PICC(601319) Haitong Securities·2024-09-01 04:40Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][7]. Core Views - The report highlights a significant increase in net profit and new business value (NBV) for the first half of 2024, with net profit reaching 22.7 billion yuan, up 14.1% year-on-year, and a quarterly profit of 13.7 billion yuan, up 68.2% year-on-year [6][7]. - The report emphasizes the company's competitive advantage in the property insurance sector, particularly in the auto insurance business, which is expected to enhance profitability compared to smaller competitors [7][9]. Summary by Sections Financial Performance - The company reported a net profit of 22.7 billion yuan for the first half of 2024, with a year-on-year increase of 14.1%. The return on equity (ROE) was 9.0%, up 0.7 percentage points year-on-year [6]. - The total assets increased by 6.9% to 1.53 trillion yuan, with fixed income and equity assets accounting for 67.3% and 19.2% respectively [7]. - The annualized total investment yield was 4.1%, down 0.8 percentage points year-on-year, while the net investment yield was 3.8%, down 0.6 percentage points year-on-year [7]. Insurance Segment Performance - In the property insurance segment, premium income grew steadily, with a year-on-year increase of 3.7%, and a market share of 34.0%, up 1.5 percentage points from the beginning of the year [6][7]. - The comprehensive cost ratio for property insurance was 96.8%, up 0.4 percentage points year-on-year, with a claims ratio of 70.7%, up 1.2 percentage points [6][16]. - In the life insurance segment, net profit reached 9.9 billion yuan, a significant increase of 191% year-on-year, with NBV growing by 91% [6][7]. Valuation - The report provides a valuation range for the company between 6.56 and 7.12 yuan per share, based on a segmented valuation approach [9][22]. - The estimated price-to-earnings (P/E) ratio for 2024 is projected at 9.69, while the price-to-book (P/B) ratio is expected to be 0.99 [22][21]. Market Comparison - The company's stock price closed at 6.00 yuan, with a 52-week price fluctuation between 4.52 and 6.14 yuan [2][8]. - The report indicates that the company's performance has outpaced the Shanghai and Shenzhen 300 index, with relative increases of 12.0% over one month and 20.0% over two months [4].