Investment Rating - The report maintains an "Outperform the Market" rating for China Pacific Insurance (2328.HK) [6][5] Core Views - The company has shown robust growth in total premium income, with non-auto insurance growth outpacing auto insurance. For the first three quarters, total premium income increased by 4.6% year-on-year, with auto insurance and non-auto insurance growing by 3.2% and 5.9%, respectively [2][10] - Investment income has significantly improved, with total investment income reaching 27.5 billion yuan, a year-on-year increase of 70.4%. The annualized total investment return rate is 4.4%, up by 1.7 percentage points year-on-year [5][6] - The company’s competitive advantage in property and casualty insurance is expected to strengthen, particularly in the auto insurance sector, where the company has a higher proportion of low-loss vehicles and controllable channel costs [5][6] Summary by Sections Market Performance - Total premium income for the first three quarters was 409.57 billion yuan, with a year-on-year growth of 4.6%. Auto insurance premiums grew by 3.2%, while non-auto insurance premiums grew by 5.9% [2][10] - In Q3 alone, non-auto insurance premiums saw a significant increase of 11.8% year-on-year [2] Financial Performance - The company achieved a net profit of 26.8 billion yuan in the first three quarters, representing a year-on-year increase of 38.0%. The net profit for Q3 was 9.3 billion yuan, a remarkable growth of 59.7% year-on-year [6][5] - The comprehensive cost ratio for the first three quarters was 98.2%, an increase of 0.3 percentage points year-on-year, with auto insurance and non-auto insurance ratios at 96.8% and 100.5%, respectively [6][11] Investment Insights - The report highlights that the company’s current stock price corresponds to a 2024E price-to-book (PB) ratio of 0.98, indicating a low valuation. The estimated reasonable value range is between 13.71 and 14.95 HKD based on comparable company valuations [5][6]
中国财险：公司季报点评：投资收益提升带动净利润大幅增长，大灾导致非车险Q3承保亏损