Huachuang Securities·2024-08-23 09:11Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 57.1 CNY, compared to the current price of 41.71 CNY [2][8]. Core Views - The company's net profit growth has turned positive, driven by improvements in the investment sector. The net profit for H1 2024 reached 746.19 billion CNY, a year-on-year increase of 6.8% [2]. - The new business value (NBV) for the life insurance segment increased by 11% to 223.20 billion CNY, indicating stable growth despite a decline in first-year premiums [2]. - The property insurance segment showed a slight improvement in the combined ratio (COR), which decreased by 0.2 percentage points to 97.8% [2]. Financial Performance Summary - In H1 2024, the company achieved a total operating profit of 784.82 billion CNY, a slight decrease of 0.6% year-on-year. The three core business segments (life insurance, property insurance, and banking) all reported positive growth [2][10]. - The life insurance segment's NBV margin improved by 6.5 percentage points to 24.2%, while the first-year premiums decreased by 19% to 922.18 billion CNY [2]. - The property insurance segment's service revenue increased by 3.9% to 1619.10 billion CNY, with the COR showing improvement mainly due to a reduction in losses from credit guarantee insurance [2]. Investment Strategy - The report suggests that the company is expected to achieve both volume and price growth in H2 2024, benefiting from a low base and new predetermined interest rate policies [2][8]. - The investment portfolio of the company has grown to over 5.2 trillion CNY, with a 10.2% increase since the beginning of the year. The annualized net investment yield is reported at 3.3% [2][10].