China Life(SH:601628) KAIYUAN SECURITIES·2025-03-28 02:44Investment Rating - The investment rating for China Life Insurance is "Buy" (maintained) [2][14] Core Views - The report indicates that despite prudent assumption adjustments, the EV (Embedded Value) continues to grow significantly, and the liability side shows steady growth [5][6] - The company is expected to achieve a net profit of 106.9 billion yuan in 2024, representing a year-on-year increase of 109%, with a new business value (NBV) of 33.7 billion yuan, reflecting a comparable growth rate of 24.3% [5][6] - The report forecasts NBV growth rates of 9.2%, 9.7%, and 10.1% for 2025, 2026, and 2027 respectively, with corresponding EV growth rates of 7.9%, 8.0%, and 8.0% [5][6] Financial Performance Summary - In 2024, the total investment income is projected to reach 308.3 billion yuan, a year-on-year increase of 138%, driven by strong performance in both equity and bond markets [7] - The company’s total investment assets are expected to grow to 6.61 trillion yuan by the end of 2024, up 22.1% from the beginning of the year [7][10] - The report highlights a cash dividend of 10.39 billion yuan for the year, with a dividend payout ratio of 30.2% [5][6] Valuation Metrics - The report provides a forecast for key financial metrics, including a projected net profit of 117.1 billion yuan for 2025, with an EPS of 4.1 yuan [5][8] - The P/EV ratio is expected to be 0.7 for 2025, indicating a favorable valuation compared to the company's growth prospects [8][10] - The report also notes that the company’s internal value is projected to reach 1.51 trillion yuan by 2025, reflecting a year-on-year growth of 7.9% [8][10]