Haitong Securities·2024-08-23 08:49Investment Rating - The investment rating for the company is "Outperform" [2] Core Views - The report highlights that the company's net profit for Q2 increased by 20% year-on-year, with a total net profit of 746 billion yuan for the first half of 2024, reflecting a year-on-year growth of 6.8% [6] - The report emphasizes the growth in the company's new business value (NBV), which increased by 11% year-on-year on a comparable basis, indicating strong performance in the life insurance segment [6] - The report projects a reasonable valuation range for the company's stock price between 53.10 and 57.18 yuan, based on a price-to-embedded value (PEV) ratio of 0.65-0.7 times for 2024E [6] Summary by Relevant Sections Financial Performance - The company's net profit for the first half of 2024 was 746 billion yuan, with a year-on-year increase of 6.8%. The annualized return on equity (ROE) was 16.2%, up by 0.8 percentage points [6] - The net asset value reached 931.2 billion yuan, reflecting a growth of 3.6% since the beginning of the year [6] - The NBV for the first half of 2024 showed a year-on-year increase of 11%, with the life insurance segment's performance improving [6] Business Segments - In the life insurance segment, the new single premium decreased by 19% year-on-year, but the NBV margin improved to 24.2%, up by 6.5 percentage points [6] - The property and casualty insurance segment reported a 4.1% increase in original premium income, with an underwriting profit of 3.5 billion yuan, reflecting a year-on-year increase of 15.7% [6] - The investment segment saw a total investment scale of 5.2 trillion yuan, with a year-to-date increase of 10.2%, and an annualized net investment return of 3.3% [6] Valuation and Market Position - The report indicates that the company's valuation remains low, with a PEV of 0.51 times as of August 22, 2024, and suggests a target valuation range of 53.10-57.18 yuan [6] - The company is expected to benefit from ongoing reforms in the life insurance sector and improvements in the quality of its sales force, which will support long-term performance growth [6]