EBSCN·2024-04-28 01:32Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Life Insurance, with current prices at 29.55 RMB and 10.30 HKD respectively [11]. Core Insights - In Q1 2024, China Life Insurance reported operating revenue of 1209.7 billion RMB, a year-on-year increase of 14.4%, while net profit attributable to shareholders was 206.4 billion RMB, down 9.3% year-on-year [12]. - The new business value (NBV) grew by 26.3% year-on-year, marking the highest growth rate in recent years, driven by improvements in the business structure and sales efficiency [13]. - The company is focusing on optimizing its business structure and enhancing sales capabilities through marketing reforms and new business models, which are expected to further improve sales momentum [14]. Financial Performance Summary - The annualized net investment return rate was 2.8%, and the total investment return rate was 3.2% in Q1 2024, with net investment income of 426.8 billion RMB, a slight decrease of 0.1% year-on-year [2]. - The company’s operating revenue is projected to grow from 826,055 million RMB in 2022 to 962,333 million RMB by 2026, with a compound annual growth rate (CAGR) of approximately 5.42% [5]. - Net profit attributable to shareholders is expected to recover from 21,110 million RMB in 2023 to 35,361 million RMB by 2026, reflecting a significant growth trajectory [5]. Business Structure and Strategy - The sales team has stabilized in size, with a total of 679,000 sales personnel as of Q1 2024, although this represents a 6.0% year-on-year decrease [12]. - The company is implementing a new marketing model, with pilot programs like the "Seed Plan" launched in several provinces, aimed at cultivating new growth drivers [12]. - The focus on health and elderly care ecosystems is part of the company's strategy to enhance its service offerings and market position [14].