Huachuang Securities·2026-01-24 07:05Investment Rating - The report maintains a "Buy" rating for China Taiping (00966.HK) with a target price of HKD 29.6 [2][9]. Core Views - The company's net profit attributable to shareholders for 2025 is expected to increase by 215% to 225%, translating to a profit range of HKD 26.6 billion to HKD 27.4 billion [2][8]. - The significant growth is attributed to improved investment performance and a one-time impact from new corporate income tax policies in the insurance sector [8][9]. - The report highlights that the company's stock allocation is 8.3%, with 65.1% in FVTPL (Fair Value Through Profit or Loss) assets, and a 15.23% increase in the Shanghai Composite Index in the second half of 2025 [8][9]. Financial Summary - Key financial indicators for China Taiping are as follows: - Insurance service performance (in million HKD): 2024A: 22,024, 2025E: 23,369, 2026E: 24,263, 2027E: 25,325 [4]. - Net profit attributable to shareholders (in million HKD): 2024A: 8,432, 2025E: 26,828, 2026E: 16,538, 2027E: 17,934 [4]. - Earnings per share (in HKD): 2024A: 2.35, 2025E: 7.46, 2026E: 4.60, 2027E: 4.99 [4]. - Price-to-earnings ratio: 2025E: 3.1, 2026E: 5.0, 2027E: 4.6 [4]. - Price-to-book ratio: 2025E: 0.8, 2026E: 0.7, 2027E: 0.6 [4]. Investment Outlook - The report anticipates continued strong performance in the first half of 2026 due to active equity markets, although growth may face pressure in the second half due to base effects [9]. - The expected EVPS (Embedded Value per Share) for 2025-2027 is projected at HKD 56.9, 65.8, and 75.6 respectively [9].