Investment Rating - The report maintains a "Buy" rating for China Pacific Insurance (2328) [6][10]. Core Views - The company is expected to see a net profit increase of 40%-60% year-on-year for the first three quarters of 2025, driven by improvements in underwriting profit and investment income [2][10]. - The target price has been raised to HKD 22.82, corresponding to a 2025 P/B ratio of 1.6 times [10]. Financial Summary - Insurance service revenue is projected to grow from RMB 457,203 million in 2023 to RMB 559,006 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 5% [5]. - Net profit is expected to increase significantly from RMB 24,585 million in 2023 to RMB 56,609 million in 2027, with a notable growth rate of 47.9% in 2025 [5]. - The price-to-earnings (PE) ratio is forecasted to decrease from 15.44 in 2023 to 6.71 in 2027, indicating a potential undervaluation of the stock [5]. Key Drivers - The recovery of the equity market and significant improvement in expense ratios are identified as catalysts for the company's performance [4][10]. - The company has effectively reduced claims and controlled costs, with expectations of a combined ratio (COR) of 96% for auto insurance and 99% for non-auto insurance in 2025 [10]. Investment Strategy - The company is optimizing its asset allocation, increasing its exposure to high-quality equity assets, which is expected to enhance total investment income significantly [10].
中国财险（02328）：2025年前三季度业绩预增公告点评：承保投资共振，盈利大幅增长