Investment Rating - The report maintains a "BUY" rating for PICC P&C, with a target price of HK$15.80, implying a 16.5% upside from the current price of HK$13.96 [1][3]. Core Insights - PICC P&C is expected to report a strong net profit surge of 80%-100% YoY for 1Q25, reaching RMB10.6 billion to RMB11.7 billion, which represents 33%-37% of last year's total net profit [1]. - The improvement in the combined ratio (CoR) is attributed to reduced catastrophic claims and optimized asset allocation, with an estimated CoR of less than 95% for 1Q25 [1][7]. - The company is adjusting its auto and non-auto CoR forecasts to 95.9% and 99.0% respectively for FY25E, reflecting stringent expense controls and an improved underwriting structure [1][8]. Financial Performance - For FY25E, net profit is projected at RMB36.05 billion, with an EPS of RMB1.62, and a dividend yield of 5.1% [2][19]. - The company's return on equity (ROE) is expected to be 13.4% for FY25E, with a combined ratio of 97.1% [19][8]. - The total investment assets are forecasted to grow by 12.6% YoY, reaching RMB676.51 billion in FY24 [9]. Investment Strategy - The insurer is expected to increase its equity allocation to high-yield stocks under FVOCI, building on a 40% growth in FY24 [1][7]. - The report anticipates that the insurer's investment income in 1Q25 will benefit from equity gains and a rebound in bond yields, with China's 10-year government bond yield rising by 14.4bps to 1.82% [7][1]. Share Performance - The stock has shown a 1-month performance of 4.5% and a 3-month performance of 15.3% [5]. - The market capitalization of PICC P&C is approximately HK$301.6 billion, with an average turnover of HK$514.7 million over the past three months [3].

Investment Rating - The report maintains a "BUY" rating for the company, indicating a potential return of over 15% over the next 12 months [14]. Core Insights - The company reported a strong performance in Life OPAT, with a year-on-year increase of 6.1% to RMB 27.6 billion, surpassing forecasts. Group OPAT rose 2.5% YoY to RMB 34.4 billion, and net profit increased significantly by 64.9% YoY to RMB 45.0 billion, exceeding profit alerts by 55%-70% [1]. - The company achieved a notable 57.7% increase in NBV on a like-for-like basis, despite revising down long-term investment return assumptions by 50 basis points to 4.0% [1][9]. - The report highlights the insurer's effective asset/liability management and strong fundamentals, positioning it favorably against peers [1]. Financial Performance - For FY24, net profit is projected at RMB 46.4 billion, with EPS expected to be RMB 4.67. The consensus EPS for FY25 is RMB 4.29, indicating a slight downward revision from previous estimates [2][9]. - The company's P/B ratio is expected to decline from 0.8 in FY24 to 0.7 in FY25, reflecting a more attractive valuation [2][12]. - The combined ratio for P&C insurance is projected to be 98.6% for FY24, indicating a slight deterioration compared to the previous year [12]. Valuation Metrics - The target price for the company is set at HK$34.00, representing a 37.1% upside from the current price of HK$24.80 [2][10]. - The stock is trading at 0.54x FY25E P/EV and 1.05x P/B, suggesting it is undervalued relative to its embedded value [10][12]. - The report notes a significant increase in total investment income, which soared 131% YoY to RMB 120.4 billion, driven by higher dividends and fair value gains [8]. Share Performance - The company's market capitalization is approximately HK$238.6 billion, with a 52-week high of HK$33.15 and a low of HK$14.14 [3]. - Over the past month, the stock has appreciated by 7.8%, outperforming the market [5].