2024-04-29 11:30Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of RMB 39.02, reflecting a low valuation with a 2024E PEV of 0.6x [12][15]. Core Insights - The company has achieved its highest growth in New Business Value (NBV) in recent years, with a year-on-year increase of 26.3% in Q1 2024, driven by a significant improvement in the structure of new policies [1][21]. - The total investment assets reached RMB 59,319 billion, marking a 4.8% increase from the beginning of the year, although the net investment yield slightly declined to 2.82% [2][18]. - The agency force remains stable in size but has improved in quality, with a 17.7% year-on-year increase in first-year premium per agent [14][21]. Summary by Sections Life Insurance - New policy premium structure has significantly improved, with first-year premiums at RMB 748 billion, up 4.7% year-on-year, and ten-year and above premiums at RMB 252 billion, up 25.4% [1]. - The NBV margin is expected to show significant improvement due to the growth in mid-to-long-term premium business and cost reduction efforts [1]. Investment - Investment assets have grown steadily, reaching RMB 59,319 billion, with total investment income at RMB 647 billion, a 7.2% increase year-on-year [2]. - The net investment income was RMB 427 billion, showing a slight decline of 0.1% year-on-year, with a simple annualized net investment yield of 2.82% [2][18]. Financial Performance - The company's net profit attributable to shareholders for Q1 2024 was RMB 20.6 billion, down 9.3% year-on-year, while equity at the end of the quarter was RMB 480.4 billion, up 46.6% [11][13]. - The report forecasts a gradual recovery in net profit growth, with an expected increase of 8.2% in 2024 and 13.5% in 2025 [16].