Hua Yuan Zheng Quan·2025-09-08 04:19Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The new business value (NBV) has shown a significant quarter-on-quarter increase, and the interim dividend exceeded expectations [5][6] - The company's mid-year performance aligns with market expectations, with revenue and net profit attributable to shareholders increasing by 2.1% and 6.9% year-on-year, respectively [6][10] - The total investment return rate decreased by 30 basis points to 3.29% year-on-year, while the interim dividend increased by 19%, surpassing the growth rate of net profit [6] Financial Performance Summary - Revenue for the first half of 2025 reached 239.2 billion yuan, and net profit attributable to shareholders was 40.9 billion yuan [6] - The company's net assets, embedded value (EV), and service margin (CSM) increased by 2.7%, 5.5%, and 1.6% respectively compared to the beginning of the year [6] - The NBV growth rate was 20.3% on a comparable basis, significantly higher than the 4.8% growth in the first quarter of 2025, indicating strong sales performance in the second quarter [10] Investment Business Insights - The company experienced a substantial increase in realized investment income, with the proportion of realized gains in total investment income higher than the previous year [11] - The asset allocation strategy has shifted, with an increase in core secondary equity (stocks + equity funds) by 1.4 percentage points to 13.6% [11] Profit Forecast and Valuation - The forecasted net profit for 2025-2027 is 121.8 billion, 124.5 billion, and 143.1 billion yuan, with year-on-year growth rates of 13.9%, 2.2%, and 14.9% respectively [12] - The estimated embedded value per share for 2025-2027 is projected to be 55.6, 60.2, and 65.3 yuan, with the current stock price corresponding to a price-to-embedded value (P/EV) of 0.72, 0.66, and 0.61 times [12]