CHINA TAIPING(00966) SINOLINK SECURITIES·2025-04-30 05:39Investment Rating - The report maintains a "Buy" rating for the company, suggesting a potential upside of over 15% in the next 6-12 months [4]. Core Views - In Q1 2025, the company reported a net profit of 3 billion HKD, reflecting a year-on-year increase of 87%, primarily due to a reduction in income tax expenses [3]. - The company's net assets grew by 15.4% compared to the end of the previous year, attributed to rising interest rates in Q1 [3]. - The company is effectively transitioning towards dividend insurance, with significant market share in both individual and bank insurance channels, achieving 98.9% and 88.6% respectively in early 2025 [3]. Financial Performance - The company recorded an insurance service revenue of 107.489 billion HKD in 2023, with a projected growth to 115.036 billion HKD in 2025, reflecting a growth rate of 3.39% [9]. - The net profit attributable to shareholders is expected to increase from 6.19 billion HKD in 2023 to 10.564 billion HKD in 2025, indicating a growth rate of 25.29% [9]. - The projected earnings per share (EPS) is expected to rise from 1.72 HKD in 2023 to 2.94 HKD in 2025 [9]. Valuation Metrics - As of now, the company's price-to-embedded value (PEV) stands at 0.20 times, indicating a low valuation and suggesting potential investment opportunities [4]. - The report anticipates a return on equity (ROE) of 12.04% in 2025, increasing to 14.71% by 2027 [9]. - The price-to-earnings (P/E) ratio is projected to decrease from 6.03 in 2023 to 3.53 in 2025, indicating an attractive valuation [9].