2024-02-19 16:00Investment Rating - The report assigns an "Outperform" rating to China Life Insurance with a target price of RMB 44.70 [2][16]. Core Views - China Life Insurance reported a January 2024 premium income of approximately RMB 206.6 billion, reflecting a 2.2% year-on-year increase. This growth is attributed to early preparations for the new year and a lower base from the previous year's Spring Festival [2][15]. - The company is expected to maintain double-digit growth in its new business value (NBV) for 2023, with a projected annual increase of around 12% [3][15]. - The report highlights that the company's total premium income for 2023 reached RMB 641.5 billion, up 4.3% year-on-year, with quarterly growth rates showing fluctuations [3][15]. Financial Performance Summary - In 2023, the total premium income was RMB 641.5 billion, with quarterly growth rates of 3.9%, 14.7%, -5.1%, and 2.6% [3][15]. - The new single premiums and installment premiums grew by 14.8% and 16.0% respectively in the first three quarters of 2023, although there was a significant drop in Q3 due to product transitions [3][15]. - The report indicates that the company's investment returns were under pressure in 2023, with total investment return rates of 2.81% for the first three quarters, down 1.22 percentage points year-on-year [4][20]. Valuation and Market Position - The valuation remains low, with a current stock price corresponding to a 2024E price-to-earnings value (PEV) of 0.59x. The report sets a target price of RMB 44.70, maintaining an "Outperform" rating [4][16]. - The company is focusing on eight major projects and marketing system reforms to sustain stable operations and maintain market leadership [4][16].