Investment Rating - The report maintains a "Strong Buy" rating for China Pacific Insurance (02328.HK) [3] Core Views - The company achieved a net profit of 40.268 billion RMB in the first three quarters of 2025, representing a year-on-year increase of 50.5%, with Q3 alone showing a remarkable growth of 91.5% [1][7] - The comprehensive cost ratio improved to 96.1%, down by 2.1 percentage points year-on-year, while the annualized total investment return rate was 5.4%, up by 0.8 percentage points [1][7] - The growth in net profit was driven by both underwriting and investment performance, with underwriting profit reaching 14.865 billion RMB, a significant increase of 130.7% year-on-year [7] Financial Data and Valuation - Total revenue is projected to grow from 457.203 billion RMB in 2023 to 687.464 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 15% [2] - The net profit is expected to increase from 24.585 billion RMB in 2023 to 56.293 billion RMB in 2027, reflecting a CAGR of around 11% [2] - The price-to-earnings (PE) ratio is forecasted to decrease from 15.42 in 2023 to 6.73 by 2027, indicating an attractive valuation [2] Business Performance - The company reported a 3.5% year-on-year increase in original insurance premiums to 443.182 billion RMB in the first three quarters [7] - The car insurance service revenue was 227.632 billion RMB, up 3.7% year-on-year, while non-car insurance service revenue increased by 9.3% to 158.289 billion RMB [7] - The report highlights the company's competitive advantage as a leading player in the property and casualty insurance sector, with stable return on equity (ROE) at 11.6% and a high dividend yield [3][7]
中国财险（02328）：资负共振驱动利润高增