Huachuang Securities·2025-08-27 05:14Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 67.4 CNY [2][7]. Core Insights - The company achieved a net profit of 68.047 billion CNY in H1 2025, a year-on-year decrease of 8.8%, while the operating profit increased by 3.7% to 77.732 billion CNY. The new business value (NBV) for life insurance grew by 39.8% to 22.335 billion CNY, and the combined ratio (COR) for property insurance improved by 2.6 percentage points to 95.2% [2][4]. - The company's embedded value increased by 5.5% to 1.501349 trillion CNY as of H1 2025. The net and comprehensive investment returns were 1.8% and 3.1% (not annualized), respectively, with year-on-year changes of -0.2 percentage points and +0.3 percentage points [2][4]. Summary by Sections Life Insurance Business - The life insurance segment reported an NBV of 22.335 billion CNY, with a margin increase of 9 percentage points to 30.5%. However, first-year premiums decreased by 7.2% year-on-year. The bancassurance channel saw a significant NBV growth of 168.6%, with first-year premiums up by 77.6% [7][8]. - The agent channel's NBV margin improved, but new policies decreased by 26.9% year-on-year, resulting in a 17% increase in NBV [7][8]. Property Insurance Business - The property insurance segment's original premium income rose by 7.1% to 171.857 billion CNY, with a COR of 95.2%. The claims and expense ratios improved, with reductions of 1.4 percentage points and 1.2 percentage points, respectively [7][8]. - The auto insurance segment contributed significantly to profits, with a premium increase of 3.6% to 108.6 billion CNY and a COR of 95.5% [7][8]. Investment Strategy - The company increased its allocation to FVOCI stocks while reducing bond holdings. Total investment assets grew by 8.2% to 6.2 trillion CNY as of H1 2025 [7][8]. - The company has been actively acquiring bank stocks, which are expected to be classified under FVOCI [7][8]. Financial Forecast - The report adjusts the EPS forecast for 2025-2027 to 7.1, 8.2, and 9.1 CNY, respectively, with a projected PEV of 0.8 times for 2025 [7][8].