Changjiang Securities·2024-04-26 07:02Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Views - The main industry challenge remains asset-side factors, necessitating attention to long-term interest rates, equity markets, and the real estate sector. In a scenario of marginal improvement, the company has significant upside potential. In the medium to long term, the company continues to advance channel reforms, emphasizes supply-side innovation, and deepens its involvement in healthcare and comprehensive financial services. The expected advantages of its ecosystem will help the company build future product and pricing barriers. The current 2024 PEV valuation is 0.49 times, which is at the bottom range [2][6][7]. Financial Performance Summary - The company reported a net profit attributable to shareholders of 36.71 billion yuan, a year-on-year decrease of 4.3%. The new business value reached 12.89 billion yuan, with a comparable year-on-year growth of 20.7% [6]. - The decline in profit is primarily attributed to market volatility. The net investment yield decreased by 0.1 percentage points to 3.0%, likely due to the ongoing decline in interest rates and reduced returns from new fixed-income allocations. The total income from non-bank business, investment income, and fair value changes amounted to 56.71 billion yuan, a year-on-year decrease of 3.3% [6]. - The new business value growth is promising, with a new business value rate improvement being the main contributor to this growth. The new single premium decreased by 13.6% to 56.63 billion yuan, while the new business value rate (first-year premium) increased by 6.5 percentage points to 22.8% [6][7]. - The individual insurance capacity continues to improve, with the number of agents down 4% to 333,000 compared to the beginning of the year. However, productivity has significantly increased, with per capita new business value rising by 56.4% year-on-year [6][7]. - The company achieved a property and casualty insurance premium of 79.08 billion yuan, a year-on-year increase of 2.8%, with significant growth in accident and health insurance premiums [6][7]. Market Outlook - The focus in the short term is on asset-side issues, while the long-term outlook remains positive due to the company's ecological advantages. The company is expected to continue its channel reforms and supply-side innovations, which will support its future growth [2][7].