Financial Performance - Total premium income amounted to RMB 671.46 billion, with embedded value exceeding RMB 1.4 trillion, maintaining industry leadership [4]. - Net profit attributable to shareholders surpassed RMB 100 billion, reaching RMB 106.935 billion, marking a significant increase [4]. - Total revenue for 2024 reached RMB 528.63 billion, a 53.3% increase from RMB 344.75 billion in 2023 [11]. - Pre-tax profit surged to RMB 115.21 billion, reflecting a 158.5% growth compared to RMB 44.58 billion in the previous year [11]. - Net profit attributable to shareholders was RMB 106.94 billion, up 131.6% from RMB 46.18 billion in 2023 [11]. - Total premium income reached RMB 671.46 billion, a year-on-year increase of 4.7% [22]. - Total investment income significantly increased to RMB 308.25 billion, up 150.4% from the previous year [22]. - The company's insurance service income for 2024 was RMB 208.161 billion, a decrease of 2.0% from RMB 212.445 billion in 2023 [53]. - The underwriting financial profit for 2024 was RMB 209.952 billion, representing a significant increase of 64.1% from RMB 127.923 billion in 2023 [57]. - The net profit for the year ended December 31, 2024, is RMB 108,940 million, a significant increase from RMB 47,547 million in 2023, representing a growth of approximately 128.6% [97]. Assets and Liabilities - Total assets reached RMB 6.77 trillion, and investment assets reached RMB 6.61 trillion, showing rapid growth [4]. - Total assets increased by 16.7% to RMB 6,769.55 billion, compared to RMB 5,802.09 billion in 2023 [11]. - Investment assets rose to RMB 6,611.07 billion, marking a 16.8% increase from RMB 5,659.25 billion in 2023 [11]. - Total liabilities grew by 17.6% to RMB 6,248.30 billion, up from RMB 5,315.05 billion in 2023 [11]. - The company's equity attributable to shareholders increased to RMB 509,675 million in 2024 from RMB 477,093 million in 2023 [96]. - The total amount of insurance contract financial changes was RMB 595,045 million in 2024, up from RMB 259,160 million in 2023, representing a substantial increase of about 129.5% [84]. Investment and Returns - Total investment income was RMB 308.251 billion, with an investment return rate of 5.50% [7]. - In 2024, the company achieved net investment income of RMB 195.674 billion, an increase of RMB 9.808 billion compared to 2023, with a net investment yield of 3.47%, down 23 basis points year-on-year [49]. - The company's total comprehensive income for 2024 is RMB 52,253 million, compared to RMB 25,848 million in 2023, indicating a growth of approximately 102% [97]. - The actual investment return difference for 2024 is RMB 64.061 billion, indicating a positive variance from investment assumptions [117]. - The company's overall investment return rate is assumed to be 4%, with a risk-adjusted discount rate of 8% for typical business operations [113]. Dividends and Shareholder Returns - The company distributed a total dividend of RMB 18.372 billion for the year, maintaining a high and stable dividend level [4]. - The total dividend for the fiscal year 2023 was RMB 12,154 million, with a proposed final dividend of RMB 12,719 million for 2024 [92]. - The company declared dividends of RMB 17,807 million in 2024, up from RMB 13,850 million in 2023, marking an increase of approximately 28.3% [99]. - The company proposed a final dividend of RMB 0.45 per share, totaling approximately RMB 12.719 billion, subject to shareholder approval on June 26, 2025 [122]. Business Operations and Strategy - The company is focusing on digital transformation, enhancing capabilities in big data and artificial intelligence [8]. - The company aims to enhance risk management and compliance systems in response to stricter regulatory trends [10]. - The company is committed to high-quality development and innovation-driven growth as part of its strategic goals for 2025 [10]. - The company is actively exploring innovative models in the insurance and investment sectors, enhancing cooperation with asset management subsidiaries [33]. - The company plans to enhance its market expansion strategies and invest in new product development [104]. Insurance and Claims - The company provided insurance coverage exceeding RMB 200 trillion, with nearly 25 million claims processed [5]. - The number of long-term effective insurance policies reached 326 million [20]. - The policy retention rate for 14 months improved to 91.60%, an increase of 1.20 percentage points year-on-year [22]. - The company has developed and upgraded over 100 new insurance products in 2024 to meet the growing demand for insurance protection and wealth management [37]. ESG and Corporate Governance - The company’s ESG rating improved to A level, reflecting strong performance in environmental, social, and governance practices [5]. - The company maintained an A-class rating in comprehensive risk assessment for 26 consecutive quarters [17]. - The board of directors consists of four executive directors, three non-executive directors, and four independent non-executive directors as of the announcement date [132].

