NCI(601336) 东吴证券·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][2] Core Insights - The company's net profit for 2023 was 8.712 billion yuan, a year-on-year decrease of 59.5%, primarily due to investment losses [2][7] - The implementation of the new financial instrument standard (IFRS9) has led to significant fluctuations in profit, with the investment spread turning from profit to a loss of 6.450 billion yuan [2][7] - The company's return on equity (ROE) for 2023 was 7.9%, down 14.5 percentage points year-on-year [2][7] - The company has adjusted its economic assumptions, lowering the long-term investment return rate to 4.5% and the risk discount rate to 9.0% [2][7] - The company reported a total premium income of 165.903 billion yuan in 2023, a year-on-year increase of 1.7% [2][7] Summary by Sections Profit Forecast and Valuation - The company’s net profit forecast for 2024-2026 is 10.921 billion, 12.458 billion, and 13.246 billion yuan respectively [1][8] - The price-to-embedded value (P/EV) for 2024 is projected at 0.34 times [2][5] Financial Performance - The insurance service income for 2023 was 48.045 billion yuan, down 15.5% year-on-year [2][7] - The investment yield for 2023 was 3.4%, down from 4.60% in 2022 [2][7] - The company’s total assets and liabilities ratio stands at 92.51% [1] Business Segments - The health insurance segment saw a 19.6% decline in service income, contributing to the overall drop in performance [2][7] - The company has been focusing on improving the quality of its sales force, with a 94.4% year-on-year increase in average productivity per agent [2][7]