Investment Rating - The report maintains a "Buy" rating for Xinhua Insurance (1336 HK) with a target price of HKD 20.50, indicating a potential upside of 21.2% from the current price of HKD 16.92 [1][9]. Core Insights - The company's net profit for the first half of the year increased by 11.1% year-on-year, with a significant recovery in Q2, where profits rose by 101% compared to the same period last year [1]. - New business value grew by 57.7% year-on-year, leading the industry, with contributions from individual insurance and bancassurance channels [1]. - Investment income saw a substantial increase of 43.3% year-on-year, with total investment assets growing by 7% since the beginning of the year [1]. Financial Performance Summary - Revenue: The company's revenue for 2023 is projected at RMB 71,547 million, a decrease of 33.8% from 2022, with a recovery expected in 2024 with a growth of 29% [2][10]. - Net Profit: The net profit for 2023 is estimated at RMB 8,712 million, down 59.5% from 2022, but expected to rebound to RMB 15,015 million in 2024, reflecting a growth of 72.4% [2][10]. - Earnings Per Share (EPS): EPS is projected to be RMB 2.79 in 2023, with a significant increase to RMB 4.81 in 2024 [2][10]. - Investment Returns: The annualized net investment return is 3.2% for the first half of the year, with total investment return at 4.8%, showing a year-on-year improvement [1][11]. Business Metrics - New Business Value: The new business value for 2023 is projected at RMB 3,024 million, with a significant increase to RMB 5,094 million in 2024, marking a growth of 68.5% [6][7]. - Insurance Premiums: The insurance service revenue for 2023 is expected to be RMB 48,045 million, with a decline from 2022, but a recovery is anticipated in subsequent years [10][11]. - Total Assets: Total assets are projected to grow from RMB 1,403,257 million in 2023 to RMB 1,539,327 million in 2024, reflecting a growth rate of 9.7% [10][11].
新华保险：盈利显著回升，新业务价值增速在同业中领先