Investment Rating - The report maintains a "BUY" rating for China Life, with a target price of HK$20.00, indicating a potential upside of 38.1% from the current price of HK$14.48 [3][8]. Core Insights - China Life expects a significant increase in net profit for FY24, projecting growth of 122%-144% YoY under IFRS, translating to RMB56.2-66.4 billion, and 100%-120% YoY under ASBE, amounting to RMB51.2-61.4 billion. This is a decrease from the 174% increase observed in the year-to-3Q24 [1][8]. - The potential decline in 4Q net profit is attributed to investment volatilities, despite a strong capital market performance in 3Q24, which boosted total investment income by 152.4% YoY in the first nine months of FY24 [1][8]. - The company is adjusting its strategic asset allocation, increasing exposure to high-dividend yield stocks and balancing equity exposure between FVTPL and FVOCI [1][8]. Financial Performance Summary - For FY24, net profit is expected to range from RMB102.4 billion to RMB112.6 billion, with a projected net profit of RMB110.857 billion for FY24, a significant recovery from RMB47.547 billion in FY23 [2][9]. - EPS is forecasted to be RMB3.85 for FY24, a decrease from the previous estimate of RMB4.45, while FY25 and FY26 EPS are projected at RMB2.68 and RMB2.81 respectively [2][8]. - The company anticipates a 19.2% growth in NBV for FY24 and 9.2% for FY25, supported by a total premium growth of 4.7% YoY to RMB671.7 billion in FY24 [1][8]. Valuation Metrics - The stock is currently trading at 0.24x FY25E P/EV and 0.67x FY25E P/BV, with an expected annualized ROE of 21% in FY24 [1][8]. - The projected dividend yield for FY24 is 8.6%, reflecting an increase in DPS, although it may not match the earnings growth due to the unsustainable nature of net fair value gains [1][8].

Investment Rating - The report maintains a "BUY" rating for the company and raises the target price to HK$20.00 from HK$15.50, implying a 21.8% upside from the current price of HK$16.42 [1]. Core Insights - The company's 3Q net profit after tax (NPAT) increased significantly by 17.7% year-on-year to RMB66.2 billion, driven by net fair value gains, which surged 80 times year-on-year [1]. - The report revises FY24-26E EPS forecasts upward by 148%, 38%, and 31% to RMB4.45, RMB2.58, and RMB2.61 respectively, reflecting improved fundamentals and investment performance [1][3]. - The company is expected to achieve a 17% growth in new business value (NBV) for FY24, supported by margin expansions and a favorable product mix [1][3]. Summary by Sections Financial Performance - The company reported a total investment income (TII) of RMB261.4 billion in 9M24, a 152% increase year-on-year, with 3Q TII soaring 5.28 times year-on-year to RMB139.1 billion [1]. - In 9M24, NBV grew by 25.1% year-on-year, indicating strong growth momentum, particularly in 3Q24, where new business sales surged [1][3]. Valuation Metrics - The stock is currently trading at FY24E 0.41x P/EV and 0.91x P/BV, which are above the respective 3-year historical averages [1][4]. - The report indicates a fair value per share of HK$20.00 based on P/EV and P/B methodologies, reflecting a robust valuation outlook [4][13]. Growth Drivers - The company is expected to benefit from a favorable equity market environment, with a significant allocation to high-dividend yield stocks anticipated to smooth out profit volatility [1][10]. - The report highlights a stable agency force with improved productivity, contributing to the positive outlook for new business sales [1][3]. Future Outlook - Management anticipates a shift in product mix towards higher sum-assured whole life and participating products for FY25, which is expected to drive sales growth [1]. - The report projects continued margin expansion and a resilient NBV growth trajectory, supported by regulatory changes and improved underwriting product mix [1][3].

