2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company [3][5] Core Views - The company's investment performance is under pressure, impacting profits, but overall performance meets expectations. In 2023, the company achieved a net profit attributable to shareholders of 27.257 billion yuan, a year-on-year decrease of 27.1% [3] - The company has adjusted its long-term insurance investment return rate and risk discount rate assumptions, which has affected its embedded value (EV) growth [3][4] - The company plans to distribute a dividend of 1.02 yuan per share, maintaining the same level as the previous year, resulting in a dividend yield of 4.5% for A shares and 7.6% for H shares as of April 10 [3] Financial Data and Profit Forecast - In 2023, the company reported total revenue of 323.945 billion yuan, with a projected revenue of 359.399 billion yuan for 2024, reflecting a year-on-year growth rate of 10.9% [7] - The net profit attributable to shareholders is expected to recover to 34.351 billion yuan in 2024, with a year-on-year growth of 26.0% [7] - The earnings per share (EPS) is projected to be 3.89 yuan for 2024, with a price-to-earnings (P/E) ratio of 5.9 [3][7] Business Performance - The company's new business value (NBV) for 2023 is reported at 120.39 billion yuan, representing a year-on-year increase of 30.8% [4] - The individual insurance channel shows robust performance, with NBV and new business growth rates of 8.8% and 14.2%, respectively [4] - The company’s underwriting profit improved significantly in Q4 2023, with a combined ratio of 93.8% [4] Investment Returns - The company's total investment yield for 2023 was 2.6%, with a net investment yield of 4.0% [5] - The asset allocation at year-end shows a significant portion in debt financial assets at 74.5% [5] Valuation Metrics - The latest closing price corresponds to a price-to-embedded value (PEV) of 0.39 for 2024, indicating potential undervaluation [5]