CHINA TAIPING(00966) CMS·2025-05-05 12:50Investment Rating - The report maintains a "Strong Buy" investment rating for China Taiping [3] Core Views - China Taiping's life insurance and property insurance profits nearly doubled, with significant results from the transformation of dividend insurance [1][6] - The net profit of Taiping Life reached 2.992 billion HKD in Q1 2025, a year-on-year increase of 87.5%, while Taiping Property achieved a net profit of 294 million HKD, also up 86.6% year-on-year [1][6] - The report anticipates a double-digit growth in New Business Value (NBV), with a significant share of floating income products leading the industry [6] - The property insurance segment showed improved underwriting profitability, with a 1.6% year-on-year increase in signed premiums [6] Financial Data and Valuation - Total revenue is projected to grow from 107,489 million HKD in 2023 to 130,652 million HKD by 2027, with a compound annual growth rate (CAGR) of approximately 6% [2] - The net profit attributable to shareholders is expected to rise from 6,190 million HKD in 2023 to 13,083 million HKD in 2027, reflecting a CAGR of about 16% [2] - The price-to-earnings (PE) ratio is projected to decrease from 6.42 in 2023 to 3.04 in 2027, indicating increasing valuation attractiveness [2] Target Valuation - The current stock price is 10.76 HKD, with a total market capitalization of 38.7 billion HKD [3] - The report suggests that if the tax rate for the group returns to the industry average, there could be significant profit growth potential [6]