Changjiang Securities·2024-05-08 01:02Investment Rating - The investment rating for the company is "Buy" and maintained [28]. Core Insights - The company reported a net profit of 20.64 billion yuan for Q1 2024, a year-on-year decrease of 9.3%. However, the new business value (NBV) increased by 26.3% year-on-year, indicating strong growth potential despite market volatility [4][27]. - The decline in profit is primarily attributed to market fluctuations, with total and net investment returns decreasing by 0.98 percentage points and 0.8 percentage points to 3.23% and 2.82%, respectively [4]. - The company's individual insurance team size has stabilized, with a slight decrease to 622,000 agents, down 1.9% from the beginning of the year, which is expected to outperform the industry [13][27]. Summary by Sections Financial Performance - The company achieved a net profit of 20.64 billion yuan in Q1 2024, down 9.3% year-on-year. The NBV saw a significant increase of 26.3% year-on-year, driven by improved value rates despite a 4.4% decline in new single premiums [4][27]. - The improvement in the payment structure is notable, with the proportion of new single premiums over ten years increasing by 5.6 percentage points to 33.7%, and the proportion of periodic new single premiums rising from 60.7% to 66.5% [4]. Market Position and Strategy - The company is positioned as a leading life insurance provider with a relatively controllable cost of liabilities, minimizing the risk of interest margin losses. The expected price-to-earnings value (PEV) is projected at 0.60 times, indicating significant upside potential if expectations improve [27]. - The company is actively reforming its marketing system and has launched the "Seed Plan" to explore new marketing models, which has already been initiated in provinces like Guangdong, Jiangsu, and Shenzhen [13][27].