Investment Rating - The investment rating for China Pacific Insurance is "Buy" with a target price of HK$40.50, implying an expected share price return of 17.7% and an expected total return of 21.3% [5][8]. Core Insights - The growth for 2026 is anticipated to be driven by both agency and banca channels, with the banca channel expected to achieve 20-30% year-on-year growth due to increased collaboration with state-owned banks [2]. - The company plans to shift its product strategy towards protection products in 2026, anticipating a compound annual growth rate (CAGR) of 8-15% in the health insurance space over the next 3-5 years [4]. - The dividend per share (DPS) growth is linked to operating profit after tax (OPAT) growth, with management expecting single-digit OPAT growth in the coming three years [5][7]. Summary by Sections Growth Channels - Management expects single-digit growth in regular first-year premiums (FYP) from the agency channel, while the banca channel is projected to grow by 20-30% year-on-year [2]. - The agency channel's productivity has seen a double-digit uplift, contributing over 90% to the agency channel's new business value (NBV) [2]. Investment Portfolio - The sector allocation among high dividend stocks is well diversified, with 7-9% in banks, transportation, urban public utilities, telecom, metals, and oil and gas sectors, and 5-6% in food and beverage and utilities sectors [3]. - H shares account for approximately 20-30% of total equity investments, representing a low single-digit percentage of the total investment portfolio [3]. Product Strategy - The shift towards protection products is driven by the lack of anticipated pricing rate cuts and regulatory guidance on health insurance development [4]. - There is potential for growth in critical illness (CI) product sales by increasing the sum insured, as these products are long-term plans [4]. Valuation - The target price of HK$40.50 is derived using a sum-of-the-parts (SOTP) approach, projecting a first-stage growth of 13% over three years, followed by 5% and a terminal growth of 2% [8].