Investment Rating - The report maintains a "Recommended" rating for China Pacific Insurance (02328.HK) with a target price of HKD 13.51, compared to the current price of HKD 9.98 [1][2]. Core Insights - The company reported a 5.9% year-on-year increase in insurance service revenue for Q1 2024, reaching CNY 113.8 billion. The combined cost ratio (COR) rose by 2.2 percentage points to 97.9%, but remains better than peers. The net profit decreased by 38.3% year-on-year to CNY 5.9 billion, primarily due to investment performance [1][2]. - The company is expected to maintain steady growth in underwriting, supported by its leading position and a new business model integrating "insurance + risk reduction services + technology." The report anticipates a gradual improvement in return on equity (ROE) [2][3]. Financial Performance Summary - For Q1 2024, the company achieved insurance service revenue of CNY 113.8 billion, a year-on-year increase of 5.9%. The COR was 97.9%, which is better than major competitors [1][2]. - The investment performance was impacted by a high base from the previous year, with a total investment yield of 0.8% for Q1 2024. The net profit was affected by a significant decline in investment income, with total investment income decreasing by 36.4% year-on-year [2][3]. - The report projects the company's earnings per share (EPS) for 2024-2026 to be CNY 1.37, CNY 1.54, and CNY 1.70 respectively, with a price-to-book (PB) target of 1.1x for 2024 [2][3].
2024年一季报点评：COR好于同业，投资拖累净利润