Changjiang Securities·2025-05-05 23:31Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The current asset side of the insurance industry is the main contradiction, and the company, as a pure life insurance provider, possesses industry-leading sensitivity and elasticity, recommended as a quality beta asset allocation [2][10]. - The company's current stock price corresponds to a 2025 PEV of 0.67 times, which is at a historical low, and the recommendation to buy is sustained [2][10]. Summary by Sections Financial Performance - In the first quarter of 2025, the company achieved a net profit attributable to shareholders of 28.8 billion yuan, a year-on-year increase of 39.5%. The comparable new business value grew by 4.8% year-on-year [6][10]. - The significant decrease in insurance service fees, down 32.8% to 27.58 billion yuan, was the main reason for the profit improvement [10]. - The company's net assets attributable to shareholders increased by 4.5% quarter-on-quarter, primarily due to accounting standard differences [10]. New Business Value - The new business value on a comparable basis increased by 4.8% year-on-year, mainly due to improvements in value rates [10]. - The new single premium was 107.43 billion yuan, a year-on-year decrease of 4.5%, likely influenced by a shift towards dividend insurance products [10]. - The company's surrender rate remained stable at 0.29% [10]. Team and Operational Insights - As of the end of the first quarter of 2025, the individual insurance team size was 596,000, a decrease of 3.1% from the end of 2024 and a year-on-year decrease of 4.2%, indicating stability [10]. - The quality of the team has improved, with effective improvement in retention rates and team enhancement rates, reflecting the success of team reforms [10]. Investment Recommendations - The company is recommended as a high-elasticity target due to its position as a pure life insurance company, which provides significant sensitivity and elasticity in the current insurance industry landscape [10]. - Despite certain pressures in the individual insurance channel, the liability side is not a decisive factor for short-term performance [10].