Guotai Junan Securities·2024-04-28 06:02Investment Rating - The report maintains an "Accumulate" rating for China Life Insurance (601628) with a target price of 41.24, unchanged from the previous rating [12][24]. Core Views - The report highlights that the new business value (NBV) is growing rapidly, although investment returns are under pressure due to market volatility [24]. - The first quarter of 2024 saw a year-on-year decline in net profit attributable to shareholders of 9.3%, primarily due to investment pressures and the impact of new accounting standards [24]. - The company is focusing on improving the quality of its sales force while maintaining stable growth in team size [24]. Summary by Sections Financial Performance - In Q1 2024, new premium income was 112,444 million, down 4.4% year-on-year, while first-year premium income was 74,825 million, up 4.7% year-on-year [6]. - The net profit attributable to shareholders for 2023 was 46,181 million, with a forecast of 54,453 million for 2024 [14]. - The total investment income for 2023 was reported as -1,296 million, with a projected recovery to 24,237 million in 2024 [14]. Asset and Liability Indicators - The total investment assets reached 5,243,830 million, reflecting a 3.5% increase year-on-year [6]. - The comprehensive solvency adequacy ratio was 210.2%, down 37.4% year-on-year, while the core solvency adequacy ratio was 147.5%, down 28.9% year-on-year [6]. Business Growth and Strategy - The company is implementing a strategy to optimize its sales channels and improve cost efficiency, particularly in the bancassurance sector [24]. - The report notes a significant improvement in the value rate, driven by business structure optimization and a focus on enhancing the quality of the sales team [24]. Market Position - China Life Insurance is recognized as a leading player in the domestic life insurance industry, with a strong brand and market presence [25]. - The company is part of the Fortune Global 500 and is regarded as a pillar of the Chinese insurance market [25].