Financial Performance - Net profit attributable to shareholders of the parent company for Q3 2024 was RMB 66,245 million, a significant increase of 1,767.1% from RMB 3,548 million in the same period last year[3] - Operating revenue for Q3 2024 was RMB 192,964 million, representing a 124.7% increase compared to RMB 85,885 million in Q3 2023[3] - Basic and diluted earnings per share for Q3 2024 were RMB 2.34, up 1,767.1% from RMB 0.13 in the same period last year[3] - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 66,283 million, a 1,738.1% increase from RMB 3,606 million in Q3 2023[3] - Net profit attributable to shareholders for the first three quarters reached RMB 104.52 billion, up 173.9% year-on-year[14] - The group's operating profit for the first nine months of 2024 reached RMB 123,902 million, a significant increase from RMB 35,463 million in the same period of 2023, representing a growth of approximately 249%[22] - Net profit attributable to shareholders of the parent company for the first nine months of 2024 was RMB 104,523 million, compared to RMB 38,164 million in 2023, marking an increase of about 174%[22] - Basic and diluted earnings per share for the first nine months of 2024 were RMB 3.70, up from RMB 1.35 in the same period of 2023, reflecting a growth of approximately 174%[22] - The total comprehensive income attributable to shareholders of the parent company for the first nine months of 2024 was RMB 101,747 million, compared to a loss of RMB 20,923 million in 2023[24] Assets and Liabilities - Total assets reached RMB 6,481,554 million, an increase of 14.6% compared to the previous year's end of RMB 5,653,727 million[3] - The total liabilities increased to RMB 5,903,939 million as of September 30, 2024, compared to RMB 5,316,011 million at the end of 2023, an increase of about 11%[19] - The company's equity attributable to shareholders rose to RMB 566,704 million in 2024, up from RMB 327,784 million in 2023, indicating a growth of approximately 73%[19] - The total liabilities and equity amounted to RMB 6,481,554 million, reflecting a growth from RMB 5,653,727 million in 2023, an increase of around 14.6%[19] - The total assets of the group as of January 1, 2024, amounted to RMB 5,802,086 million, an increase of RMB 148,359 million from December 31, 2023[32] - The total liabilities of the group as of January 1, 2024, were RMB 5,315,052 million, a slight decrease from RMB 5,316,011 million at the end of 2023[33] - The total equity of the group as of January 1, 2024, was RMB 487,034 million, reflecting an increase of RMB 149,318 million from December 31, 2023[33] Cash Flow - Cash flow from operating activities for the year-to-date period was RMB 346,601 million, reflecting a 6.7% increase compared to RMB 324,982 million in the same period last year[3] - Cash flow from operating activities for the first nine months of 2024 amounted to RMB 688,885 million, an increase from RMB 670,752 million in 2023, indicating a growth of about 2%[26] - The group reported cash inflow from investment activities of RMB 1,835,051 million for the first nine months of 2024, compared to RMB 1,116,800 million in 2023, showing a growth of approximately 64%[29] - The net cash flow from investment activities for the first nine months of 2024 was RMB (2,150,519) million, compared to RMB (1,414,991) million in 2023, indicating a deeper cash outflow[29] - The group's cash inflow from financing activities for the first nine months of 2024 was RMB 45,373 million, compared to RMB 24,139 million in the same period of 2023, representing an increase of 88%[31] - The net cash flow from financing activities for the group in the first nine months of 2024 was RMB (149,637) million, a significant decrease from RMB (21,463) million in 2023[31] Shareholder Information - Total number of shareholders at the end of the reporting period: 77,988 A-share shareholders and 23,893 H-share shareholders[8] - The largest shareholder, China Life Insurance (Group) Company, holds 68.37% of the shares, totaling 19,323,530,000 shares[8] - HKSCC Nominees Limited, the second-largest shareholder, holds 25.92% of the shares, totaling 7,325,308,497 shares[8] - The third-largest shareholder, China Securities Finance