China Life(SH:601628) Huachuang Securities·2025-03-27 11:44Investment Rating - The report maintains a "Recommended" investment rating for the company, with a target price of 51.7 CNY [1]. Core Insights - In 2024, the company achieved a net profit attributable to shareholders of 106.935 billion CNY, representing a year-on-year increase of 108.92%. The new business value reached 33.709 billion CNY, with a year-on-year growth of 24.3% under original assumptions. The intrinsic value increased by 11.2% to 1,401.146 billion CNY by the end of 2024 [1][3]. - The company reported an annualized net investment return of 3.47% and a total investment return of 5.50%, with a year-on-year change of -0.24 percentage points and +2.93 percentage points, respectively [1]. - The company plans to distribute a cash dividend of 0.45 CNY per share (before tax) at the end of 2024 [1]. Financial Performance Summary - Revenue: The company expects to generate operating revenue of 528.567 billion CNY in 2024, with a year-on-year growth rate of 30.5% [3]. - Net Profit: The projected net profit for 2024 is 106.935 billion CNY, with a significant year-on-year increase of 108.9% [3]. - Earnings Per Share (EPS): The EPS for 2024 is estimated at 3.78 CNY, with a projected P/E ratio of 10.0 times [3]. - Intrinsic Value: The intrinsic value is projected to be 1,401.146 billion CNY by the end of 2024, reflecting an 11.2% increase from the previous year [1][3]. Business Growth Drivers - The company experienced a 4.7% year-on-year increase in total premiums, reaching 671.457 billion CNY, with new business premiums growing by 1.59% [7]. - The new business value (NBV) margin improved to 25.7%, up 3.8 percentage points year-on-year, driven by a combination of volume and price growth [7]. - The individual insurance channel contributed significantly to new business growth, with health insurance premiums increasing by 8.4% to 71.198 billion CNY [7]. Investment Strategy - The company has increased its investment assets by 22.14% to 6.6 trillion CNY by the end of 2024, with a notable shift towards fixed-income assets [7]. - The report indicates a cautious adjustment in investment return assumptions to 4%, aligning with industry standards, which negatively impacted the intrinsic value by 146.5 billion CNY [7].