CPIC(SH:601601) Tianfeng Securities·2025-03-28 09:45Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [5]. Core Views - The company's core operating indicators for the year 2024 met expectations, with a significant profit increase driven by investment returns, leading to a net profit of 45 billion yuan, up 64.9% year-on-year [1]. - The company is expected to benefit from the recovery of the capital market, with projected net profits for 2025-2027 being 46.4 billion, 48.1 billion, and 49.7 billion yuan, respectively, reflecting growth rates of 2.4%, 3.7%, and 3.3% [4]. Summary by Sections 1. Core Operating Performance - The company achieved a net profit attributable to shareholders of 45 billion yuan in 2024, a year-on-year increase of 64.9%, with Q4 alone contributing 6.65 billion yuan, up 61.9% year-on-year [1]. - The group's embedded value (EV) reached 562.1 billion yuan, a 6.2% increase year-on-year, while the comparable new business value (NBV) and NBV margin grew by 57.7% and 8.6 percentage points, respectively [1]. 2. Life Insurance Business - The life insurance segment showed significant transformation results, with an EV of 421.8 billion yuan, up 4.9% year-on-year, and an NBV of 13.3 billion yuan, reflecting a 57.7% increase [2]. - The individual insurance channel maintained steady growth, with new premium income of 36.9 billion yuan, a 14.0% increase year-on-year, and a stable agent scale of 188,000 [2]. 3. Property and Casualty Insurance Business - The property and casualty insurance segment reported a premium income of 201.2 billion yuan, up 6.8% year-on-year, with non-auto business growing faster at 10.7% [3]. - The comprehensive cost ratio for the property and casualty business was 98.6%, a slight increase of 0.9 percentage points, primarily due to rising claims [3]. 4. Investment of Insurance Funds - The company reported a net investment yield of 3.8%, a decrease of 0.2 percentage points year-on-year, while total investment yield increased by 3.0 percentage points to 5.6% [4]. - The asset allocation strategy saw a significant increase in bond investments, with the bond allocation ratio reaching 60.1%, up 8.4 percentage points year-on-year [4].