Corporation Limited, holds 2.51% of the shares, totaling 708,240,246 shares[8] - The total number of shares held by the top ten shareholders with unrestricted shares amounts to 27,586,000,000 shares[9] - The top ten shareholders do not have any known relationships or agreements as per the regulations of the listed company acquisition management[10] - The total number of shares lent out and not yet returned by the top ten shareholders is 154,200 shares, which is 0.00% of the total share capital[11] Insurance and Investment Performance - Total premium for the first three quarters of 2024 reached RMB 608.25 billion, a year-on-year increase of 5.1%[15] - New single premium amounted to RMB 197.51 billion, with a slight increase of 0.4% year-on-year[15] - First-year regular premium was RMB 113.18 billion, reflecting a year-on-year growth of 6.8%[15] - Investment income for the first three quarters of 2024 was RMB 261.42 billion, a significant year-on-year increase of 152.4%[13] - Insurance service income rose to RMB 157,849 million in 2024, compared to RMB 136,439 million in 2023, marking an increase of 15.7%[20] Strategic Initiatives - The company is actively planning a new round of comprehensive reform to enhance product and business diversification[14] - The company plans to expand its market presence and invest in new technologies to enhance service offerings and operational efficiency in the coming quarters[20] - The company is focusing on strategic acquisitions to bolster its market position and diversify its product portfolio[20] - The sales force totaled 694,000, with a focus on enhancing professional and comprehensive capabilities[12]

Financial Performance - Total premium income reached RMB 489,566 million, reflecting a significant growth in the insurance sector[5]. - Net profit attributable to shareholders was RMB 38,278 million, a 5.9% increase year-on-year[6]. - Total investment income for the period was RMB 122,366 million, showcasing robust investment strategies[5]. - Cash flow from operating activities reached RMB 280,552 million, a 12.5% increase from the previous year[6]. - Total revenue for the period was RMB 234,235 million, reflecting a year-on-year increase of 25.7% from RMB 186,324 million[132]. - The company reported a net profit of RMB 175.3 million for the fiscal year 2023, with a dividend distribution of RMB 0.43 per share, amounting to approximately RMB 121.54 billion[101]. - The total comprehensive income after tax amounted to RMB 29,713 million, up from RMB 26,031 million year-on-year[133]. Assets and Liabilities - Total assets increased by 7.2% to RMB 6,222,638 million compared to the end of 2023[6]. - The company’s total liabilities increased by 7.6% to RMB 5,718,505 million, primarily due to an increase in insurance contract liabilities[6]. - The total insurance contract liabilities as of June 30, 2024, were RMB 5,417,061 million, an increase of 11.5% from RMB 4,859,175 million at the end of 2023[42]. - The total equity attributable to shareholders increased to RMB 493,834 million from RMB 477,093 million, reflecting a growth of approximately 3.5%[130]. Investment Performance - Investment income surged by 140.3% to RMB 56,736 million, driven by market fluctuations and proactive investment operations[9]. - The company’s total investment assets reached RMB 608,648.5 million, an increase of 7.5% compared to the end of 2023[34]. - The proportion of bond investments increased from 55.83% at the end of 2023 to 57.36% by mid-2024[34]. - The net investment yield for the first half of 2024 was 3.03%, a decrease of 28 basis points compared to the same period in 2023[36]. Business Growth - New business value for the first half of 2024 was RMB 32,262 million, indicating strong market performance[5]. - The number of effective long-term insurance policies stood at approximately 328 million[5]. - The individual insurance channel achieved total premiums of RMB 390.13 billion, a year-on-year increase of 7.7%[21]. - The company launched 41 new insurance products in the first half of 2024, enhancing product diversity and meeting various customer needs[30]. Risk Management - The solvency adequacy ratio was reported at 205.23%, indicating strong financial