China Life(SH:601628) Guoxin Securities·2025-03-27 07:43Investment Rating - The investment rating for the company is "Outperform the Market" [5][14]. Core Views - The company is expected to achieve a significant growth in net profit, with a projected increase of 131.6% year-on-year in 2024, driven by the release of investment elasticity and the continuous optimization of its transformation strategy [1][7]. - The company has implemented a series of transformation measures on the liability side, which, combined with the recovery of key indicators on the asset side, has led to an upward revision of profit forecasts for 2025 to 2027 [3][7]. Financial Performance Summary - In 2024, the company is projected to achieve operating revenue of 528.57 billion yuan, a substantial increase of 30.5% year-on-year, and an operating profit of 115.6 billion yuan, reflecting a year-on-year growth of 120.8% [1][4]. - Total premium income is expected to reach 529.03 billion yuan in 2024, marking a 5.5% increase year-on-year, with first-year premium income for policies with a term of ten years or more growing by 14.3% [1][2]. - The company’s investment income is anticipated to rise to 308.25 billion yuan in 2024, a remarkable increase of 150.4% year-on-year, resulting in a total investment return rate of 5.50% [3][4]. Earnings Forecast and Financial Indicators - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 3.83 yuan, 3.88 yuan, and 3.94 yuan respectively, with the current stock price corresponding to P/EV ratios of 0.71, 0.66, and 0.64 [3][4]. - The company’s net profit attributable to shareholders is forecasted to be 106.94 billion yuan in 2024, with a year-on-year growth of 406.56% [4][9]. - The company’s embedded value per share is expected to increase from 44.60 yuan in 2023 to 62.51 yuan in 2027, reflecting a growth rate of 9.13% [4][12].