Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (2328.HK) with a current price of HKD 10.08 [1]. Core Views - The company has implemented its first interim dividend, maintaining a good level of Combined Operating Ratio (COR) [1]. - In the first half of 2024, the company reported a premium income of CNY 312 billion, a year-on-year increase of 3.7%, and a net profit attributable to shareholders of CNY 18.49 billion, a decrease of 8.7% [7][9]. - The company continues to lead the industry with a market share of 34.0% in the non-life insurance sector [9][10]. Summary by Sections Market Data - Total shares outstanding: 22.243 billion - Total market capitalization: CNY 224.207 billion - 1-year price range: HKD 8.55 to HKD 11.54 - 3-month turnover rate: 33.9% [3]. Revenue Performance - Insurance service revenue for H1 2024 was CNY 235.84 billion, up 5.1% year-on-year, with a slight narrowing of growth compared to Q1 [8]. - The breakdown of insurance service revenue includes: - Motor insurance: CNY 145.16 billion, up 5.3% - Non-motor insurance: CNY 90.68 billion, up 4.9% [8]. Cost and Profitability - The combined cost ratio (COR) increased by 0.4 percentage points to 96.2%, still maintaining a good level compared to peers [8]. - The underwriting profit for H1 2024 was CNY 9 billion, down 5.0% year-on-year [8]. - The total investment income decreased by 7.8% to CNY 13.97 billion, with a non-annualized total investment return of 2.2%, down 0.4 percentage points year-on-year [9]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024, 2025, and 2026 is CNY 27.9 billion, CNY 30.8 billion, and CNY 34.1 billion respectively [10]. - The current stock price corresponds to a price-to-book (PB) ratio of 0.84 for 2024, indicating it is still at a historically low level [10].
中国财险：2024年半年报点评：首次实施中期分红，COR维持良好水平