Haitong Securities·2024-09-01 08:48Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The report highlights that the company's net profit for Q2 nearly doubled, with a year-on-year increase of 99.4%, reaching 134 billion yuan. The total net profit for the first half of the year was 251 billion yuan, up 37.1% year-on-year [6]. - The report emphasizes the company's strong performance in the property and casualty insurance sector, with a combined cost ratio of 97.1%, which is an improvement compared to peers [6]. - The report projects a reasonable valuation range for the company's stock at 35.83 to 41.80 yuan, based on a price-to-embedded value (PEV) of 0.6-0.7 times for 2024 [6]. Financial Performance Summary - The company's operating revenue for 2023 is projected to be 323,945 million yuan, with a year-on-year decrease of 2.47%. However, it is expected to grow by 5.20% in 2024 [7]. - The net profit for 2023 is estimated at 27,257 million yuan, reflecting a significant decline of 27.08% year-on-year, but is expected to rebound with a growth of 27.74% in 2024 [7]. - Earnings per share (EPS) for 2023 is projected at 2.83 yuan, increasing to 3.62 yuan in 2024 [7]. - The embedded value (EV) is expected to rise from 55.04 yuan in 2023 to 59.71 yuan in 2024 [7]. Business Segment Insights - In the life insurance segment, the new business value (NBV) for the first half of 2024 is reported at 90.4 billion yuan, a year-on-year increase of 22.8% [6]. - The NBV margin has improved to 18.7%, up 5.3 percentage points year-on-year, attributed to policy implementations and an increase in traditional insurance products [6]. - The property and casualty insurance segment reported a premium income of 1,118 billion yuan, with a year-on-year growth of 7.8% [6]. Investment Strategy - The company has adjusted its investment strategy by increasing allocations to bonds and stocks while reducing holdings in non-standard investments. The total investment assets have grown to 24,560 billion yuan, a 9.2% increase from the beginning of the year [6]. - The net investment income for the company is projected at 391 billion yuan for 2023, with a total investment income of 560 billion yuan, reflecting a year-on-year increase of 46.5% [6].