Investment Rating - The report assigns a "Buy" rating to China Pacific Insurance (2328 HK) with a target price raised to HKD 24.00, indicating a potential upside of 27.7% from the current closing price of HKD 18.79 [1][12]. Core Insights - The company has demonstrated strong performance in both underwriting and investment, leading to an upward revision of profit forecasts. The expected net profit growth for 2025 is projected at 28% [7][9]. - The report highlights a significant improvement in underwriting profit, with a combined ratio (COR) of 94.8%, down 1.4 percentage points year-on-year, driven by a decrease in expense ratios [7]. - Investment income has also shown robust growth, with total investment income increasing by 26.6% year-on-year, outperforming peers [7]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 457,203 million - 2024: RMB 485,223 million - 2025E: RMB 512,327 million - 2026E: RMB 537,740 million - 2027E: RMB 563,012 million - Year-on-year growth rates for revenue are expected to decline gradually from 7.7% in 2023 to 4.7% in 2027 [5][8]. - Net profit estimates are as follows: - 2023: RMB 24,585 million - 2024: RMB 32,173 million - 2025E: RMB 41,278 million - 2026E: RMB 44,756 million - 2027E: RMB 47,883 million - The projected earnings per share (EPS) for 2025 is RMB 1.86, with a price-to-earnings (P/E) ratio of 9.3 [5][8]. Profitability Metrics - The report indicates a return on equity (ROE) of 9% for the first half of 2025, an increase of 1.3 percentage points year-on-year [7]. - The company plans to distribute a mid-term dividend of RMB 0.24 per share, reflecting a year-on-year increase of 15.4% [7]. - The underwriting profit is expected to show significant growth, with a forecasted increase of 167% in 2025 [8][9].
中国财险（02328）：中国人保财险（2328HK）