Tianfeng Securities·2024-11-01 01:02Investment Rating - The investment rating for China Life Insurance is "Buy" with a 6-month outlook [4]. Core Views - The report highlights a significant increase in net profit for Q3 2024, reaching 66.245 billion yuan, a year-on-year increase of 1767.1% [1]. - For the first three quarters of 2024, the net profit attributable to shareholders is 104.52 billion yuan, up 173.9% year-on-year [1]. - The report emphasizes the impact of rising equity markets on profit elasticity and suggests a focus on the performance of equity investments [3]. Financial Performance Summary - In Q3 2024, the company achieved a net investment income of 144.71 billion yuan, a year-on-year increase of 3.9%, with a net investment yield of 3.26% [2]. - Total investment income for the first three quarters of 2024 was 261.42 billion yuan, reflecting a year-on-year increase of 152.4% [2]. - The first-year premium income for the first three quarters of 2024 was 113.18 billion yuan, up 6.8% year-on-year [2]. - The new business value increased by 25.1% year-on-year [2]. Sales and Human Resources - The total sales force for Q3 2024 was 694,000, with individual insurance sales personnel numbering 641,000 [3]. - The average first-year premium per person in the individual insurance channel increased by 17.7% year-on-year [3]. Future Projections - The projected net profit attributable to shareholders for 2024, 2025, and 2026 is 114.3 billion yuan, 122.6 billion yuan, and 128.8 billion yuan, respectively, indicating growth rates of 441.2%, 7.3%, and 5.1% [3]. - The report suggests that the company’s financial assets, particularly those measured at fair value through profit or loss, will show more pronounced profit elasticity with rising equity prices [3].