CHINA TAIPING(HK:00966)2024-06-04 07:01Investment Rating - The report maintains a "Buy" rating for China Taiping Insurance (966 HK) with a target price raised to HKD 10.60, indicating a potential upside of 25.4% from the current price of HKD 8.45 [1][2][10]. Core Views - The report anticipates a strong recovery in both the asset and liability sides of the company in 2024, with a projected 17% year-on-year growth in profit [2][4]. - New business value is expected to grow by over 10% year-on-year in 2024, driven by factors such as lower expense ratios from the bancassurance channel and product structure optimization [1][2]. - The solvency ratio of Taiping Life is robust, with a core solvency ratio of 142.79% as of Q1 2024, indicating a strong capital position compared to peers [2][4]. Financial Performance Summary - Revenue is projected to increase from HKD 141,055 million in 2023 to HKD 149,350 million in 2024, reflecting a year-on-year growth of 5.9% [4][11]. - Net profit is expected to rise from HKD 6,190 million in 2023 to HKD 7,247 million in 2024, marking a 17.1% increase [4][11]. - The report highlights a significant increase in investment income, with total investment income forecasted to grow from HKD 33,566 million in 2023 to HKD 38,887 million in 2024 [6][11]. Business Metrics and Projections - The new business value is projected to reach HKD 8,457 million in 2024, with a year-on-year growth rate of 12.6% [5][11]. - The report notes an increase in the investment return rate, with net investment return expected to be 3.46% in 2024 [5][11]. - The company's total assets are projected to grow from HKD 1,509,497 million in 2023 to HKD 1,656,989 million in 2024 [7][11].