EBSCN·2026-03-27 01:28Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Pacific Insurance (601601.SH, 2601.HK) [1] Core Insights - In 2025, China Pacific Insurance reported operating revenue of CNY 435.16 billion, a year-on-year increase of 7.7%. The net profit attributable to shareholders was CNY 53.51 billion, up 19.0% year-on-year. The new business value (NBV) reached CNY 18.61 billion, reflecting a robust growth of 40.1% year-on-year [1][11] Financial Performance Summary - Revenue and Profitability: - Operating revenue for 2025 was CNY 435.16 billion, with a net profit of CNY 53.51 billion, and an operating profit of CNY 36.52 billion [1] - The weighted average return on equity (ROE) was 18.0%, an increase of 1.4 percentage points year-on-year [1] - New Business Value: - The NBV for 2025 was CNY 18.61 billion, showing a significant increase of 40.1% year-on-year, driven by the growth in the bancassurance channel [6][11] - Investment Returns: - The net investment yield was 3.4%, down 0.4 percentage points year-on-year, while the total investment return was 5.7%, up 0.1 percentage points year-on-year [1][10] Business Segment Performance - Life Insurance: - The bancassurance channel saw a rapid increase in new business value, with new premium income reaching CNY 295.86 billion, a year-on-year increase of 12.7% [6] - The average monthly first-year premium per core agent increased by 17.1% year-on-year to CNY 64,000 [5] - Property Insurance: - The property insurance premium income was CNY 201.50 billion, with a stable growth in auto insurance premiums [7] - The combined ratio improved by 1.1 percentage points to 97.5%, driven by a decrease in both loss and expense ratios [9] Future Outlook - The report projects net profit for 2026 and 2027 to be CNY 63.2 billion and CNY 72.7 billion, respectively, with an additional forecast for 2028 at CNY 83.9 billion [11][12] - The valuation metrics indicate that the A/H share prices correspond to a price-to-earnings value (PEV) of 0.52 for A-shares and 0.39 for H-shares, maintaining the "Buy" rating [11]