China Life(SH:601628) Tianfeng Securities·2025-03-27 14:23Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [7]. Core Views - The company achieved a net profit attributable to shareholders of 106.9 billion yuan in 2024, representing a year-on-year increase of 109%. The embedded value (EV) reached 1.4 trillion yuan, up 11.2% year-on-year, and the new business value (NBV) was 33.7 billion yuan, which is a 24% increase compared to the previous year using the old economic assumptions [1]. - The company is expected to continue high-quality development on the liability side, benefiting from the recovery of the capital market, which enhances the performance of the investment side, demonstrating high elasticity in profits [5]. Individual Channels - The first-year premium from individual insurance channels was 100.2 billion yuan, an increase of 9.2% year-on-year, with long-term products (10 years and above) contributing 56.6 billion yuan, up 14.3% year-on-year, accounting for 47.5% of the first-year premium [2]. - The NBV from individual insurance channels increased by 18.4% year-on-year, outpacing the growth of first-year premiums, indicating significant results from channel transformation [2]. - The workforce size remained stable at 615,000, with a slight decrease of 19,000 from the previous year, while productivity improved with a 15% year-on-year increase in monthly average first-year premium per person [2]. Bancassurance Channel - The bancassurance channel experienced a slight decline, with first-year premiums at 18.8 billion yuan, down 9.4% year-on-year, attributed to sales pressure from the "reporting and operation integration" initiative [3]. Investment of Insurance Funds - The total investment income for the company reached 308.3 billion yuan, a significant increase of 138% year-on-year, with an investment yield of 5.50%, up 2.93 percentage points year-on-year. The fair value changes contributed 118.2 billion yuan, compared to only 4.2 billion yuan in the same period last year [4]. - The asset allocation saw a significant increase in bond investments, with bonds accounting for 59.04% of the portfolio, while stock allocation was 7.58%, reflecting a strategic shift towards fixed-income assets [4]. - The company adjusted its accounting treatment by reducing the proportion of trading financial assets and increasing the allocation to OCI bonds [5]. Financial Forecast - The company forecasts net profits attributable to shareholders of 107.7 billion yuan, 108.2 billion yuan, and 109.9 billion yuan for 2025, 2026, and 2027 respectively, reflecting a cautious adjustment from previous estimates [5].