GF SECURITIES·2024-07-17 01:01Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [5]. Core Views - The company plans to issue convertible bonds worth $3.5 billion, maturing in 2029, with a coupon rate of 0.875%, which will only convert into H shares [3][4]. - The issuance of convertible bonds is expected to enhance the company's solvency ratio under the new solvency regulations, thereby reducing capital pressure for strategic development [3]. - The company aims to strengthen its competitive advantage in integrated financial services and healthcare, with a significant portion of new business value (NBV) coming from clients utilizing healthcare services [3]. - Earnings per share (EPS) forecasts for 2024, 2025, and 2026 are projected at CNY 5.13, CNY 5.77, and CNY 6.35 respectively, with a reasonable valuation of CNY 56.5 per A share and HKD 52.6 per H share [3][5]. Financial Summary - The company reported a net profit of CNY 85.665 billion for 2023, with a projected increase to CNY 93.374 billion in 2024, reflecting a growth rate of 9% [4]. - The embedded value for 2024 is estimated at CNY 1,474.273 million, indicating a growth rate of 6.05% compared to 2023 [4]. - The company's return on equity (ROE) is expected to improve from 9.53% in 2023 to 10.02% in 2024 [4].