Investment Rating - The report maintains a "Buy" rating with a target price of HKD 13.35 per share, corresponding to a P/B of 1.2 times for 2024 [3][4]. Core Views - The company's net profit for Q1 2024 decreased by 38.3% year-on-year to CNY 5.871 billion, which is below market expectations. Both underwriting and investment are under pressure, with the combined cost ratio (COR) rising to 97.9%, an increase of 2.2 percentage points year-on-year [3][4]. - The report anticipates that the company will achieve stable premium growth through intrinsic development despite the challenges faced in underwriting and investment [3]. Summary by Sections Financial Performance - Q1 2024 net profit was CNY 5.871 billion, down 38.3% year-on-year, lower than market expectations. The underwriting profit has significantly declined due to adverse weather conditions and increased traffic, while investment income has also been affected by market volatility [3][7]. - The total investment return rate (not annualized) was 0.8%, while the comprehensive investment return rate (not annualized) remained stable at 1.49% [3]. Underwriting Performance - Q1 2024 auto insurance premium growth was 1.9%, below the industry growth rate of 2.6%. This is attributed to the relaxation of self-pricing mechanisms and strict adherence to the "reporting and execution" policy [3]. - The report projects that auto insurance will see intrinsic growth, with 31% of customers only holding mandatory insurance and 87% holding only mandatory insurance plus CNY 1 million in commercial third-party liability insurance, potentially leading to an annual premium growth of 0.5% to 1.0% [3]. Non-Auto Insurance - Q1 2024 non-auto insurance premium income grew by 5.0%, primarily driven by corporate property insurance, cargo insurance, and health insurance, which contributed 11.3%, 9.4%, and 6.2% respectively [3]. - The report highlights that the growth in agricultural insurance has slowed to 3.2% year-on-year due to delays in selection processes in some regions [3]. Future Outlook - The company aims to maintain its underwriting profit target for the year, with a target COR of 97% for auto insurance and 100% for non-auto insurance [3]. - The report identifies catalysts for future growth, including effective claims control mechanisms [3].
中国财险2024年一季报业绩点评：盈利低于预期，多措并举预计全年业绩稳健