Investment Rating - The investment rating for the company is "Buy" with a target price of 13.00 HKD, maintaining the current rating [6][4]. Core Insights - The company reported a premium income of 38.626 billion CNY in May 2024, showing a year-on-year increase of 4.4%, with both auto and non-auto insurance segments improving [2]. - The auto insurance premium income reached 22.853 billion CNY in May, also up by 4.4% year-on-year, driven by improvements in average premiums and expected growth in new car sales due to trade-in policies [2]. - Non-auto insurance premiums increased by 4.3% year-on-year to 15.773 billion CNY, primarily supported by growth in liability and personal health insurance [3]. Summary by Sections Premium Income - In May 2024, the company achieved a total premium income of 38.626 billion CNY, with auto insurance contributing 22.853 billion CNY and non-auto insurance contributing 15.773 billion CNY, reflecting year-on-year growth of 4.4% and 4.3% respectively [2][3]. Auto Insurance - The auto insurance segment's premium growth improved from 3.5% in April to 4.4% in May, attributed to better average premiums and anticipated growth in new car sales [2]. - The company expects the auto insurance combined ratio (COR) to improve to below 97% in 2024, supported by a favorable claims environment and regulatory guidance [2]. Non-Auto Insurance - The non-auto insurance segment saw a significant increase in liability insurance premiums by 17.1% year-on-year, while personal health insurance premiums grew by 5.5% [3]. - The company anticipates a modest single-digit growth in non-auto insurance for the year, driven by economic recovery and supportive policies [3]. Financial Forecasts - The company projects net profits of 28.244 billion CNY, 31.365 billion CNY, and 33.301 billion CNY for 2024, 2025, and 2026 respectively, with growth rates of 14.9%, 11%, and 6% [4]. - The return on equity (ROE) is expected to exceed 12% in 2024, reflecting the company's focus on high-quality development and improved investment income [4].
中国财险：车险及非车险增速均环比改善