-executive members, ensuring a diverse governance structure[184] - The company maintained an external director ratio of 87% and a female director ratio of 27% in its board, enhancing decision-making and minority shareholder protection[133] - The company’s internal audit covered all levels of the organization, ensuring 100% coverage of senior management every three years[134]

Investment Rating - The report maintains a "BUY" rating for the company, with a revised 12-month target price of HK$35.5, implying a 0.5x FY24E P/Group EV and 1.1x FY24E P/BV [1][4]. Core Insights - The company reported a significant increase in NPAT, up 65.5% YoY to RMB38.3 billion, with 3Q NPAT growing 173.6% YoY to RMB13.2 billion, driven by increased investment income and net fair value gains [1]. - Headline NBV rose 37.9% YoY to RMB14.2 billion in 9M24, with 3Q NBV on a like-for-like basis surging 75.3% YoY to RMB5.2 billion, attributed to margin expansions and a recovery in regular-paid new business sales [1][4]. - The company expects strong par sales momentum to continue into FY25, with participating policy sales gaining traction prior to a settlement rate cut [1][4]. Financial Performance - For FY24, the company anticipates a 37% YoY increase in headline NBV and NPAT/OPAT growth of 57%/3% YoY [1]. - EPS forecasts for FY24-26 have been revised up by 29%/6%/3% to RMB4.45/3.93/4.25, reflecting a more certain outlook for profitability and NBV growth [1][4]. - The NBV margin is expected to rise to 23.0% in 3Q24, up 5.9 percentage points YoY, driven by elevated sales of floating interest rate products and strengthened regular-paid new sales [1][4]. Investment Income - The company reported net fair value gains of RMB21.2 billion in 3Q24, a significant recovery from a net loss of RMB7.25 billion in 3Q23, benefiting from a rally in the equity market [1][4]. - The net investment yield landed at 3.9% in 9M24, with total investment yield at 6.3%, showing a positive trend driven by the equity market performance [1][4]. Valuation Metrics - The stock is currently trading at 0.4x FY24E P/EV and 0.9x FY24E P/BV, which is above the 3-year historical average [1][4]. - The report indicates a target valuation of RMB260.6 billion, with an implied P/EV of 0.55x and an implied P/BV of 1.12x [5].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised from HKD 25 to HKD 32, indicating a potential upside of 16.6% [1][2][4]. Core Insights - The company has shown robust earnings performance, with a significant year-on-year increase in net profit of 65.5% for the first three quarters, aligning with prior earnings forecasts [1]. - The new business value has increased by 37.9% year-on-year, with a new business value rate of 20.1%, up by 6.2 percentage points compared to the previous year [1][2]. - The individual insurance channel's quality continues to improve, with a 3.3% increase in premium scale, primarily driven by new business contributions from agents [1][2]. Financial Performance Summary - For the fiscal year ending December 31, 2022, the company reported total revenue of RMB 332,140 million, with a projected revenue of RMB 405,133 million for 2024, reflecting a year-on-year growth of 25.1% [3][9]. - The net profit for 2022 was RMB 37,381 million, with an expected increase to RMB 46,099 million in 2024, indicating a growth rate of 69.1% [3][9]. - The earnings per share (EPS) is projected to rise from RMB 3.89 in 2022 to RMB 4.79 in 2024, representing a significant increase [3][9]. Business Segment Insights - The property and casualty insurance segment saw a premium income growth of 7.7%, with a combined cost ratio of 98.7%, which is stable year-on-year but has increased by 1.6 percentage points compared to the first half of the year [2][5]. - Investment income has significantly increased, with total investment income rising to a rate of 4.7%, up by 2.3 percentage points year-on-year, primarily due to higher stock investment returns [2][5]. Valuation Metrics - The company’s price-to-earnings (P/E) ratio is projected to be 5.2 for 2024, indicating a favorable valuation compared to its historical performance [3][9]. - The price-to-embedded value (P/EV) is expected to be 0.4 in 2024, suggesting that the stock is undervalued relative to its embedded value [3][9].

