CPIC(SH:601601) HUAXI Securities·2025-03-28 06:00Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a significant increase in value and strong investment performance in its 2024 annual report, with a net profit of 44.96 billion yuan, up 64.9% year-on-year [2] - The embedded value reached 560.27 billion yuan, an increase of 6.2% compared to the end of the previous year [2] - The weighted average ROE was 16.6%, an increase of 5.2 percentage points year-on-year [2] - The new business value for life insurance was calculated at 17.29 billion yuan, reflecting a year-on-year increase of 57.7% [2] Summary by Sections Financial Performance - The company achieved a net profit of 44.96 billion yuan in 2024, a year-on-year increase of 64.9% [2] - The operating profit was 34.43 billion yuan, up 2.5% year-on-year [2] - The company plans to distribute a cash dividend of 1.08 yuan per share, totaling 10.39 billion yuan, which accounts for 23.1% of the net profit [2] Life Insurance Segment - The life insurance segment reported a premium income of 261.08 billion yuan, a year-on-year increase of 3.3% [4] - The new business value (NBV) for life insurance was 17.29 billion yuan, up 57.7% year-on-year [5] - The agent channel's NBV was 12.43 billion yuan, an increase of 37.1% year-on-year, while the bank insurance channel's NBV surged by 134.8% to 4.35 billion yuan [5] Property and Casualty Insurance Segment - The property and casualty insurance segment achieved a premium income of 201.24 billion yuan, a year-on-year increase of 6.8% [6] - The combined ratio was 98.6%, with a claims ratio of 70.8% and an expense ratio of 27.8% [6] Investment Performance - The company reported a net investment income of 82.80 billion yuan, a year-on-year increase of 6.5% [8] - Total investment income reached 120.39 billion yuan, up 130.5% year-on-year, primarily due to significant gains in fair value changes [8] - The investment yield was 5.6%, an increase of 3.0 percentage points year-on-year [8] Future Outlook - The company has raised its earnings forecast, expecting revenues of 415.44 billion yuan and 421.88 billion yuan for 2025 and 2026, respectively [9] - The projected net profit for 2025 and 2026 is 45.46 billion yuan and 46.16 billion yuan, respectively [9] - The EPS for 2025 and 2026 is expected to be 4.73 yuan and 4.80 yuan, respectively [9]