PICC(601319) Haitong Securities·2024-02-25 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][5]. Core Views - The report highlights that in January 2024, the company reported total insurance premium income of 628 billion yuan for property insurance, 320 billion yuan for life insurance, and 112 billion yuan for health insurance, reflecting year-on-year changes of +2.7%, -18.5%, and -4.5% respectively [5][6]. - The report indicates that the growth rate of both auto and non-auto insurance premiums in January 2024 was low, with property insurance premium income growing by 2.7% year-on-year, and auto insurance business growing by 2.9% [5][6]. - The report emphasizes the competitive advantage of the company's property insurance business, particularly in auto insurance, where the company is expected to outperform smaller insurers due to its lower claims ratio and controllable channel costs [6][8]. Summary by Sections Investment Rating - The company is rated "Outperform the Market" with a target price range of 6.77 to 7.32 yuan per share based on a segmented valuation approach [6][8]. Financial Performance - The company’s revenue is projected to grow from 660,254 million yuan in 2023E to 723,792 million yuan in 2024E, representing a year-on-year growth of 9.6% [7][10]. - Net profit is expected to rebound from 20,477 million yuan in 2023E to 27,323 million yuan in 2024E, indicating a growth rate of 33.4% [7][10]. - The report forecasts earnings per share (EPS) to increase from 0.46 yuan in 2023E to 0.62 yuan in 2024E [7][10]. Segment Valuation - The segmented valuation for the company includes a price-to-book (PB) ratio of 1.1 to 1.2 for property insurance, and a price-to-embedded value (P/EV) of 0.45 to 0.5 for life and health insurance [8][9]. - The estimated value for the property insurance segment is between 202,795 million yuan and 221,230 million yuan [8][9]. Market Comparison - The report compares the company’s valuation metrics with other listed insurance companies, indicating a lower price compared to peers, which may present a buying opportunity [9][10].