China Life(601628) 国信证券·2024-10-31 02:42Investment Rating - The report maintains an "Outperform" rating for China Life Insurance (601628 SH) [1][3] Core Views - China Life Insurance achieved a record high net profit attributable to parent company of RMB 145 2 billion in the first three quarters, up 173 9% YoY [1] - The company's operating revenue reached RMB 4271 8 billion, a significant increase of 54 8% YoY [1] - Insurance service income under the new accounting standards grew 15 7% YoY to RMB 1578 5 billion, ranking first among listed insurers [1] - The company's product structure continues to optimize, with long-term insurance accounting for an increasing proportion [1] - The individual insurance channel has stabilized with 641 thousand agents, and the monthly per capita first-year regular premium increased by 17 7% YoY [1] - The company's investment income reached RMB 2614 2 billion, up 152 4% YoY, with a total investment yield of 5 38%, ranking first among listed insurers [1] Financial Performance - Total premium income reached RMB 6082 5 billion, up 5 1% YoY [1] - New business value increased by 25 1% YoY, with first-year regular premiums for 10 years and above accounting for 46 4% of total first-year regular premiums, up 4 3 percentage points YoY [1] - The company's OCI equity assets reached RMB 1514 4 billion, up 19 4% from the beginning of the year [1] - Fair value change gains and losses reached RMB 1476 6 billion, significantly contributing to revenue and profit [1] Financial Forecasts - The report raises EPS forecasts for 2024-2026 to RMB 1 51/1 93/2 30 per share (previously RMB 1 45/1 80/2 09 per share) [1] - P EV ratios are expected to be 0 94x/0 86x/0 79x for 2024-2026 [1] - Operating revenue is projected to grow at 8 39%/4 30%/4 26% in 2024-2026 [2] - Net profit attributable to parent company is expected to increase by 102 02%/27 96%/19 15% in 2024-2026 [2] - Embedded value per share is forecasted to grow at 3 90%/9 30%/8 62% in 2024-2026 [2] Industry Position - As the leader in China's life insurance industry, China Life Insurance demonstrates strong performance resilience [1] - The company continues to release transformation dividends on the liability side, benefiting the stabilization of core value indicators [1] - The company's transformation measures in product and business diversification are yielding results [1]