HUAXI Securities·2024-06-12 10:02Investment Rating - The report assigns a "Buy" rating for the company [5]. Core Views - The company has a strong state-owned background with concentrated shareholding, ensuring stable dividends. The Ministry of Finance holds 60.84% of the shares, and the social security fund holds 12.68%, totaling 73.52% [2][15]. - The company demonstrates robust profitability with a high and stable dividend payout ratio, maintaining a cash dividend ratio above 30% from 2020 to 2023 [2][18]. - The company is a leader in the property insurance sector, with a market share exceeding one-third, and has consistently maintained a combined cost ratio below 100%, indicating strong underwriting profitability [3][24]. - The life insurance segment is undergoing a high-quality transformation, with significant growth potential in value [4][10]. Summary by Sections 1. Historical Overview and Shareholding Structure - The company is the first national insurance company in New China, established in 1949, and has evolved into a leading comprehensive insurance financial group [15]. - The shareholding structure is stable, with the Ministry of Finance as the controlling shareholder [16]. 2. Property Insurance: Leading Position and Profitability - The company leads the industry in premium scale and profitability, with a market share of 37.9% in the property insurance sector as of 2023 [3][24]. - The combined cost ratio has remained below 100% for 14 years, indicating consistent underwriting profits [3][25]. - The auto insurance segment is a core component, contributing significantly to overall profitability, with a market share of 32.2% in 2023 [28]. 3. Life Insurance: Transformation and Growth Potential - The life insurance segment is focusing on high-value products and has shown improvements in both scale and quality [4][10]. - The company is increasing the proportion of value-based products and enhancing its distribution channels [4][9]. 4. Investment Performance - The company has a stable growth in investment assets, with a significant portion in fixed-income assets [10][21]. - The investment return rates are among the highest in the industry, indicating a robust investment strategy [10][21]. 5. Profit Forecast and Investment Recommendations - The forecast for group revenue from 2024 to 2026 is projected to grow from 602.5 billion to 696.2 billion yuan, with corresponding net profit growth from 26.2 billion to 31.4 billion yuan [10][11]. - The report suggests a favorable investment outlook based on the stability of property insurance profits and the potential of life insurance transformation [10].