Core Viewpoint - China Pacific Insurance (02328) has improved its earnings forecasts for 2025 and 2026, raising EPS estimates by 9.1% and 9.5% to 1.56 CNY and 1.61 CNY per share respectively, while maintaining an outperform rating and increasing the target price by 5% to 15.5 HKD [1] Group 1: Premium Income Growth - In Q1 2025, China Pacific Insurance reported a steady growth in premium income, with overall, auto, and non-auto insurance premiums increasing by 3.7%, 3.5%, and 3.8% year-on-year respectively [2] - The insurance service revenue for Q1 2025 reached 120.7 billion CNY, up 6.1% year-on-year, with auto insurance contributing 74.3 billion CNY (up 2.8%) and non-auto insurance contributing 46.4 billion CNY (up 11.7%) [2] Group 2: Underwriting Profit Improvement - The comprehensive cost ratio (CoR) for Q1 2025 improved significantly by 3.4 percentage points to 94.5%, with underwriting profit increasing by 183% to 6.7 billion CNY [3] - The improvement is attributed to cost reduction and efficiency measures, enhanced auto insurance operations, improved market competition, and a low base from the previous year due to significant disaster impacts [3] Group 3: Investment Performance - In Q1 2025, total investment income reached 7.5 billion CNY, an increase of 2.7 billion CNY year-on-year, with an annualized total investment return of 1.2%, up 0.4 percentage points year-on-year, showing strong performance relative to peers [4] Group 4: Profitability Trend - The net profit for Q1 2025 was 11.3 billion CNY, reflecting a year-on-year increase of 92.7%, aligning with prior profit forecasts [5] - The financial report indicates a strengthening trend in profitability, reaffirming the company as a long-term stable investment choice [5]
中金：维持中国财险“跑赢行业”评级 目标价升至15.5港元