NCI(SH:601336) EBSCN·2024-09-01 02:09Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company, with current prices at 33.05 RMB and 16.92 HKD respectively [2]. Core Insights - The company experienced a significant increase in net profit, with a year-on-year growth of 11.1% to 110.8 billion RMB in the first half of 2024, driven by improved investment performance and a doubling of quarterly profits [5][7]. - New business value (NBV) surged by 57.7% year-on-year to 39.0 billion RMB, supported by an increase in the proportion of long-term insurance premiums and enhanced pricing strategies [7][12]. - The company has implemented a comprehensive health and wellness service system, which is expected to synergize with its life insurance business, potentially boosting sales of protection-oriented products [12]. Financial Performance - In the first half of 2024, the company reported total revenue of 555.9 billion RMB, a 13.6% increase year-on-year, while insurance service revenue decreased by 11.9% to 234.2 billion RMB [5]. - The annualized net investment return rate was 3.2%, a slight decrease of 0.2 percentage points year-on-year, but the total investment return rate improved by 1.1 percentage points to 4.8% [5][7]. - The company plans to distribute a mid-term dividend of 0.54 RMB per share, marking its first implementation of such a dividend policy [5]. Business Development - The individual insurance channel has seen a significant enhancement in productivity, with a 28.3% year-on-year increase in average per capita productivity [6]. - The company is focusing on transforming its individual insurance channel and optimizing its product offerings, which is expected to lead to sustained growth in NBV throughout the year [12]. - The report highlights the challenges faced in the bancassurance channel, where first-year premiums for long-term insurance dropped by 60.8% year-on-year due to regulatory impacts, although the decline has moderated compared to the first quarter [6][7].