Financial Performance - Operating revenue for Q3 2024 reached RMB 115,930 million, an increase of 44.2% compared to Q3 2023[3] - Net profit for Q3 2024 was RMB 13,178 million, reflecting a significant increase of 173.6% year-over-year[3] - Net profit excluding non-recurring gains and losses for Q3 2024 was RMB 13,173 million, up 174.2% from the same period last year[3] - Basic earnings per share for Q3 2024 were RMB 1.37, up 173.6% year-over-year[3] - Diluted earnings per share for Q3 2024 were also RMB 1.37, reflecting the same growth rate as basic earnings[3] - Net profit for the group reached RMB 238.31 billion, representing a significant year-on-year growth of 65.5%[10] - Net profit attributable to shareholders of the parent company increased to RMB 38,310 million, up 65.3% from RMB 23,149 million year-over-year[24] - Total comprehensive income for the first nine months of 2024 was RMB 34,626 million, compared to RMB 18,458 million in the same period of 2023, representing an increase of 87.5%[24] Assets and Liabilities - Total assets as of September 30, 2024, amounted to RMB 2,684,461 million, representing a 14.5% increase from December 2023[3] - Total liabilities rose to RMB 2,384,487 million in 2024, compared to RMB 2,076,258 million in 2023[23] - Insurance contract liabilities increased significantly to RMB 2,155,399 million in 2024 from RMB 1,872,620 million in 2023[23] - Shareholders' equity at the end of Q3 2024 was RMB 273,334 million, a 9.5% increase compared to the end of 2023[3] - Shareholders' equity totaled RMB 299,974 million as of September 30, 2024, compared to RMB 267,704 million at the end of 2023[23] - Cash and cash equivalents increased to RMB 38,122 million in 2024 from RMB 31,455 million in 2023[22] - Total assets increased slightly to RMB 144,392 million as of September 30, 2024, compared to RMB 143,846 million at the end of 2023, reflecting a growth of 0.4%[26] Revenue and Premium Income - For the first three quarters of 2024, the company achieved insurance service revenue of RMB 209.41 billion, a year-on-year increase of 2.3%[10] - The life insurance segment reported a premium income of RMB 230.06 billion, up 3.3% year-on-year, while new business value surged by 37.9% to RMB 14.24 billion[11] - The agent channel generated a premium income of RMB 179.15 billion, reflecting a year-on-year increase of 4.1%, with new premium income rising by 16.3% to RMB 33.83 billion[12] - The property insurance segment recorded a premium income of RMB 159.82 billion, a year-on-year growth of 7.7%, with motor vehicle insurance contributing RMB 78.13 billion, up 3.3%[16] - The company received cash from insurance premiums totaling RMB 374,107 million, up from RMB 349,121 million, reflecting a growth of 7.2%[25] Investment Performance - The company’s total investment assets reached RMB 2,584.28 billion, an increase of 14.9% compared to the previous year[17] - The net investment yield for the company was 2.9%, a slight decrease of 0.1 percentage points year-on-year, while the total investment return rate improved by 2.3 percentage points to 4.7%[17] - Total investment return rate increased to 4.7% in 2024 from 2.4% in 2023, representing a rise of 2.3 percentage points[19] - Investment income surged to RMB 14,595 million, compared to RMB 6,039 million in the previous year, marking an increase of 142.5%[24] - Investment income for the first nine months of 2024 was RMB 9,617 million, down 8.1% from RMB 10,464 million in the same period of 2023[28] Cash Flow - The net cash flow from operating activities for the first nine months of 2024 was RMB 128,747 million, an increase of 16.0% year-over-year[3] - Cash flow from operating activities generated RMB 128,747 million, an increase of 16.0% from RMB 110,992 million in the same period last year[25] - Cash flow from investing activities showed a net outflow of RMB 127,299 million, compared to a net outflow of RMB 100,072 million in the previous year[25] - The company reported a cash flow from operating activities net outflow of RMB 921 million for the first nine months of 2024, compared to an outflow of RMB 883 million in the same period of 2023[29] - Cash flow from investing activities generated a net inflow of RMB 10,339 million in the first nine months of 2024, down 32.4% from RMB 15,272 million in the same period of 2023[29] Shareholder Information - The company reported a total of 94,693 shareholders at the end of the reporting period, with a notable increase in the number of foreign institutional shareholders[8] Strategic Focus - The company is focusing on sustainable high-quality development and enhancing risk management services, particularly in the agricultural insurance sector[15] - The company’s new product development and market expansion strategies are aimed at improving service quality and customer experience in the life insurance sector[11] - The company aims to enhance its market expansion strategies and product development in the upcoming quarters[20] - Future outlook includes a focus on new technologies and potential mergers and acquisitions to drive growth[20]

