HUAXI Securities·2025-04-30 11:17Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a significant increase in net profit for Q1 2025, with a year-on-year growth of 39.5%, attributed to improved underwriting management and rising market interest rates [2][3] - The company's new business value (NBV) showed a year-on-year increase of 4.8%, indicating effective product transformation [3] - The company’s total investment assets grew by 3.1% compared to the end of the previous year, although the net investment yield decreased by 0.22 percentage points year-on-year [4] Summary by Relevant Sections Financial Performance - In Q1 2025, the company achieved operating revenue of 1,101.77 billion yuan, a decrease of 8.9% year-on-year, while the net profit attributable to shareholders was 288.02 billion yuan [2] - The weighted average return on equity (ROE) increased by 1.22 percentage points to 5.53% [2] New Business Value and Product Transformation - The NBV increased by 4.8% year-on-year, with new single premiums decreasing by 4.5% to 1,074.34 billion yuan [3] - The proportion of first-year premiums from floating income products rose significantly to 51.72% [3] Investment Performance - The company’s investment assets reached 68,191.73 billion yuan, with a net investment yield of 2.60% [4] - The fair value changes resulted in a loss of 2.434 billion yuan, a significant decline from the previous year [4] Profit Forecast and Valuation - The company maintains a positive outlook on the quality of liabilities, with revenue forecasts for 2025-2027 at 5,245/5,371/5,452 billion yuan and net profit forecasts at 1,059/1,085/1,101 billion yuan [5] - The estimated earnings per share (EPS) for 2025-2027 are projected to be 3.75/3.84/3.90 yuan [5]