CHINA TAIPING(00966)2024-08-29 06:11Investment Rating - The report maintains a "Buy" rating for the company, with an adjusted target price of HKD 11.60, indicating a potential upside of 18.1% from the current price of HKD 9.82 [2][9]. Core Insights - The company's performance on both asset and liability fronts has significantly exceeded expectations, with a projected profit growth of over 40% for the year due to a low base in the second half of 2023 [2][9]. - The new business value has shown rapid growth, increasing by 85.5% year-on-year, driven primarily by individual insurance and bancassurance channels [1][5]. - Investment income has performed strongly, with net investment income rising by 10.8% and total investment income increasing by 57.1% year-on-year, attributed to optimized equity investment structures [1][5]. Financial Performance Summary - For the first half of 2024, the company's net profit attributable to shareholders reached HKD 6,027 million, reflecting a 15.4% year-on-year increase [1][5]. - The new business value for the first half of 2024 was HKD 7,335 million, with a year-on-year growth of 85.5% [5][6]. - The company's total investment income for the first half of 2024 was HKD 37,242 million, marking a 57.1% increase compared to the previous year [5][10]. Business Segments Performance - Life insurance operating profit increased by 4.9% year-on-year, while the reinsurance segment turned profitable with a significant recovery [1][5]. - The domestic property and casualty insurance segment saw a remarkable 100.3% increase in operating profit, while the overseas property and casualty insurance segment's operating profit grew by 74.5% [5][6]. - The company plans to enhance its focus on dividend insurance sales in the second half of the year, anticipating a new business value growth of over 50% in 2024 [1][5].