Investment Rating - The investment rating for the company is "Buy" [8][6]. Core Views - The company reported a steady growth in New Business Value (NBV) of 20% year-on-year for 1H25, despite a decline in pre-tax profit by 11.5% [2][6]. - The interim dividend increased by 19% to RMB 0.24, outpacing profit growth [1]. - The annualized net investment return decreased to 2.78%, while the total investment return fell to 3.29% [4]. Summary by Sections Financial Performance - The earnings per share (EPS) for 1H25 was RMB 1.45, a 6.9% increase year-on-year, primarily due to a significant reduction in income tax expenses [1]. - The NBV for 1H25 showed a 20% increase on a comparable basis, indicating robust growth compared to peers [2]. - The company’s net assets increased by 2.8% year-to-date, and the embedded value (EV) rose by 5.5% [5]. Business Segments - The individual insurance channel saw a 22% decline in new premiums, influenced by regulatory changes, but the NBV from this channel grew by 9.5% [2]. - The bancassurance channel experienced a remarkable 111% increase in new premiums, contributing significantly to the overall NBV growth [2]. Investment Strategy - The asset allocation shifted with a decrease in fixed-income assets and an increase in equity investments, reflecting a strategic response to market conditions [4]. - The total investment assets grew by 7.8% since the beginning of the year [4]. Future Outlook - The company anticipates a 17.9% growth in NBV for 2025, supported by a recovery in the bancassurance channel following regulatory changes [2][6]. - The projected EPS for 2025 is adjusted to RMB 3.20, with subsequent years also showing growth [6][12]. Valuation - The target price for the A/H shares has been raised to RMB 49 and HKD 26, respectively, based on a discounted cash flow (DCF) valuation method [6][12].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the expansion of bancassurance is driving rapid growth in New Business Value (NBV), with a significant increase in stock investments [1] - The company's net profit for the first half of 2025 is reported at 68 billion yuan, a year-on-year decrease of 8.8%, with a notable increase in NBV by 39.8% on a comparable basis [7][1] - The report indicates a slight adjustment in the forecast for net profit for 2025-2027, now projected at 1297 billion yuan, 1427 billion yuan, and 1638 billion yuan respectively [1] Financial Performance Summary - Total revenue for 2023 is projected at 913,789 million yuan, with a year-on-year growth of 3.8% [1] - The net profit attributable to shareholders for 2023 is expected to be 85,665 million yuan, reflecting a year-on-year decline of 22.8% [1] - The report provides a detailed breakdown of the company's earnings per share (EPS) and price-to-earnings (P/E) ratios, with EPS for 2025 estimated at 7.12 yuan and P/E at 8.50 [1][27] Business Segment Analysis - In the life insurance segment, the NBV margin is reported at 26.1%, with a year-on-year increase of 8.8 percentage points [1] - The property and casualty insurance segment shows a premium income growth of 7.1%, outperforming the industry average of 5.1% [1] - The investment strategy has shifted towards reducing bond and fund allocations while increasing stock investments, resulting in a comprehensive investment return of 3.1%, up by 0.3 percentage points year-on-year [1][26] Market Data - The closing price of the stock is reported at 60.52 yuan, with a market capitalization of approximately 1,102,083.40 million yuan [5] - The company has a price-to-book (P/B) ratio of 1.17 and a price-to-earnings (P/E) ratio of 12.87 [5][24]

Core Viewpoint - The company maintains a "Buy" rating with a target price of HKD 89.80 per share, reflecting a 1.7x P/EV for 2025, supported by stable growth in NBV and EV, and an expected improvement in shareholder returns [1] Group 1: Financial Performance - In H1 2025, the company achieved a net profit attributable to shareholders of USD 2.534 billion, a decrease of 24% year-on-year; however, the after-tax operating profit was USD 3.609 billion, representing a 6% increase [1] - The embedded value (EV) stood at USD 70.853 billion, up 2.6% from the end of the previous year, with a 4.2% contribution from new business value growth and a 4.2% contribution from stable expected returns [1] - The interim dividend for 2025 was set at HKD 0.49 per share, reflecting a 10% year-on-year increase [1] Group 2: New Business Value (NBV) Growth - The company reported a 14% year-on-year increase in NBV for H1 2025, with annualized new premiums rising by 8% and the value ratio improving by 3.4 percentage points to 57.7% [2] - In Hong Kong, NBV grew by 24%, driven by a 35% increase in agent channel NBV due to a 9% growth in active agents and a 30% increase in productivity [2] - In mainland China, NBV decreased by 4%, but if excluding the impact of economic assumptions, it would have increased by 10% [2] Group 3: Shareholder Returns - The operating profit after tax (OPAT) grew steadily, with a 6% increase in H1 2025, primarily due to stable CSM release and positive contributions from operational differences and risk adjustments [3] - The diluted after-tax operating profit per share was USD 0.3391, a 12% increase year-on-year, with the return on equity for shareholders rising by 0.9 percentage points to 16.2% [3] - The company completed a USD 1.6 billion share buyback on July 14, 2025, and returned USD 3.71 billion to shareholders through dividends and buybacks in H1 2025, with free surplus at USD 9.898 billion [3]

