CHINA TAIPING(00966) Haitong Securities·2024-03-27 16:00Investment Rating - The report maintains an "Outperform" rating for the company [5][19]. Core Views - The company achieved a significant increase in net profit, with a year-on-year growth of 44.1%, reaching HKD 6.19 billion [2][6]. - The report highlights the strong performance of the life insurance segment, particularly in the bancassurance channel, which is expected to be a new growth driver [2][12]. - The investment structure has been optimized, with an increased allocation to bonds, contributing to a stable growth in investment assets [2][12]. Financial Performance Summary - Net Profit: The company's net profit attributable to shareholders was HKD 6.19 billion, up 44.1% year-on-year [2][6]. - Net Asset Value: The net asset value decreased by 5.9% from the beginning of the year, totaling HKD 79 billion [2][10]. - Return on Equity (ROE): The ROE improved to 8.5%, an increase of 1.2 percentage points year-on-year [2][10]. - Embedded Value (EV): The group's EV at the end of 2023 was HKD 203.1 billion, reflecting a year-on-year increase of 2.5% [2][6]. - New Business Value (NBV): The NBV for the life insurance segment was HKD 7.51 billion, with a year-on-year growth of 0.7% [2][11]. Segment Performance Summary - Life Insurance: The new individual insurance premium increased by 24.3% year-on-year, with a significant rise in bancassurance premiums [2][12]. - Property and Casualty Insurance: All segments maintained underwriting profitability, with a comprehensive cost ratio of 98.4%, up 1.2 percentage points year-on-year [2][12]. - Investment Performance: The total investment income rose by 138.8% year-on-year, reaching HKD 33.6 billion, driven by better performance in high-dividend stocks and a decrease in domestic interest rates [2][12]. Future Outlook - The report anticipates that the bancassurance channel will become a key value driver for the company in 2024, with expectations of a significant increase in NBV [2][12]. - The company is expected to continue its focus on high-quality development and structural adjustments to enhance profitability [2][12].