Investment Rating - The investment rating for the company is "Buy" (maintained) with a current price of HKD 10.32 [1] Core Views - The company has shown improvement in non-auto business profitability and a steady increase in dividend levels [1] - In 2023, the company achieved a total insurance premium income of CNY 515.81 billion, a year-on-year increase of 6.3%, while the net profit attributable to shareholders decreased by 15.7% to CNY 24.59 billion [7][8] - The company maintains a strong market position with a market share of 32.5% in the property insurance industry [8] Summary by Sections Financial Performance - The company reported insurance service income of CNY 457.2 billion in 2023, up 7.7% year-on-year, with a quarterly breakdown showing a slowdown in growth in Q4 [8] - The comprehensive cost ratio (COR) for the company increased to 97.8%, up 1.2 percentage points year-on-year, with the auto insurance COR at 96.9% and non-auto insurance COR at 99.1% [9] - Total investment income decreased by 1.6% to CNY 20.81 billion, with an investment return rate of 3.5% [8] Business Structure - The company’s non-auto insurance service income reached CNY 175.09 billion, a year-on-year increase of 11.9%, with a 1.4 percentage point increase in its share of total income [8] - The auto insurance segment saw a slight increase in premium income, with household car premiums accounting for 73.2% of total auto insurance [8] Future Outlook - The company is expected to maintain its leading COR in the industry and is projected to achieve net profits of CNY 29.1 billion, CNY 32.3 billion, and CNY 35.9 billion for 2024, 2025, and 2026 respectively [8][10] - The price-to-book (PB) ratios for 2024, 2025, and 2026 are projected to be 0.86, 0.82, and 0.77 respectively [10]
2023年年报点评：非车业务盈利改善，分红水平稳中有升