GUOTAI HAITONG SECURITIES·2025-10-20 12:33Investment Rating - The report maintains an "Accumulate" rating for China Life Insurance [7][14]. Core Views - The company is expected to see a significant increase in net profit attributable to shareholders for the first three quarters of 2025, projected to grow by 50%-70% year-on-year, primarily driven by substantial improvements in investment income and insurance service performance [2][14]. - The report highlights the positive impact of the recovering equity market, which has exceeded expectations, contributing to the company's improved profitability [4][14]. Financial Summary - Revenue Forecasts: - 2023A: 405,040 million - 2024A: 528,567 million - 2025E: 665,291 million (26% increase from 2024A) - 2026E: 657,033 million (1% decrease from 2025E) - 2027E: 728,939 million (11% increase from 2026E) [5][15] - Net Profit (Attributable to Shareholders): - 2023A: 51,184 million - 2024A: 106,935 million (109% increase from 2023A) - 2025E: 181,868 million (70% increase from 2024A) - 2026E: 192,657 million (6% increase from 2025E) - 2027E: 212,462 million (10% increase from 2026E) [5][15] - Earnings Per Share (EPS): - 2023A: 1.81 - 2024A: 3.78 - 2025E: 6.43 - 2026E: 6.82 - 2027E: 7.52 [5][15] - Return on Equity (ROE): - 2023A: 11% - 2024A: 21% - 2025E: 30% - 2026E: 27% - 2027E: 26% [5][15] Investment Drivers - The report emphasizes the strong growth in new business value (NBV), expected to increase by 30.7% year-on-year for the first three quarters of 2025, benefiting from proactive sales strategies before the adjustment of the "831" interest rate [14]. - The company has significantly increased its allocation to equity investments, with core equity assets reaching 969.123 billion, a 35.7% increase from the first half of 2024, which is expected to enhance investment returns [14][15].