China Life(02628) 交银国际证券·2024-09-03 02:12Investment Rating - The report maintains a "Buy" rating for China Life Insurance (2628 HK) with a target price of HKD 14.00, indicating a potential upside of 18.4% from the current closing price of HKD 11.82 [1][8]. Core Insights - The company's net profit attributable to shareholders increased by 10.6% year-on-year in the first half of 2024, with a significant recovery in Q2, where profits doubled compared to the same period last year [1]. - Premium income rose by 4.1% year-on-year, primarily driven by renewal premiums, while the structure of premiums improved, with a notable increase in 10-year and above regular premiums [1]. - The new business value grew by 18.6% year-on-year, although this growth rate is relatively lower compared to peers in the industry [1]. - Total investment income saw a substantial increase of 50% year-on-year, with an annualized net investment return of 3.03% [1]. Financial Overview - For the fiscal year ending December 31, 2022, the company reported total revenue of RMB 388.895 billion, with a projected revenue of RMB 454.408 billion for 2024, reflecting a year-on-year growth of 32.0% [4]. - The net profit for 2022 was RMB 66.680 billion, with an expected increase to RMB 54.795 billion in 2024, representing a year-on-year growth of 18.7% [4]. - The company's earnings per share (EPS) is projected to rise from RMB 1.63 in 2023 to RMB 1.94 in 2024 [4]. - The price-to-earnings (P/E) ratio is expected to be 5.5 in 2024, indicating a favorable valuation compared to historical levels [4]. Business Metrics - The report highlights that the 14-month persistency rate improved to 91.5%, up by 2.3 percentage points year-on-year, indicating better customer retention [1]. - The number of individual insurance agents remained stable at 629,000, suggesting a solid distribution network [1]. - The proportion of new business value from the individual insurance channel increased to 30.6%, up by 5.4 percentage points year-on-year [1].