Investment Rating - The report maintains a positive outlook on the insurance industry, highlighting strong profit growth driven by investment performance and manageable impacts from economic assumption adjustments [3][4]. Core Insights - The insurance industry is expected to see a significant increase in net profit, with A-share listed insurance companies projected to achieve a total net profit of CNY 347.6 billion in 2024, representing a year-on-year increase of 77.7% [3][5]. - Investment performance is the primary driver of profit growth, contributing 94.5% to the pre-tax profit increase, while total investment income is expected to grow by 110% year-on-year [3][10]. - Economic assumption adjustments have a controllable impact on core indicators, with the investment return rate lowered from 4.5% to 4.0%, and the net value of new business (NBV) expected to decline between 5.4% and 36.2% [3][20][23]. Summary by Sections 1. Investment-Driven Profit Growth - The capital market recovery has significantly boosted the investment performance of insurance companies, leading to a substantial increase in net profit [5][10]. - The total investment income for A-share listed insurance companies is projected to reach CNY 781.1 billion, with a year-on-year growth of 110% [13][10]. 2. Economic Assumption Adjustments - The report indicates a cautious adjustment of economic assumptions, with the investment return rate reduced by 50 basis points to 4.0% [20][22]. - The adjustments are expected to have a limited negative impact on core indicators, with most insurance companies maintaining positive growth in embedded value (EV) [27][30]. 3. Liability Side: NBVM Driving NBV Growth - The NBV growth for listed insurance companies is projected to range from 17.8% to 127% year-on-year, driven by improvements in the new business value margin (NBVM) [3][42]. - The report highlights a mixed performance in new business growth across different companies, influenced by the "reporting and operation integration" policy [47][48]. 4. Asset Side: Strong Investment Performance - The report notes a significant increase in investment assets, with a year-on-year growth of 20.8% to CNY 18.15 trillion by the end of 2024 [3][10]. - The allocation towards bonds and equities has increased, reflecting a positive investment strategy among listed insurance companies [3][10]. 5. Investment Analysis Recommendations - The report recommends continued investment in companies such as New China Life, China Pacific Insurance, China Ping An, AIA, and China Life, based on their strong performance and growth potential [3][10].

Core Viewpoint - The company reported a significant increase in net profit and dividends per share (DPS) for 2024, exceeding expectations, indicating strong financial performance and investor returns [1][2]. Financial Performance - The company achieved a net profit of 26.2 billion yuan in 2024, representing a year-over-year increase of 201.1%, with a fourth-quarter profit of 5.55 billion yuan, showing substantial improvement compared to a loss of 0.83 billion yuan in Q4 2023 [1][2]. - The annual DPS reached 2.53 yuan, up 197.6% year-over-year, with a dividend payout ratio of 30.1%, maintaining a level similar to 2023 [1][2]. New Business Value (NBV) and Premiums - The company reported an NBV of 6.253 billion yuan, reflecting a year-over-year growth of 106.8%, with a first-year premium growth rate of 14.6% [3]. - Long-term first-year premiums reached 27.22 billion yuan, up 15.6% year-over-year, accounting for 70.1% of total premiums [3]. Investment Returns - The company achieved net, total, and comprehensive investment returns of 3.2%, 5.8%, and 8.5%, respectively, with total investment income significantly boosted by fair value changes amounting to 37.5 billion yuan [4]. - The proportion of OCI assets increased to 30.7%, with a notable rise in high-dividend OCI equity investments [4]. Future Outlook - The company is expected to benefit from improved agent quality, product structure optimization, and a higher proportion of equity investments, leading to greater investment return elasticity [5]. - Projected net profits for 2025-2027 are 27.9 billion yuan, 29.3 billion yuan, and 30.8 billion yuan, with corresponding growth rates of 6.5%, 5.1%, and 4.9% [5].

