Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (2328 HK) with a target price raised from HKD 12.0 to HKD 14.9, indicating a potential upside of 22.1% [1][2][7]. Core Insights - The significant growth in net profit for the third quarter is primarily driven by investment income, with a year-on-year increase of 38% for the first three quarters, aligning with the company's previous earnings forecast [1][2]. - The insurance service revenue growth remains stable, with a 5.3% year-on-year increase in the first three quarters, while the growth rates for auto and non-auto insurance are 4.7% and 6.1%, respectively [1][2]. - The combined ratio for auto insurance improved to 96.8%, a decrease of 0.6 percentage points year-on-year, while the non-auto insurance segment experienced underwriting losses, leading to a combined ratio of 100.5% for the first three quarters, an increase of 1.9 percentage points year-on-year [1][2]. Financial Performance Summary - Total investment income for the first three quarters increased by 70% year-on-year, exceeding the annual total investment income forecast for 2023 by 32%. The annualized total investment return stands at 4.4%, up by 1.7 percentage points year-on-year [2][4]. - The report projects a 31% year-on-year increase in net profit for 2024, with a return on equity (ROE) expected to reach 13% [2][5]. - The forecast for insurance service revenue is set at RMB 483,629 million for 2024, reflecting a year-on-year growth rate of 5.8% [4][5]. - The underwriting profit is expected to decline by 3.2% in 2024, with total investment income projected to rise by 51.5% [5][6]. Stock Performance Metrics - The stock has shown a year-to-date increase of 31.47%, with a market capitalization of approximately HKD 84.17 billion and an average daily trading volume of 18.79 million shares [3][8]. - The stock's 52-week high and low are HKD 14.04 and HKD 8.69, respectively [3].
中国财险：投资收益带动盈利显著增长，上调目标价