CPIC(SH:601601) Guotai Junan Securities·2024-10-31 10:23Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (601601) with a target price raised to 51.56 CNY per share, corresponding to a 2024 P/EV of 0.75 times [4][10]. Core Insights - The company's net profit attributable to shareholders for the first three quarters of 2024 increased by 65.5% year-on-year, primarily driven by improved investment income. The third quarter alone saw a remarkable 96.5% year-on-year growth [2][10]. - The growth in new business value (NBV) for life insurance accelerated, with a 37.9% year-on-year increase in the first three quarters of 2024, and a 75.3% increase in the third quarter [10]. - The property insurance combined ratio (COR) remained stable at 98.7%, supported by effective business quality control and strict expense management [10]. Financial Summary - For 2024, the expected earnings per share (EPS) are adjusted to 4.60 CNY, 5.32 CNY, and 6.31 CNY for the years 2024, 2025, and 2026 respectively, reflecting increases of 23.1%, 15.4%, and 9.0% [10]. - The total investment return rate for the first three quarters of 2024 was 4.7%, an increase of 2.3 percentage points year-on-year, while the net investment return rate was 2.9%, down by 0.1 percentage points [10]. - The company’s total revenue for 2024 is projected to be 369,084 million CNY, with a year-on-year growth of 14% [11]. Market Performance - The stock price has fluctuated between 21.79 CNY and 40.76 CNY over the past 52 weeks, with a current price of 34.31 CNY [5]. - The company’s market capitalization stands at 357,780 million CNY [5]. Valuation Metrics - The price-to-earnings (P/E) ratio at the current price is 9.57, while the price-to-book (P/B) ratio is 1.82 [12]. - The company’s net asset value per share is projected to reach 28.45 CNY in 2024, with a corresponding P/EV of 0.54 [12].