PING AN OF CHINA(SH:601318) Guoxin Securities·2025-11-03 09:16Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Insights - The company has shown robust growth in the first three quarters of 2025, with a significant recovery in profitability. The operating profit attributable to the parent company reached 116.26 billion yuan, a year-on-year increase of 7.2%, with growth accelerating quarter by quarter. The net profit attributable to the parent company was 132.86 billion yuan, up 11.5% year-on-year [1] - The new business value (NBV) for life and health insurance increased by 46.2% to 35.72 billion yuan, with a quarterly growth rate of 58.3%. The NBV margin improved by 9.0 percentage points to 30.6%, driven by product structure optimization and policy benefits [2] - The investment portfolio achieved a non-annualized comprehensive investment return of 5.4%, an increase of 1.0 percentage point year-on-year, while the non-annualized net investment return was 2.8%, down 0.3 percentage points due to declining yields on new fixed-income assets [3] Financial Performance Summary - The company's insurance service revenue is projected to grow from 536.44 billion yuan in 2023 to 643.05 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 9.92% [4] - The diluted earnings per share (EPS) are expected to increase from 4.84 yuan in 2023 to 9.26 yuan in 2027, reflecting a strong growth trajectory [4] - The price-to-embedded value (P/EV) ratio is projected to decrease from 0.73 in 2023 to 0.59 in 2027, indicating an attractive valuation over the forecast period [4]