Investment Rating - The report maintains a "Buy" rating for China Life Insurance [1] Core Views - The company's performance in 2024 met expectations, with a significant year-on-year increase in net profit of 108.9% to CNY 106.935 billion, benefiting from a rebound in the equity market [4] - The company's embedded value (EV) grew by 11.2% year-on-year to CNY 1.4 trillion, driven by substantial positive contributions from investment returns [5] - The report anticipates further growth in dividends, with a 51.2% increase in earnings per share to CNY 0.65, resulting in a dividend payout ratio of 17% [4] Financial Performance - In 2024, the company achieved total revenue of CNY 528.567 billion, a year-on-year growth of 30.5% [8] - The net profit for 2024 is projected at CNY 106.935 billion, with a forecasted growth of 5.01% in 2025 [8] - The company's total investment assets reached CNY 6.61 trillion, reflecting a year-on-year increase of 22.1% [6] Investment Analysis - The report highlights a strong investment performance, with total and net investment returns of 5.50% and 3.47%, respectively [6] - The report projects net profits for 2025-2027 at CNY 112.297 billion, CNY 127.893 billion, and CNY 152.342 billion, respectively [6] - The company's price-to-embedded value (P/EV) ratio for 2025 is estimated at 0.70x, indicating potential for further appreciation [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Insights - The company reported a net profit of 126.61 billion yuan for 2024, representing a year-on-year increase of 47.8%. The net value of new business (NBV) reached 28.53 billion yuan, up 25.6% year-on-year. The company has adjusted its actuarial assumptions, lowering the investment return rate from 4.5% to 4.0% and the risk discount rate from 9.5% to 8.5%/7.5% [4][13][14] - The company continues to emphasize shareholder returns, proposing a dividend of 2.55 yuan per share for 2024, which is a 5% increase year-on-year [15] Summary by Sections Financial Performance - For 2024, the company achieved a net profit of 1266.07 billion yuan, with a breakdown of profits from various segments: life and health insurance (930 billion yuan, +28%), property insurance (150 billion yuan, +68%), banking (258 billion yuan, -4%), asset management (-119 billion yuan, loss narrowed), and financial empowerment (129 billion yuan, +528%) [14] - The operating profit for 2024 was 1218.62 billion yuan, reflecting a 9.1% increase year-on-year [14] New Business Value (NBV) - The NBV for 2024 was 285.34 billion yuan, with a year-on-year growth of 25.6%. The first-year premium used for calculating NBV was 1540.26 billion yuan, down 7.1% year-on-year [15] - The NBV margin improved to 22.7%, an increase of 3.5 percentage points year-on-year [15] Actuarial Assumptions and EV Growth - The company's actuarial assumptions adjustments led to a decrease in the expected value (EV) growth, with the EV for life and health insurance at 8350.93 billion yuan by the end of 2024, down 13.1% due to these adjustments [15] - The company’s EV based on 2023 assumptions was 9606.08 billion yuan, reflecting a 15.6% increase from the beginning of the year [15] Dividend Policy - The proposed dividend of 2.55 yuan per share for 2024 indicates a commitment to shareholder returns, with a payout ratio of 37.9% of the operating profit [15] Future Projections - The company forecasts insurance business revenues of 575.68 billion yuan, 600.48 billion yuan, and 628.27 billion yuan for 2025, 2026, and 2027 respectively, with corresponding growth rates of 4.4%, 4.3%, and 4.6% [17] - Projected net profits for the same years are 141.39 billion yuan, 164.21 billion yuan, and 193.67 billion yuan, with growth rates of 11.7%, 16.1%, and 17.9% respectively [17]

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of HKD 81.10 based on a reasonable valuation of 1.5X PEV [3]. Core Views - The company has demonstrated resilience in new business value (NBV) and is expected to return to double-digit growth in 2023-2024, with a projected NBV margin stabilization [1][2]. - The operational profit has shown steady growth, with a 3.5% year-on-year increase in tax-adjusted operational profit for the first half of 2024 [1]. - The company's embedded value (EV) growth is credible and reflects timely adjustments to investment return assumptions and discount rates [1][29]. - The capital management policy has been optimized, enhancing predictability and stability in shareholder returns, with a dividend payout ratio expected to be over 35% [1][34]. Summary by Sections Company Overview - The company operates in 18 markets across the Asia-Pacific region, with a strong historical presence and a focus on sustainable growth [16]. - It has a diversified ownership structure, with major shareholders being institutional investors, which supports management's decision-making flexibility [19][20]. Financial Performance - The company has shown a compound annual growth rate (CAGR) of 11.6% in operational profit from 2010 to 2022, despite recent challenges [22]. - The insurance revenue is projected to grow from USD 163.19 billion in 2022 to USD 208.10 billion by 2026, reflecting a year-on-year growth of 7.3% [6]. Core Advantages - The company benefits from superior corporate governance, a strong agent network, and a focus on high-potential markets in the Asia-Pacific region [2][41]. - It has a lower cost of liabilities and a more favorable interest margin dependency compared to peers, which enhances its competitive position [2]. Profitability Forecast - The NBV growth rates are expected to be 17%, 9%, and 10% for 2024-2026, with operational profit growth rates of 9% for both 2024 and 2025 [3]. - The embedded value (EV) growth is projected at 3%, 5%, and 7% for the same period, indicating a stable outlook [3]. Shareholder Returns - The company has committed to returning 75% of its annual free surplus to shareholders through dividends and share buybacks, with expected shareholder return rates of 7.4%, 6.5%, and 5.8% for 2024-2026 [34].