Core Viewpoint - The report from Shenwan Hongyuan indicates that Sunshine Insurance (06963) is expected to see a steady growth in net profit from 2025 to 2027, with projected figures of 5.734 billion, 6.056 billion, and 6.788 billion yuan respectively, reflecting year-on-year growth rates of 5.2%, 5.6%, and 12.1% [1] Group 1: Profit Growth and Dividend Policy - The company is projected to achieve a year-on-year net profit increase of 45.8% to 5.449 billion yuan in 2024, with a stable profit performance in the first half of 2025, showing a year-on-year growth of 7.8% to 3.389 billion yuan [2] - The dividend payout ratio is expected to reach 40.1% in 2024, ranking first among listed insurance companies, with a calculated dividend yield of 5.4% based on the closing price on September 22, placing it second in the industry [2] Group 2: New Business Value (NBV) and Distribution Channels - The company has demonstrated strong resilience and growth in its life insurance segment, with NBV growth rates of 44.2% and 43.3% for 2023 and 2024 respectively, and a year-on-year increase of 47.3% to 4.008 billion yuan in the first half of 2025, leading the industry [3] - The bancassurance channel remains a traditional strength for the company, benefiting significantly from the "reporting and operation integration," with channel NBV growth rates of 6.4 percentage points and 7.2 percentage points for 2024 and the first half of 2025 respectively [3] Group 3: Liability Costs and Investment Returns - The company has seen a significant decline in new liability costs, with the NBV to effective business value ratio at 12.79% in 2024, ranking third among listed insurance companies, which is expected to further dilute the cost of existing liabilities [4] - The net investment return rate and the difference between NBV and effective business value yield are projected to increase year-on-year by 100 basis points and 31 basis points respectively, indicating an expansion of the interest spread [4] Group 4: Equity Allocation and Performance Stability - As of the end of June, the company's equity allocation in the secondary market has increased by 1.28 percentage points to 15.1%, with a stock allocation level that continues to rise, reaching 14.1% by the end of 2024, and the proportion of FVOCI stocks exceeding 70.38% [5] - The company’s CSM has shown steady growth, with a year-on-year increase of 12.6% to 50.9 billion yuan by the end of 2024, maintaining a stable amortization rate of 8.45% [5]