Haitong Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The report highlights that China Pacific Insurance (CPIC) reported a net profit attributable to shareholders of 27.3 billion yuan for the year, a year-on-year decrease of 27.1%. The fourth quarter net profit was 4.11 billion yuan, down 39.3% year-on-year. The operating profit attributable to shareholders was 35.5 billion yuan, a slight decrease of 0.4% year-on-year [6]. - The report indicates that the company's net asset value (NAV) reached 249.6 billion yuan, an increase of 27.0% from the beginning of the year and up 4.6% from the end of the third quarter. The return on equity (ROE) was 11.4%, down 7.7 percentage points year-on-year [6]. - The report also notes that the company maintained a stable dividend of 1.02 yuan per share, with a dividend payout ratio of 36.0% based on net profit, a decrease of 3.9 percentage points year-on-year [6]. - The report projects that the company's embedded value (EV) and new business value (NBV) will be impacted by adjustments in long-term investment return assumptions and risk discount rates [6]. Summary by Relevant Sections Financial Performance - The total revenue for 2023 is projected to be 323.9 billion yuan, a decrease of 2.47% year-on-year, with a net profit of 27.3 billion yuan, down 27.08% year-on-year. The earnings per share (EPS) is expected to be 2.83 yuan [7]. - The embedded value (EV) for 2023 is estimated at 55.04 yuan, with a projected increase to 60.59 yuan in 2024 [7]. Business Segments - In the life insurance segment, the new business value (NBV) reached 11 billion yuan, a year-on-year increase of 19.1%. The individual insurance and bank insurance NBV grew by 8.8% and 115.6% respectively [6]. - The property insurance segment reported a premium income of 188.3 billion yuan, an increase of 11.4% year-on-year, with a combined ratio of 97.7%, which is better than the industry average [6]. Investment Strategy - The company has significantly increased its allocation to bonds, with total investment assets reaching 2.25 trillion yuan, a 15.0% increase from the beginning of the year. The net investment income for the year was 77.7 billion yuan, up 2.3% year-on-year [6]. - The report emphasizes that the valuation remains low, with a projected price-to-embedded value (P/EV) of 0.38x for 2024, and a reasonable value range of 33.33 to 36.36 yuan per share [6].