Huachuang Securities·2025-08-29 05:46Investment Rating - The report maintains a "Recommended" rating for China Pacific Insurance (601601) with a target price of 47.5 CNY [2][7]. Core Views - The company has turned its performance growth positive, continuing to drive the transformation towards dividend insurance [2]. - The net profit attributable to shareholders for the first half of 2025 increased by 11% year-on-year to 27.9 billion CNY, with the operating profit also showing a 7.1% increase [7]. - The new business value (NBV) for the life insurance segment saw a significant increase of 32.3% year-on-year, reaching 9.5 billion CNY [7]. Financial Performance Summary - Revenue Growth: Total revenue is projected to grow from 404,089 million CNY in 2024 to 450,095 million CNY in 2027, with a year-on-year growth rate of 24.7% in 2024, slowing to 5.3% by 2027 [3][8]. - Net Profit: The net profit attributable to shareholders is expected to rise from 44,960 million CNY in 2024 to 54,567 million CNY in 2027, with a peak growth rate of 64.9% in 2024 [3][8]. - Earnings Per Share (EPS): EPS is forecasted to increase from 4.7 CNY in 2024 to 5.7 CNY in 2027 [3][8]. - Valuation Ratios: The price-to-earnings (P/E) ratio is expected to decrease from 8.5 in 2024 to 7.0 in 2027, indicating improving valuation [3][8]. Business Segment Insights - Life Insurance: The life insurance segment's new business value (NBV) increased significantly, with a notable rise in the proportion of dividend insurance in new premium income, reaching 42.5% [7]. - Property and Casualty Insurance: The property and casualty insurance segment reported a slight increase in original premium income by 0.9% year-on-year, with a combined ratio of 96.3% [7]. - Investment Performance: The group’s investment assets grew by 7% year-on-year to 2.92 trillion CNY, with a focus on increasing allocations to bonds and equities [7].