Investment Rating - The report maintains a "Recommended" rating for Sunshine Insurance (06963.HK) [1][7]. Core Views - The company achieved a net profit of 3.389 billion yuan in H1 2025, representing a year-on-year increase of 7.8% [1]. - Sunshine Life's New Business Value (NBV) increased by 47.3% year-on-year to 4.008 billion yuan, indicating strong growth in the insurance sector [1]. - The group's embedded value rose by 11% from the end of the previous year to 128.486 billion yuan as of H1 2025 [1]. - The investment return rates for net, total, and comprehensive investments were 3.8%, 4%, and 5.1%, respectively, with slight year-on-year changes [1]. Financial Summary - For 2024, the projected operating revenue is 90.27 billion yuan, with a year-on-year growth rate of 15.4% [3]. - The expected net profit for 2025 is 5.908 billion yuan, reflecting an 8.42% increase compared to 2024 [3]. - The earnings per share (EPS) is forecasted to be 0.51 yuan for 2025, with a price-to-earnings (P/E) ratio of 8.1 [3]. - The target price for the stock is set at 4.88 HKD, while the current price is 4.48 HKD [3]. Business Performance - The individual insurance channel's NBV increased by 23.5% to 1.226 billion yuan, while the bank insurance channel's NBV surged by 53% to 2.452 billion yuan in H1 2025 [7]. - The new single premium decreased by 3% year-on-year to 19 billion yuan, primarily due to a decline in individual insurance business [7]. - The company has seen a shift towards floating income and protection products, which now account for over 50% of new single premiums in the individual insurance channel [7]. - The overall premium income for Sunshine Property & Casualty Insurance grew by 2.5% to 25.3 billion yuan, with a combined ratio (COR) improvement to 98.8% [7]. Investment Strategy - The report suggests that the favorable equity market conditions will enhance the investment performance of insurance companies, with Sunshine Insurance having a higher allocation in stocks [7]. - The company is expected to maintain steady growth in embedded value due to ongoing policy adjustments driving high NBV growth [7].
阳光保险（06963）：2025 年中报点评：NBV高增，分红险转型成效初显