Investment Rating - The report maintains a "Buy" rating for the company [6][30]. Core Views - The company reported a 2024 EPS of RMB 0.47, a 47% year-on-year increase, driven by strong performance in equity investments, exceeding the expected RMB 0.40 [1][6]. - The total investment return rate for 2024 improved by 0.9 percentage points to 4.3%, contributing to the better-than-expected performance [1]. - The new business value (NBV) for life insurance increased by 88% year-on-year on a comparable basis, indicating robust growth [2][6]. - The comprehensive cost ratio (COR) for property insurance was 99.7%, up 1 percentage point, reflecting a deterioration in underwriting performance [3][6]. - The company's net assets increased by 3% year-on-year, showing stability despite some impact from asset-liability mismatches [4][6]. - The report projects a 16% year-on-year increase in NBV for 2025, supported by expectations of continued improvement in NBV margins [2]. Summary by Sections Earnings Performance - The company achieved a total investment income of RMB 22.676 billion in 2024, a 48.77% increase from the previous year [5][19]. - The net profit attributable to shareholders for 2024 was RMB 5.449 billion, a 45.77% increase year-on-year [5][19]. Insurance Business - The life insurance new business value (NBV) margin improved by 11 percentage points to 22% on a comparable basis, driven by pricing adjustments [2]. - The property insurance premium income grew by 8% year-on-year, with non-auto insurance driving the growth at 17% [3]. Financial Metrics - The company’s return on equity (ROE) for 2024 was 8.9%, an increase of 2.7 percentage points from the previous year, with expectations of reaching 9% in 2025 [4][5]. - The dividend per share (DPS) for 2024 was RMB 0.19, a slight increase from RMB 0.18 in 2023, with a dividend payout ratio reduced to 40% [4][5]. Valuation - The target price is set at HKD 4.60 based on a discounted cash flow (DCF) method, reflecting adjustments in the risk-free rate assumptions [5][6]. - The report anticipates EPS for 2025 to be RMB 0.47, maintaining a stable outlook for the company's earnings [5].
阳光保险（06963）：2024：NBV、CSM强劲增长