Financial Performance - China Pacific Insurance reported its interim financial results for 2024, with a focus on operational performance and strategic developments[4]. - The interim financial report for 2024 has not been audited, indicating a preliminary assessment of the company's financial health[7]. - Total revenue for the group reached RMB 194,634 million, an increase of 10.9% year-on-year[12]. - Net profit attributable to shareholders of the parent company was RMB 25,132 million, up 37.1% compared to the previous year[14]. - New business value for life insurance was RMB 9,037 million, reflecting a growth of 22.8%[14]. - The group's embedded value increased to RMB 568,766 million, representing a 7.4% rise[14]. - The comprehensive solvency adequacy ratio for the group was 251%, down 6 percentage points from the previous period[14]. - The total investment return rate for the group was 2.7%, an increase of 0.7 percentage points year-on-year[14]. - The company achieved total operating revenue of RMB 194.634 billion for the first half of 2024, representing a year-on-year growth of 10.9%[24]. - Net profit for the company reached RMB 25.132 billion, marking a 37.1% increase compared to the same period in 2023[34]. - The company's cash flow from operating activities amounted to RMB 89.925 billion, reflecting a 5.5% growth year-on-year[34]. - The total assets of the company as of June 30, 2024, were RMB 2,553.488 billion, an increase of 8.9% from the end of 2023[34]. - The company reported a basic earnings per share of RMB 2.61 for the first half of 2024, up 37.1% from RMB 1.91 in the same period last year[34]. Governance and Management - The company held its 10th Board of Directors' fifth meeting on August 29, 2024, where the interim report was approved by 11 out of 13 directors present[7]. - The report outlines the governance structure and shareholder information, ensuring transparency in operations[3]. - The company is committed to environmental and social responsibility, as indicated in its governance report[3]. - The company continues to optimize its governance structure to ensure effective risk management and sustainable growth[20]. - The company has established a diversified entrusted investment management structure, primarily utilizing internal managers from China Pacific Insurance and supplementing with external managers, including fund companies and securities asset management institutions[148]. - The company appointed Fu Fan as the chairman of the board in December 2023, with regulatory approval received in January 2024[170]. - Zhao Yonggang was appointed as the president in December 2023, with his qualifications approved in January 2024[173]. - The board consists of 13 members, including 2 executive directors and 5 independent non-executive directors[169]. - The company has a total of 11 senior management personnel, including the chairman, president, and vice presidents[172]. Customer and Market Engagement - The number of customers reached 181,310 thousand, an increase of 1,441 thousand from the previous year[12]. - The company is focusing on digital finance and big data strategies to enhance service capabilities and improve customer experience[19]. - The company is focusing on enhancing business quality management, with policy continuation rates continuously improving[51]. - The company has established 15 "Tai Bao Home" locations across 13 cities, with a continuous increase in resident numbers[26]. - The company aims to enhance its digital transformation by leveraging big data and integrating digital technologies into its operations[28]. - The company is focusing on high-quality development through innovations in technology finance, green finance, and digital finance, while strengthening risk management capabilities[68]. Investment and Asset Management - Investment assets increased to RMB 2,456,027 million as of June 30, 2024, up from RMB 2,250,073 million at the end of 2023, reflecting a growth of approximately 9.1%[33]. - The total assets under management reached RMB 3.26 trillion, an increase of 11.7% compared to the end of the previous year[23]. - The company’s alternative investment assets under management reached