Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 22.2, representing a potential upside of 22.3% from the current price of HKD 18.17 [5]. Core Insights - The company has demonstrated strong performance in the first half of 2025, achieving insurance service revenue of RMB 249 billion, a year-on-year increase of 5.6%, with net profit reaching RMB 245 billion, up 32.3% [7]. - The comprehensive cost ratio (COR) has significantly improved, with the overall COR reduced to 94.8%, a decrease of 1.4 percentage points year-on-year, indicating effective risk management and operational efficiency [7]. - The company has achieved record investment returns, with total investment income of RMB 172.6 billion in the first half of 2025, reflecting a year-on-year growth of 26.6% [7]. - The report highlights the company's strong alpha capability and sustainable profitability model, supported by a stable long-term return on equity (ROE) and dividend yield [7]. Financial Summary - For the fiscal year ending December 31, 2023, the company is projected to have insurance service revenue of RMB 457.2 billion, with a net profit of RMB 24.6 billion, reflecting a year-on-year decline of 15.7% [4][8]. - The forecast for net profit growth shows a significant rebound in 2024, with an expected increase of 34.9% to RMB 33.2 billion, followed by further growth in subsequent years [4][8]. - The company aims to maintain a comprehensive cost ratio of below 96% for auto insurance and below 99% for non-auto insurance in 2025 [7].
中国财险（02328）：综合成本率改善驱动业绩增长，财险龙头地位愈发稳固