Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 16.00 [8][9] Core Insights - The company reported a significant improvement in underwriting performance, with a net profit of RMB 11.312 billion in Q1 2025, representing a year-on-year increase of 92.7% [1] - The combined operating ratio (COR) improved to 94.5%, a decrease of 3.4 percentage points year-on-year, primarily due to fewer natural disasters in the first quarter [2] - Total investment yield increased by 0.4 percentage points year-on-year to 1.2%, driven by better equity investment performance [1][4] Summary by Sections Underwriting Performance - The company experienced a substantial improvement in underwriting performance, with COR decreasing to 94.5% and underwriting profit increasing by 183.0% to RMB 6.653 billion [2] - The company is expected to maintain a leading position in the industry, with projected COR for 2025 at 97.1% [2] Premium Growth - Insurance service revenue grew by 6.1% year-on-year in Q1 2025, driven mainly by non-auto insurance [3] - Auto insurance revenue showed modest growth of 2.8%, while non-auto insurance revenue increased by 11.7% [3] Investment Income - Total investment yield for Q1 2025 was 1.2%, a year-on-year increase of 56% in total investment income [4] - The company’s net assets increased by 4.7% quarter-on-quarter due to rising profits [4] Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025 has been raised to RMB 1.81, with target prices based on discounted cash flow (DCF) valuation remaining unchanged at HKD 16.00 [5]
中国财险（02328）：承保表现显著改善