approximately RMB 150 billion, maintaining a leading position in the industry[99]. - The company’s annuity asset management scale exceeded RMB 730 billion, reflecting a growth of 7.1% from the end of the previous year[102]. - The company continues to enhance its investment management capabilities, focusing on sustainable value creation for clients[99]. Environmental and Social Responsibility - The company is committed to sustainable development and enhancing its ESG capabilities to support social and economic sustainability[17]. - The company provided green insurance coverage amounting to approximately CNY 56.1 trillion in the first half of 2024, including five innovative products such as the EU carbon emission cost index insurance for the shipping industry[184]. - The company launched a series of ecological carbon sink insurance products covering forest, grassland, and wetland carbon sinks, contributing to ecological civilization construction[184]. - The company has integrated ESG factors into its supplier selection and evaluation processes[185]. - The company aims to enhance its rural development initiatives and explore long-term mechanisms for rural revitalization[185]. Shareholder Information - China Pacific Insurance is listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange, with respective stock codes 601601 and 02601[10]. - The company has a total of 9,620,341,455 shares issued as of June 30, 2024, including 6,845,041,455 A shares and 2,775,300,000 H shares[1]. - The largest shareholder, BlackRock, has multiple entities holding shares, with a total of 702,985 H shares held by BlackRock Investment Management, LLC[1]. - The company has a diverse shareholder base, with significant stakes from various investment management firms[1]. - The total number of shareholders at the end of the reporting period is 96,851, with 92,880 being A share shareholders and 3,971 being H share shareholders[164]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements related to future plans and strategies[4]. - The company maintains a comprehensive credit risk management system, ensuring effective control over credit risks across its investment portfolio[92]. - The company is committed to maintaining a prudent risk management approach to navigate the complexities of the current international environment and regulatory landscape[117]. - The company has established a unified risk management framework, with the board of directors bearing ultimate responsibility and management leading directly, covering all institutions and positions[182].

Investment Rating - The report maintains a "BUY" rating for CPIC, with a revised target price of HK$28.3, up from HK$24.8, indicating a potential upside of 37.7% from the current price of HK$20.55 [3][5]. Core Insights - CPIC reported a robust 1H24 performance, with a net profit growth of 37.1% YoY to RMB 25.1 billion, and a nearly doubled net profit of RMB 13.3 billion in 2Q24, outperforming peers in the Chinese insurance sector [2][8]. - The life insurance segment's new business value (NBV) increased by 22.8% YoY to RMB 9.0 billion in 1H24, supported by margin expansion and a favorable product mix [2][10]. - The property and casualty (P&C) segment improved its combined ratio (CoR) by 0.8 percentage points to 97.1% in 1H24, driven by a reduction in claims ratio [2][8]. Financial Performance - Group net profit for 1H24 reached RMB 25.1 billion, with life and P&C net profits growing 43.0% and 18.6% YoY, respectively [2][8]. - Total investment income surged by 46.5% YoY, with fair value gains increasing 2.93 times in 1H24, attributed to higher allocations in FVOCI equities and FVTPL assets [2][5]. - The life insurance revenue for 1H24 was RMB 137.0 billion, reflecting a 2.2% increase YoY, while P&C insurance revenue rose by 4.2% YoY to RMB 93.1 billion [8][11]. Valuation Metrics - The report's sum-of-the-parts (SOTP) valuation indicates a target price of HK$28.3, implying a price-to-embedded value (P/EV) of 0.48x and a price-to-book value (P/BV) of 0.89x for FY24E [5][7]. - The stock is currently trading at a P/EV of 0.31x and a P/BV of 0.64x, suggesting a favorable valuation compared to peers [5][7]. Growth Projections - The report anticipates sustained mid-to-high teen growth in FY24E NBV, driven by margin expansion and a shift towards participating policies [2][5]. - The number of core agents stabilized at 60,000 in 1H24, contributing to a 21.5% YoY increase in agency NBV [2][10]. - Management expects traditional and participating products to balance in the product mix, with first-year premiums projected to maintain growth despite recent declines [2][11].

Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (CPIC) and identifies it as an industry favorite [4][8]. Core Insights - CPIC delivered strong performance in the first half of 2024, with net profit increasing by 37.1% year-on-year to RMB 25.1 billion, and second-quarter net profit reaching RMB 13.3 billion, reaffirming its position as an industry leader [1][11]. - The report raises the target price to HKD 28.3 from HKD 24.8, indicating a potential upside of 37.7% from the current price of HKD 20.55 [4][7]. Financial Performance Summary - **Net Profit**: For 1H24, net profit was RMB 25.1 billion, up 37.1% from RMB 18.3 billion in 1H23. In 2Q24, net profit was RMB 13.3 billion, a 99.4% increase from RMB 6.7 billion in 2Q23 [1][11]. - **New Business Value (NBV)**: NBV for 1H24 grew by 22.8% year-on-year to RMB 9 billion, with a 13.5% increase in 2Q24 compared to the previous year [2][14]. - **Investment Income**: Total investment income rose by 46.5% year-on-year, with fair value gains increasing 2.93 times, supported by a shift in asset allocation towards high-yield stocks [1][3]. Business Segments Performance - **Life Insurance**: Life insurance net profit increased by 43.0% to RMB 20 billion, driven by robust underwriting and better-than-expected investment returns [1][11]. - **Property and Casualty (P&C) Insurance**: P&C net profit grew by 18.6% to RMB 4.8 billion, with a combined ratio (CoR) improvement to 97.1% [3][11]. - **Distribution Channels**: The agency channel saw a 21.5% increase in NBV, while the bank channel's NBV rose by 26.6% [2][14]. Valuation Metrics - The report's new target price implies a price-to-earnings (P/E) ratio of 0.4x and a price-to-book (P/B) ratio of 0.9x for FY24 [4][7]. - The expected return on equity (ROE) for FY24 is projected at 12.3% [9]. Market Position - CPIC's market share in the P&C insurance sector reached 12.3% as of June 2024, reflecting a 0.3 percentage point increase year-on-year [3][11].

Financial Performance - In the first half of 2024, the company achieved total revenue of CNY 194.634 billion, a year-on-year increase of 10.9%[1] - Insurance service revenue reached CNY 137.019 billion, growing by 2.2% year-on-year[1] - Net profit attributable to shareholders was CNY 25.132 billion, reflecting a 37.1% year-on-year increase[1] - The company reported a significant increase in fair value gains, amounting to RMB 20,945 million, compared to RMB 5,333 million in the previous year[110] - The total comprehensive income for the period was RMB 28,313 million, up from RMB 22,965 million in the same period of 2023[111] - The net profit for the six months ended June 30, 2024, was RMB 25,132 million, compared to RMB 18,332 million for the same period in 2023, representing a year-over-year increase of approximately 37.5%[116] Business Segments - New business value in life insurance grew by 22.8% year-on-year, with the new business value rate increasing by 5.3 percentage points to 18.7%[1] - The life insurance segment of the company reported original premium income of CNY 2.63 trillion, up 5.1% year-on-year, making it the third-largest life insurance company in China[6] - The health insurance segment reported revenue of RMB 1.25 billion and a net profit of RMB 0.043 billion in the first half of 2024[41] - The company launched several new products, including "Love Insurance" for critical illness and "Xinfu Nian Nian" for retirement, enhancing its service offerings across health, retirement, and wealth management[30] Investment Performance - The investment income for the first half of 2024 was CNY 6,893 million, reflecting a 57.5% increase from CNY 4,376 million in the same period of 2023[7] - The total investment income reached RMB 56.04 billion, representing a year-on-year growth of 46.5%[71] - The company achieved a net investment income of RMB 39.09 billion in the first half of 2024, a year-on-year increase of 1.7%[71] - The fair value change income surged by 292.7% to CNY 20,945 million, driven by fluctuations in the market value of trading financial assets[7] Asset Management - The total assets under management reached CNY 3.26 trillion, an increase of 11.7% from the end of the previous year[1] - The group’s investment assets reached RMB 3,263.010 billion, an increase of 11.7% from the end of the previous year, with a comprehensive investment return rate of 3.0%, up 0.9 percentage points[17] - The company is focusing on enhancing investment management capabilities and exploring innovative investment asset tools and strategies, while also improving risk management levels[62] Risk Management and Compliance - The company is committed to improving its risk management capabilities and optimizing its business