CHINA TAIPING(00966) Soochow Securities·2025-03-25 05:48Investment Rating - The report assigns a "Buy" rating for China Taiping (00966.HK) [7] Core Views - The report highlights a significant increase in the new business value (NBV) of 94% on a comparable basis, alongside a substantial growth in comprehensive investment returns [7] - The company is expected to focus on high-quality development strategies in life insurance and prioritize profitability in property insurance [7] Financial Performance Summary - Insurance service revenue is projected to reach 111,268 million HKD in 2024, with a year-on-year growth of 3.5% [6] - The net profit attributable to shareholders is forecasted to be 8,432 million HKD in 2024, reflecting a 36.2% increase year-on-year [6] - Earnings per share (EPS) is expected to rise to 2.3 HKD in 2024, up from 1.7 HKD in 2023 [6] - The embedded value (EV) per share is estimated at 48.6 HKD for 2024, with a projected increase in subsequent years [6] Business Segment Insights - Life Insurance: The new business value (NBV) for Taiping Life is expected to be 8,430 million HKD in 2024, with a year-on-year increase of 23.8% [7] - Property Insurance: The comprehensive cost ratio for Taiping Property Insurance is reported at 98.1%, showing a slight improvement [7] - Investment Strategy: The company has shifted its investment strategy to increase bond allocations while reducing stock and fund investments, resulting in a total investment income of 66.5 billion HKD, a 98% increase year-on-year [7] Valuation Metrics - The current market capitalization is approximately 44,997.11 million HKD, with a price-to-earnings (P/E) ratio of 5.34 for 2024 [5][6] - The price-to-embedded value (P/EV) ratio is projected at 0.24 for 2025, indicating a low valuation relative to expected growth [7]