中国财险（02328）：中国财险（2328HK）：承保表现改善明显

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 19.80 [1][10]. Core Insights - The company reported a significant improvement in underwriting performance, with a 32.3% year-on-year increase in net profit for 1H25, reaching RMB 24.454 billion [6]. - The combined ratio (COR) decreased by 1.4 percentage points to 94.8%, primarily due to a reduction in expense ratio [6]. - The company expects continued growth in both the auto and non-auto insurance segments, with projected increases in premium income and improvements in underwriting profitability [7][8]. Summary by Sections Financial Performance - In 1H25, the company achieved a net profit of RMB 24.454 billion, reflecting a 32.3% increase year-on-year [6]. - The total investment income for 2025 is projected to be RMB 28.056 billion, with a year-on-year growth of 0.63% [5]. - The expected earnings per share (EPS) for 2025 is RMB 1.86, with a projected growth of 28.89% compared to 2024 [10]. Auto Insurance Segment - The auto insurance premium income rose by 3.4% to RMB 144.065 billion in 1H25, with a COR of 94.2%, down 2.2 percentage points year-on-year [7]. - The company reported a significant increase in premium income from new energy vehicle insurance, which grew by 38.4% year-on-year [7]. Non-Auto Insurance Segment - Non-auto insurance service income increased by 8.9% year-on-year, with a COR of 95.7% [8]. - The company anticipates a 9.2% growth in non-auto insurance service income for 2025, with a projected COR of 98.6% [8]. Investment Performance - The total investment income increased by 26.6% year-on-year, with a non-annualized total investment return of 2.6% [9]. - The return on equity (ROE) for 1H25 improved to 9.0%, with expectations to reach 15% in 2025 [9]. Valuation and Forecast - The target price has been adjusted to HKD 19.80 based on improved earnings forecasts for 2025, 2026, and 2027 [10]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 11.49 in 2024 to 8.91 in 2025 [5].