HUAXI Securities·2024-10-17 08:03Investment Rating - The investment rating for the company is "Buy" with a target price not specified in the report [2]. Core Views - The company, China Life, is expected to achieve a significant increase in net profit for the first three quarters of 2024, with estimates ranging from CNY 101.14 billion to CNY 108.77 billion, representing a year-on-year growth of approximately 165% to 185% [2][3]. - The substantial growth in net profit is attributed to the company's adherence to asset-liability matching principles and a focus on long-term, value, and prudent investments, which have allowed it to capitalize on market opportunities [4]. - The report highlights the company's strong equity elasticity, which positions it to benefit from the recent recovery in the stock market, with the CSI 300 index rising by 15% in Q3 2024 compared to a decline of 5% in Q3 2023 [4]. Financial Performance Summary - For 2024, the company is projected to generate revenues of CNY 930.93 billion, CNY 945.94 billion, and CNY 993.63 billion for the years 2024, 2025, and 2026 respectively, with a year-on-year growth of 11.1% in 2024 [7]. - The estimated net profit for 2024 is projected to be CNY 86.03 billion, reflecting a year-on-year increase of 307.5% [7]. - The earnings per share (EPS) for 2024 is expected to be CNY 3.04, significantly higher than the previous year's CNY 0.75 [7]. - The price-to-earnings (P/E) ratio for 2024 is projected at 14.11, indicating a favorable valuation compared to historical figures [8].