Investment Rating - The report maintains a "Recommended" investment rating for China Pacific Insurance (02328.HK) with a target price of HKD 13.69, compared to the current price of HKD 10.08 [2]. Core Views - The report highlights a slight increase in the combined ratio (COR) due to natural disasters, with a net profit growth in Q2 2024. The company achieved original premium income of CNY 311.996 billion in H1 2024, a year-on-year increase of 3.7% [2]. - The overall COR rose by 0.4 percentage points to 96.2%, primarily due to an increase in claims from natural disasters, which pressured the loss ratio to 70.1% [2]. - The report emphasizes the improvement in the agricultural insurance segment's COR, which decreased by 2.0 percentage points to 89.0%, contributing significantly to underwriting profits [2]. - The total investment return rate (unannualized) decreased to 2.2%, down 0.4 percentage points year-on-year, influenced by declining interest rates and market volatility [2]. - The report projects a potential improvement in the combined ratio in the second half of the year due to reduced pressure from last year's typhoon weather [2]. Financial Performance Summary - In H1 2024, the company reported insurance service income of CNY 235.841 billion, a year-on-year increase of 5.1% [2]. - The underwriting profit was CNY 8.999 billion, a decrease of 5.0% year-on-year, while the net profit attributable to shareholders was CNY 18.490 billion, down 8.7% year-on-year [2]. - The report forecasts EPS for 2024-2026 to be CNY 1.37, CNY 1.54, and CNY 1.70 respectively, with a maintained PB target of 1.1x for 2024 [2][9].
中国财险：2024年中报点评：COR略有上行，单Q2净利润实现增长