NCI(SH:601336) Soochow Securities·2024-11-02 07:00Investment Rating - The report maintains a "Buy" rating for New China Life Insurance [1] Core Views - New China Life Insurance reported a significant increase in net profit for the first nine months of 2024, reaching 20.68 billion yuan, a year-on-year growth of 116.7% [1] - The company's performance aligns with previous profit forecasts, driven by a rebound in the stock market and a substantial increase in total investment income [1] - The new business value (NBV) grew by 79.2% year-on-year, outperforming major competitors in the industry [1] Summary by Relevant Sections Earnings Forecast and Valuation - The forecasted net profit for 2024-2026 is adjusted to 20.6 billion, 13.5 billion, and 14.4 billion yuan respectively [1] - The expected growth rates for net profit are 136.5% in 2024, -34.3% in 2025, and 6.4% in 2026 [1] Business Performance - The insurance service revenue decreased by 10.2% year-on-year for the first nine months of 2024 [1] - The investment yield improved significantly, with total investment returns of 6.8% and comprehensive investment returns of 8.1%, both showing a year-on-year increase [1] - The company plans to enhance the proportion of FVOCI equity and debt instruments to better match assets and liabilities [1] Market Position - New China Life's NBV growth rate continues to outperform its listed peers, with a notable increase in long-term premium income [1] - The company has implemented reforms to enhance its market position, resulting in a 21.3% increase in ten-year and above premium income [1] - The distribution of new business contributions is balanced across individual insurance, bancassurance, and group insurance channels [1]