NCI(601336) 国投证券·2024-09-03 16:30Investment Rating - The investment rating for the company is "Buy-A" with a target price of 38.71 CNY over the next six months [1][2]. Core Insights - The company reported a significant increase in new business value (NBV) by 57.7% year-on-year, reaching 39 billion CNY in the first half of 2024, alongside a 13.6% increase in revenue to 556 billion CNY and an 11.1% increase in net profit to 111 billion CNY [1][2]. - The company's embedded value reached 2,684 billion CNY, reflecting a 7.1% increase since the beginning of the year [1]. - The new business value rate improved significantly from 6.8% in the first half of 2023 to 18.8% in the first half of 2024, indicating enhanced business quality [2]. - The company experienced a decline in the number of agents, with the individual insurance agent count dropping to 139,000, but the average productivity per agent improved by 28.3% year-on-year [2]. - Investment returns showed a notable improvement, with total investment income increasing by 43% year-on-year and an annualized total investment return rate of 4.8% [2]. Financial Summary - The company’s projected financials for 2024 to 2026 include: - Revenue: 86,572 million CNY in 2024, 96,259 million CNY in 2025, and 109,254 million CNY in 2026 [5]. - Net profit: 11,992 million CNY in 2024, 12,040 million CNY in 2025, and 13,451 million CNY in 2026 [5]. - Earnings per share (EPS): Expected to be 3.84 CNY in 2024, 3.86 CNY in 2025, and 4.31 CNY in 2026 [2]. - The company's price-to-earnings (P/E) ratio is projected to decrease from 11.76 in 2023 to 8.55 in 2024, indicating a potential undervaluation [4].