health[5]. - The company maintained an A rating in comprehensive risk assessment for 24 consecutive quarters, reflecting strong risk management[11]. - The company has implemented various measures to effectively manage and control risks, including macroeconomic, insurance, and market risks[124]. Customer Engagement and Services - The company provided risk protection of RMB 50.41 trillion for rural populations, enhancing rural insurance services[10]. - The health management service capabilities were enhanced, with over 100 service items covering various health management areas[29]. - The number of registered users on the China Life Insurance APP exceeded 150 million, steadily enhancing online reach capabilities[52]. Corporate Governance - The board of directors held 8 meetings and the supervisory board held 3 meetings during the reporting period, ensuring compliance with governance standards[98]. - The company has adhered to all principles outlined in the Corporate Governance Code during the reporting period[99]. - The independent directors have actively participated in decision-making and oversight, with no objections raised during the reporting period[114]. Future Outlook - Future outlook indicates a focus on expanding market presence and enhancing product offerings, although specific numerical guidance was not provided in the report[124]. - The company plans to focus on customer-centric strategies and improve service quality while ensuring compliance with risk management standards in the second half of 2024[60]. ESG Commitment - The company is actively promoting ESG practices and deepening low-carbon services and operations[11]. - The company has invested over RMB 470 billion in green projects, enhancing its commitment to sustainable development[57]. - The company is committed to enhancing its ESG governance framework and actively participating in the "dual carbon" strategy to promote sustainable development[54].

Investment Rating - The report maintains a "BUY" rating for China Life with a revised 12-month target price of HK$15.5, implying a 31.1% upside from the current price of HK$11.82 [4][6]. Core Insights - China Life reported strong first-half results with a year-on-year increase in new business value (NBV) of 18.6% to RMB32.3 billion and a 11.4% growth in embedded value (EV) to RMB1.4 trillion [2][11]. - Investment income surged 140.3% year-on-year to RMB56.7 billion, significantly contributing to a 27.6% increase in pre-tax profit to RMB47.9 billion in 1H24 [2][10]. - The bancassurance segment showed remarkable margin expansion, with NBV margin increasing by 13.4 percentage points to over 17% [2][11]. Financial Performance - Total investment assets reached a record high of RMB6.1 trillion, with a notable increase in fair value through other comprehensive income (FVOCI) stocks, which rose 131% from the beginning of the year to RMB34.1 billion [2][15]. - The company achieved a net investment yield of 3.33% and a total investment yield of 3.59% in 1H24, reflecting a positive investment variance in EV of RMB6.7 billion [10][15]. - The first-year regular premiums (FYRP) grew by 9.4% year-on-year to RMB42.6 billion, accounting for 43.8% of total FYRP in 1H24 [2][12]. Valuation Metrics - The stock is currently trading at 0.2x P/EV and 0.6x P/B for FY24E, indicating potential for a stock re-rating based on resilient financial results [6][8]. - The report highlights a target price of HK$15.5 based on a P/EV versus return on embedded value (ROEV) approach, reflecting improved underwriting and investment outcomes [6][8]. Business Segments - The agency channel remains the primary contributor to NBV, accounting for 90.8% of total NBV in 1H24, with a margin increase to 30.6% [11][12]. - The bancassurance channel experienced a significant decline in single-paid premiums, down 78.2% year-on-year, indicating a strategic shift towards higher-margin products [2][11]. Future Outlook - The company anticipates a rebound in investment income in the second half of 2024, supported by a low comparative base from the previous year [2][6]. - Management expects a diversification in product mix with a higher proportion of participating policies following recent interest rate cuts [2][11].

