Investment Rating - The report maintains a "Buy" rating for Sunshine Insurance (06963.HK) with a target price of HKD 4.85, while the current price is HKD 3.17 [1]. Core Views - In H1 2024, Sunshine Insurance achieved a net profit attributable to shareholders of CNY 3.14 billion, representing an increase of 8.6% year-on-year. The new business value (NBV) reached CNY 3.75 billion, up 39.9% year-on-year. The combined ratio (COR) for Sunshine Property & Casualty Insurance was 99.1%, an increase of 0.9 percentage points year-on-year. As of H1 2024, the embedded value was CNY 112.64 billion, an increase of 8.2% from the end of the previous year [1][3]. Summary by Sections Business Performance - Sunshine Life achieved premium income of CNY 51.76 billion in H1 2024, a year-on-year increase of 12.9%. New single premiums decreased by 9.0% year-on-year, while renewal premiums increased by 32.3%. The significant growth in NBV was driven by improvements in the new business value rate, primarily due to a reduction in the scheduled interest rate and cost improvements from the integration of sales channels [1][3]. Sales Channels - The sales channel structure remains dominated by bank insurance, which contributed CNY 34.01 billion, a year-on-year increase of 9.5%, accounting for 65.7% of total premiums. However, new single premiums from bank insurance decreased by 16.9% due to short-term negative impacts from the integration of sales channels. The individual insurance channel saw a year-on-year increase of 25.5% to CNY 13.69 billion, with new single premiums up 15.7% [1][3]. Non-Motor Insurance - Sunshine Property & Casualty Insurance reported original premiums of CNY 24.65 billion in H1 2024, a year-on-year increase of 12.4%. The overall COR was 99.1%, reflecting a 0.9 percentage point increase year-on-year, primarily due to increased natural disaster frequency. Non-motor insurance premiums increased by 25.5% to CNY 11.36 billion, with health and accident insurance contributing significantly to underwriting profits [1][3]. Investment Performance - The total investment assets of the group reached CNY 514.11 billion as of H1 2024, an increase of 7.2% from the end of the previous year. The net, total, and comprehensive investment returns were 3.8%, 3.6%, and 7.2%, respectively, with year-on-year increases of 0.4 percentage points, 0.1 percentage points, and 2.3 percentage points [1][3]. Future Outlook - The report maintains EPS forecasts for 2024-2026 at CNY 0.42, CNY 0.51, and CNY 0.61, respectively. The target price for 2024 is set at HKD 4.85 per share, reflecting a slight upward adjustment in NBV growth assumptions due to better-than-expected performance [1][3].
阳光保险：2024年中报点评：价值率驱动NBV高增，投资改善促进净利润回暖