BOCOM International·2025-08-29 08:21Investment Rating - The report maintains a "Buy" rating for China Life Insurance (2628 HK) with a target price raised from HKD 19 to HKD 30, indicating a potential upside of 25.4% [1][5][10]. Core Insights - The company's profit growth has slowed compared to the first quarter, primarily due to fluctuations in market interest rates affecting insurance service performance, although investment income has shown recovery [5]. - Premium income has increased by 7.3% year-on-year, driven by renewal and bancassurance premiums, while new single premiums have decreased by 16.5% [5]. - The new business value has grown by 20.3% year-on-year, with a notable increase in the value rate, indicating improved profitability from new policies [5]. - Investment returns remain stable, with total investment income rising by 4.2% year-on-year, and the proportion of equity investments has increased [5]. Financial Overview - Revenue projections for the years 2023 to 2027 are as follows: RMB 405,040 million in 2023, RMB 528,567 million in 2024, RMB 508,397 million in 2025E, RMB 525,739 million in 2026E, and RMB 545,581 million in 2027E [4][11]. - Net profit estimates are projected at RMB 51,184 million for 2023, RMB 106,935 million for 2024, RMB 94,969 million for 2025E, RMB 104,536 million for 2026E, and RMB 112,912 million for 2027E [4][11]. - The company’s earnings per share (EPS) are expected to be RMB 1.81 in 2023, RMB 3.78 in 2024, RMB 3.36 in 2025E, RMB 3.70 in 2026E, and RMB 3.99 in 2027E [4][11]. Business Performance - The company plans to distribute an interim dividend of RMB 0.238 per share, a 19% increase year-on-year, with a dividend payout ratio of 16.4% [5]. - The new business value for 2025E is projected at RMB 39,257 million, reflecting a 16.5% year-on-year growth [6][7]. - The return on average equity (ROAE) is expected to be 17.7% in 2025E, indicating strong profitability relative to equity [6][11].