Huachuang Securities·2025-04-30 10:06Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 9.2 yuan [2][8]. Core Insights - The company achieved a year-on-year increase of 43.4% in net profit attributable to shareholders, reaching 12.8 billion yuan in Q1 2025. The new business value (NBV) for life insurance increased by 31.5% on a comparable basis [2][4]. - As of the end of Q1 2025, the net assets attributable to shareholders rose by 3.9% to 279.3 billion yuan [2]. - The company's combined ratio (COR) improved significantly, standing at 94.5%, which is better than its peers [2][8]. - Investment-driven growth is a key factor behind the company's strong performance, with investment income increasing by 97 billion yuan year-on-year [2][8]. Financial Performance Summary - Total revenue is projected to grow from 621.972 billion yuan in 2024 to 725.562 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 5.7% [4]. - Net profit attributable to shareholders is expected to rise from 42.869 billion yuan in 2024 to 55.081 billion yuan in 2027, reflecting a CAGR of about 11.2% [4]. - Earnings per share (EPS) are forecasted to increase from 0.97 yuan in 2024 to 1.25 yuan in 2027 [4]. - The price-to-earnings (P/E) ratio is projected to decrease from 7.3x in 2024 to 5.7x in 2027, indicating potential undervaluation [4]. Business Segment Performance - The property and casualty insurance segment reported a premium income growth of 3.7% year-on-year, with a notable improvement in underwriting profit [2][8]. - Life insurance's NBV growth is attributed to new business value contributions, with a significant increase in health insurance premiums [2][8]. - The company’s investment strategy has been effective, with a focus on bonds and equities leading to substantial investment income growth [2][8].