structure and quality[4] - The company emphasizes risk management and maintaining a strong foundation for high-quality development amidst complex international environments[89] - The company has established reinsurance agreements with leading global reinsurers, including Swiss Re and Munich Re, to mitigate concentration risk[83] Corporate Strategy and Innovation - The company is focusing on enhancing digital transformation and integrating big data governance to improve operational efficiency[2] - The company plans to deepen the "Long Voyage" transformation in life insurance and enhance the quality of its agent workforce[3] - The company is actively pursuing innovation in health insurance and digital finance, aligning with national strategies for health and aging finance[11] - The company aims to innovate green financial products and services to support the green low-carbon transition of the economy[4] Customer and Market Presence - The number of customers reached 181.31 million, reflecting a 0.8% increase year-on-year, with an average of 2.33 policies per customer[19] - The company is focusing on enhancing the quality of its insurance products and improving policy retention rates, which have shown positive trends[23] - The company is focused on expanding its market presence and enhancing its product offerings through new technology development[107] Dividends and Shareholder Returns - The company has implemented a cash dividend distribution of RMB 1.02 per share for the year 2023, completed in July 2024[98] - The company distributed dividends totaling RMB 9,813 million during the first half of 2024, consistent with the previous year's distribution[121] Regulatory and Governance - The company has adhered to all provisions of the Corporate Governance Code during the reporting period[99] - The board of directors includes a diverse group of executive and independent non-executive members, ensuring robust governance[104] Future Outlook - The insurance industry is expected to benefit from rising household incomes and consumption confidence, leading to improved insurance demand[88] - The company aims to build an internationally influential first-class insurance financial service group, focusing on value-driven growth and enhancing professional capabilities[88]

Investment Rating - The report maintains a "BUY" rating for the company, with a new target price of HK$24.80, implying a 37.8% upside from the current price of HK$18.00 [4][6]. Core Insights - The company experienced a positive VNB growth of +30.7% YoY in 1Q24, outperforming peers such as China Life and Ping An [2]. - The net profit attributable to shareholders grew by +1.1% YoY to RMB 11.8 billion in 1Q24, marking a turnaround after three consecutive quarters of decline [2][9]. - The insurer's life underwriting focus has shifted back to agency distribution, with agency FYP increasing by +31.3% YoY [2][10]. - The bancassurance channel faced challenges, with FYP declining by -21.8% YoY, although this was an improvement from a -54.6% decline in the previous quarter [2][11]. - The report highlights the potential for margin expansion due to the ongoing Changhang Transformation initiated in 2022 [2][6]. Summary by Sections Financial Performance - The company's net profit for FY23 was RMB 27.9 billion, with an expected increase to RMB 32.2 billion in FY24 [3]. - The EPS is projected to rise from RMB 2.83 in FY23 to RMB 3.30 in FY24 [3][15]. - The company reported a total insurance revenue of RMB 266.2 billion in FY23, with an expected increase to RMB 281.6 billion in FY24 [14]. Valuation Metrics - The stock is currently trading at 0.29x FY24E P/EV and 0.61x FY24E P/BV, with the new target price implying 0.40x FY24E P/EV and 0.84x FY24E P/BV [6][7]. - The report indicates a conglomerate discount of 10% applied to the valuation [5]. Operational Metrics - The company's first-year premiums (FYP) for 1Q24 were RMB 32.8 billion, a slight increase of +0.4% YoY [2][11]. - The agency channel's FYRP and FYSP grew by +25.4% and +44.5% YoY, respectively, indicating a strong recovery in agency productivity [2][10]. - The combined ratio for P&C insurance improved slightly to 98.0% in 1Q24 from 98.4% in 1Q23 [12]. Investment Performance - The net investment results showed a decline of -26.1% YoY, primarily due to a drop in net interest income and a shift from a gain to a loss in investment income [2][9]. - The total investment assets increased by 4.2% YoY to RMB 2,344.8 billion [13]. Solvency Ratios - The core solvency ratio for CPIC Life was reported at 107.9% in 1Q24, down from 117.0% in 4Q23 [11]. - The comprehensive solvency ratio was 195.8% in 1Q24, reflecting a decrease from 209.8% in the previous quarter [11].