Hua Yuan Zheng Quan·2025-06-23 11:07Investment Rating - The report assigns a "Buy" rating for China Life Insurance, indicating a positive outlook for the company's stock performance in the near term [5][10]. Core Insights - China Life Insurance's Q1 2025 net profit attributable to shareholders increased by 39.5% year-on-year to 28.8 billion RMB, with net assets rising by 4.5% to 532.5 billion RMB, showcasing stable performance [5][6]. - The company's strong asset-liability matching and leading position in the transformation to dividend insurance are highlighted as key competitive advantages [7]. - The report anticipates a recovery in new business value and new single premiums in 2025, driven by strategic adjustments in product offerings and sales approaches [6][7]. Financial Performance Summary - For 2023A, the operating revenue is projected at 405 billion RMB, with a year-on-year growth rate of 1.4%. The net profit attributable to shareholders is expected to be 51.2 billion RMB, reflecting a decline of 13.8% [9]. - The forecast for 2025E includes operating revenue of 553.8 billion RMB and net profit of 109 billion RMB, with respective growth rates of 4.8% and 1.9% [10][11]. - The earnings per share (EPS) for 2025E is estimated at 3.85 RMB, with a price-to-earnings (P/E) ratio of 10.4 [9][10]. Valuation Metrics - The report indicates that the intrinsic value per share for 2025E is projected at 55.1 RMB, with a corresponding price-to-intrinsic value (P/EV) ratio of 0.73 [10]. - The valuation metrics suggest that the stock is currently undervalued, providing a favorable investment opportunity [10].