Investment Rating - The report maintains a "Buy" rating for China Life Insurance (2628 HK) with a target price of HKD 14.00, indicating a potential upside of 18.4% from the current closing price of HKD 11.82 [1][8]. Core Insights - The company's net profit attributable to shareholders increased by 10.6% year-on-year in the first half of 2024, with a significant recovery in Q2, where profits doubled compared to the same period last year [1]. - Premium income rose by 4.1% year-on-year, primarily driven by renewal premiums, while the structure of premiums improved, with a notable increase in 10-year and above regular premiums [1]. - The new business value grew by 18.6% year-on-year, although this growth rate is relatively lower compared to peers in the industry [1]. - Total investment income saw a substantial increase of 50% year-on-year, with an annualized net investment return of 3.03% [1]. Financial Overview - For the fiscal year ending December 31, 2022, the company reported total revenue of RMB 388.895 billion, with a projected revenue of RMB 454.408 billion for 2024, reflecting a year-on-year growth of 32.0% [4]. - The net profit for 2022 was RMB 66.680 billion, with an expected increase to RMB 54.795 billion in 2024, representing a year-on-year growth of 18.7% [4]. - The company's earnings per share (EPS) is projected to rise from RMB 1.63 in 2023 to RMB 1.94 in 2024 [4]. - The price-to-earnings (P/E) ratio is expected to be 5.5 in 2024, indicating a favorable valuation compared to historical levels [4]. Business Metrics - The report highlights that the 14-month persistency rate improved to 91.5%, up by 2.3 percentage points year-on-year, indicating better customer retention [1]. - The number of individual insurance agents remained stable at 629,000, suggesting a solid distribution network [1]. - The proportion of new business value from the individual insurance channel increased to 30.6%, up by 5.4 percentage points year-on-year [1].

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Financial Performance - Total premium reached RMB 489.566 billion, achieving the best historical level for the same period[2] - New business value amounted to RMB 32.262 billion, with embedded value exceeding RMB 1.4 trillion[2] - Net profit attributable to shareholders was RMB 38.278 billion, demonstrating strong development resilience[2] - Revenue for the first half of 2024 was RMB 234.235 billion, a 25.7% increase year-on-year[5] - Pre-tax profit grew by 27.6% to RMB 47.9 billion compared to the same period last year[5] - For the first half of 2024, the company's net profit attributable to shareholders was RMB 38.278 billion, representing a year-on-year increase of 5.9%[9] - Total premium income for the period was RMB 489.566 billion, an increase of 4.1% year-on-year, marking a historical high[9] - The new business value increased by 18.6% year-on-year, reaching RMB 32.262 billion, continuing to lead the industry[9] - The first-year premium income was RMB 97.294 billion, with ten-year and above first-year premium income rising by 9.4% to RMB 42.616 billion[9] - Total investment income for the first half of 2024 was RMB 122.366 billion, significantly higher than RMB 91.372 billion in the same period of 2023[10] - The net profit attributable to shareholders for the first half of 2024 was RMB 38.278 billion, compared to RMB 36.151 billion in the same period of 2023, reflecting a growth of 5.9%[10] - The company reported a pre-tax profit of RMB 47,900 million, up from RMB 37,538 million in the same period of 2023[54] Assets and Liabilities - Total assets increased by 7.2% to RMB 622.2638 billion compared to the end of 2023[5] - Total liabilities rose by 7.6% to RMB 571.8505 billion, with insurance contract liabilities increasing by 11.5%[5] - Total assets and investment assets both exceeded RMB 6 trillion, reaching RMB 6.22 trillion and RMB 6.09 trillion respectively[9] - As of June 30, 2024, total investment assets reached RMB 608,648.5 million, an increase of 7.5% compared to the end of 2023[28] - The total liabilities as of June 30, 2024, were RMB 5,718,505 million, compared to RMB 5,315,052 million at the end of 2023, indicating a rise in liabilities[66] - The company's equity attributable to shareholders increased to RMB 493,834 million as of June 30, 2024, from RMB 477,093 million at the end of 2023[66] Dividends - The company proposed a mid-year cash dividend of RMB 2.0 per 10 shares, subject to shareholder approval[2] - The total dividend for 2023 was RMB 0.43 per share, amounting to approximately RMB 12,154 million, which was approved at the annual general meeting on June 27, 2024[64] - The company proposed an interim dividend of RMB 0.20 per share for 2024, totaling approximately RMB 5,653 million, to be presented at the upcoming shareholders' meeting[64] Investment and Income - Investment