Huachuang Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommended" rating for China Life Insurance (601628) with a target price of 38.41 CNY, compared to the current price of 28.50 CNY [2][29]. Core Views - The report highlights that China Life's net profit was impacted by investment performance, while both individual insurance volume and quality improved. The company achieved a premium income of 641.4 billion CNY in 2023, a year-on-year increase of 4.3% [2][29]. - New business value reached 36.9 billion CNY, up 11.9% year-on-year, and the embedded value reached 1.2606 trillion CNY, an increase of 5.6% year-on-year [2][29]. - The report notes that the company’s net profit attributable to shareholders was 46.2 billion CNY under the new standard, down 30.7% year-on-year, while the total investment return rates were 3.77%, 2.68%, and 3.23%, reflecting a decline in investment performance [2][29]. Summary by Sections Premium Income and New Business Value - In 2023, China Life achieved total premium income of 641.4 billion CNY, with new business value at 36.9 billion CNY, reflecting a year-on-year growth of 4.3% and 11.9% respectively. The embedded value also increased to 1.2606 trillion CNY, up 5.6% year-on-year [2][29]. Individual Insurance Performance - The individual insurance segment reported a new business value of 34.6 billion CNY, a year-on-year increase of 10.4%. The total premium income from this segment was 501.6 billion CNY, up 1.9% year-on-year, with new premium income at 110.4 billion CNY, increasing by 10.8% [2][29]. Investment Performance - As of the end of 2023, the company’s investment assets reached 5.6734 trillion CNY, a year-on-year increase of 12.0%. The report indicates that the investment return rates were affected by market volatility, with net, total, and comprehensive investment returns at 3.77%, 2.68%, and 3.23% respectively, showing a decline compared to the previous year [2][29]. Future Outlook - The report anticipates that the company’s leading position in agent reform will continue to provide growth momentum. The EPS forecasts for 2024-2026 have been adjusted to 0.97, 1.20, and 1.36 CNY respectively, with a downward adjustment of the 2024 PEV target to 0.8x [2][29].