NCI(SH:601336) SINOLINK SECURITIES·2025-03-28 02:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][12]. Core Insights - The company reported a significant increase in net profit attributable to shareholders, with a year-on-year growth of 201% to 26.2 billion RMB, and a substantial increase in dividends by 198% [3][5]. - The New Business Value (NBV) grew by 107%, driven by improved margins and a favorable shift in premium structure [2][3]. - The report highlights a strong performance in both individual and bancassurance channels, with NBV growth of 37.2% and 516% respectively [4][5]. Performance Summary - The company's net profit for 2024 reached 26.2 billion RMB, with Q4 alone contributing 5.55 billion RMB, a turnaround from a loss of 0.83 billion RMB in the same period last year [3]. - The total dividend for the year was 2.53 RMB per share, with a payout ratio of 30.1% [3][5]. - The NBV growth was attributed to a margin improvement of 7.9 percentage points to 14.6%, despite a 5% decline in first-year premiums [3][4]. Financial Metrics - The company's total revenue for 2024 is projected at 132.6 billion RMB, with a growth rate of 85.27% [10]. - The expected earnings per share (EPS) for 2024 is 8.41 RMB, reflecting a significant recovery from the previous year's EPS of 2.79 RMB [10][11]. - The Price to Earnings (P/E) ratio for A shares is projected to be 6.11 for 2024, indicating a favorable valuation compared to historical levels [10][11]. Investment Outlook - The report anticipates that the company's NBV growth rate for Q1 could exceed 50%, with expectations for double-digit growth throughout the year [5]. - The asset allocation strategy shows a higher equity exposure compared to peers, suggesting potential benefits from market recovery [5]. - The current Price to Embedded Value (PEV) ratios for A/H shares are 0.56 and 0.29 respectively, positioning the company favorably within historical ranges [5].