Guolian Securities·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 40.00 CNY [4]. Core Views - The company achieved a Net Benefit Value (NBV) of 10.962 billion CNY, representing a year-on-year increase of 19.1%. However, the net profit attributable to shareholders decreased by 27.1% to 27.257 billion CNY due to a significant drop in investment income [1][2]. - The company's operational profit remained stable, with a slight decrease of 0.4% year-on-year, indicating resilience in its operational performance despite external pressures [1]. - The company’s investment income faced challenges, declining by 90.9% to 7.053 billion CNY, primarily due to accounting standard changes and market volatility [2]. Summary by Sections Financial Performance - The company reported total revenue of 323.945 billion CNY in 2023, a decrease of 2.5% compared to 2022. The net profit attributable to shareholders was 27.257 billion CNY, down 27.1% year-on-year [3]. - The embedded value (EV) at the end of 2023 was 529.493 billion CNY, reflecting a 1.9% increase from the beginning of the year [3]. Business Segments - The life insurance segment achieved an NBV of 10.962 billion CNY, with a year-on-year growth of 19.1%. The new business income was 82.876 billion CNY, up 2.4% year-on-year [1]. - The property insurance segment reported premium income of 188.342 billion CNY, an increase of 11.4% year-on-year, with a combined ratio (COR) of 97.7%, indicating strong underwriting profitability [2]. Future Outlook - The report forecasts net profits for 2024, 2025, and 2026 to be 31.127 billion CNY, 35.030 billion CNY, and 38.911 billion CNY, respectively, with expected growth rates of 14%, 12.5%, and 11.1% [2][3]. - The company is expected to benefit from a recovery in external markets, which may improve investment income moving forward [2].