Investment Rating - The report maintains a "Buy" rating and raises the target price to HKD 13.35 per share, corresponding to a 2024 P/B of 1.2 times [3][4]. Core Insights - The company reported a net profit of RMB 24.566 billion for 2023, a year-on-year decrease of 15.6%, which aligns with expectations. The dividend payout ratio increased from 39.9% in 2022 to 44.3% in 2023, exceeding market expectations [3]. - The underwriting profit was RMB 10.189 billion, down 29.1% year-on-year, with a combined ratio of 97.8%, up 1.2 percentage points, primarily due to increased claims from natural disasters and higher accident rates from increased vehicle usage [3]. - Total investment income was RMB 20.807 billion, a decrease of 1.6% year-on-year, with an investment return rate of 3.5%, down 0.3 percentage points, mainly affected by fluctuations in the capital market [3]. - The report anticipates improvements in underwriting profitability and investment returns, leading to enhanced shareholder returns, and adjusts the EPS forecasts for 2024-2026 to RMB 1.35, RMB 1.50, and RMB 1.67 respectively [3]. Summary by Sections Financial Performance - The company achieved insurance service revenue of RMB 457.203 billion in 2023, an 8% increase year-on-year. The net profit for 2023 was RMB 24.566 billion, reflecting a 16% decrease from the previous year [7]. - The combined ratio for the auto insurance segment was 96.9%, up 2.4 percentage points year-on-year, driven by increased claims due to higher accident rates and natural disasters [9]. Underwriting and Premiums - The auto insurance premium income grew by 5.3% year-on-year, while non-auto insurance premiums increased by 7.4%, with health and agricultural insurance being the main growth drivers [3][8]. - The underwriting performance varied across non-auto segments, with agricultural insurance facing increased claims but maintaining a combined ratio of 95.8% due to effective cost control [3]. Investment and Returns - The investment asset scale reached RMB 596.846 billion, with a net investment return rate of 3.5% [8]. - The report highlights a focus on optimizing the business structure to improve profitability, particularly in the liability and corporate property insurance segments, which still face losses [3][9].
2023年年报业绩点评：承保盈利稳健，股东回报超预期