income for the first half of 2024 totaled RMB 122.366 billion[9] - The investment income increased by 140.3% year-on-year to RMB 56.736 billion, driven by market fluctuations and proactive investment operations[8] - The net investment yield for the first half of 2024 was 3.03%, a decrease of 28 basis points compared to the same period in 2023[30] - The company reported a significant increase in interest income to RMB 59,413 million, up from RMB 10,841 million in the previous year[71] - The investment income for the period was RMB 56,736 million, showing a strong performance across various segments[71] Risk Management - The company maintained an A rating in risk assessment for 24 consecutive quarters, reflecting strong risk management capabilities[4] - The comprehensive solvency adequacy ratio was 205.23%, and the core solvency adequacy ratio was 151.90%, both significantly above regulatory requirements[9] - The proportion of AAA-rated credit bonds held by the company exceeded 98% as of the report date, indicating strong asset quality[31] Customer and Market Engagement - The company provided services to a total of 1.56 billion people in the first half of the year, with over 40 million individuals benefiting from value-added services related to family, health, and lifestyle[48] - The registered user base of the China Life Insurance APP has surpassed 150 million, indicating a steady enhancement in online reach capabilities[48] - The customer protection management system has reached over 130 million consumers through educational campaigns, reflecting a year-on-year increase of 27.2%[49] - The company is focusing on enhancing its technological capabilities and digital transformation to drive high-quality development, including building a 5G network laboratory and improving data management standards[47] Operational Efficiency - The average claims processing time has improved to 0.34 days, a significant reduction of 13% year-on-year, positioning the company among the industry leaders[48] - The company has introduced innovative service models such as "proactive claims reminders" and "instant claims payments," enhancing operational efficiency[48] Future Outlook - The company plans to focus on customer-centric strategies and aims to enhance service quality, value creation, and team development in the second half of 2024[52] - The company anticipates that its funding will meet the insurance business expenditures and new investment project requirements in the second half of 2024[53] - The insurance industry is expected to experience high-quality development driven by the long-term positive economic fundamentals in China[51] - The company is committed to optimizing asset-liability management and diversifying value creation sources to address potential risks in the economic recovery phase[53]

Investment Rating - The report maintains a "Buy" rating for China Life Insurance (2628 HK) with a target price adjusted from HKD 17.00 to HKD 14.00, indicating a potential upside of 35.9% from the current closing price of HKD 10.30 [1][7]. Core Insights - The company's net profit for Q1 2024 decreased by 9.3% year-on-year, primarily due to increased claims in the insurance service sector, which saw a decline of 20.4% [1]. - New business value showed significant growth, increasing by 26.3% year-on-year, driven by an improved business structure and cost efficiency measures [1]. - The investment yield decreased, with annualized net and total investment yields at 2.82% and 3.23%, respectively, both down year-on-year [1]. Financial Performance Summary - **Revenue**: The total revenue for 2023 is projected to be RMB 344,272 million, down 11.5% from 2022, with a recovery expected in 2024 to RMB 385,064 million, representing an 11.8% increase [3][4]. - **Net Profit**: The net profit for 2023 is expected to be RMB 46,181 million, a decrease of 30.7% from 2022, with a slight recovery to RMB 46,610 million in 2024 [3][4]. - **New Business Value**: The new business value is projected to grow from RMB 36,860 million in 2023 to RMB 40,794 million in 2024, reflecting a year-on-year growth rate of 10.7% [4][8]. Business Structure and Strategy - The proportion of premium income from ten-year and above regular premium policies has significantly increased, accounting for 33.7% of new regular premium income, up 5.6 percentage points year-on-year [1]. - The company has optimized its premium structure, with a 3.2% increase in total premium income, primarily driven by renewal premiums [1]. Investment and Asset Management - Total investment assets grew by 4.8% year-to-date, with total investment income increasing by 7.2% year-on-year [1]. - The company has maintained a core solvency ratio of 154.97% as of Q1 2024, down 3 percentage points from the previous year, indicating a strong capital position despite market risks [1].