Soochow Securities·2025-09-12 12:35Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (601601) [1] Core Views - China Pacific Insurance plans to issue approximately HKD 15.6 billion in zero-coupon H-share convertible bonds to support its main insurance business and the implementation of three major strategies: "Great Health", "Artificial Intelligence+", and "Internationalization" [2][7] - The issuance of convertible bonds is expected to enhance the company's capital strength at a low cost, supporting its main business development [7] - The report forecasts that the company's net profit attributable to shareholders will be CNY 51.6 billion, CNY 52.7 billion, and CNY 55.3 billion for the years 2025 to 2027, respectively [7] Financial Forecasts - Total revenue is projected to be CNY 404.1 billion in 2024, with a year-on-year growth of 24.74% [1] - The net profit for 2024 is expected to be CNY 44.96 billion, reflecting a significant year-on-year increase of 64.95% [1] - The report indicates that the company's price-to-earnings (P/E) ratio is expected to be 7.99 in 2024 and decrease to 6.81 by 2027 [9] - The price-to-embedded value (P/EV) is projected to decline from 0.64 in 2024 to 0.52 in 2027, indicating a potential undervaluation [9] Market Data - The closing price of China Pacific Insurance is CNY 37.32, with a market capitalization of CNY 359.03 billion [5] - The company has a price-to-book (P/B) ratio of 1.27 and a net asset value per share of CNY 29.30 [5][6]