CPIC(SH:601601) HUAXI Securities·2025-03-28 06:20Investment 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 company's embedded value reached 560.27 billion yuan, an increase of 6.2% from the previous year, and the weighted average ROE was 16.6%, up 5.2 percentage points year-on-year [2] - The company plans to distribute a cash dividend of 1.08 yuan per share, totaling 10.39 billion yuan, which represents 23.1% of the net profit attributable to shareholders [2] Summary by Sections Financial Performance - In 2024, the company achieved a net profit of 44.96 billion yuan, a year-on-year increase of 64.9%, and an operating profit of 34.43 billion yuan, up 2.5% 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][5] - The company’s total investment income surged to 120.39 billion yuan, a 130.5% increase year-on-year, primarily due to significant growth in fair value changes [8] Life Insurance Segment - The life insurance segment reported a premium income of 261.08 billion yuan, up 3.3% year-on-year, with the agent channel contributing 202.48 billion yuan, a 3.6% increase [4] - The new business value (NBV) for the life insurance segment was 17.29 billion yuan, with a NBV margin of 21.9%, an increase of 8.6 percentage points year-on-year [5] Property and Casualty Insurance Segment - The property and casualty insurance segment achieved a premium income of 201.24 billion yuan, up 6.8% year-on-year, although the underwriting profit decreased by 35.5% to 2.67 billion yuan [6] - The combined ratio for property and casualty insurance was 98.6%, reflecting a 0.9 percentage point increase year-on-year [6] Investment Performance - The company reported a net investment income of 82.80 billion yuan, a year-on-year increase of 6.5%, with a net investment yield of 3.8% [8] - The asset allocation as of the end of 2024 showed bonds accounting for 60.1% of the portfolio, an increase of 8.4 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, with an EPS of 4.73 yuan and 4.80 yuan [9]