CPIC(601601) 天风证券·2024-11-01 07:15Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 36.8 RMB [5] Core Views - The company's Q3 2024 net profit reached 13.18 billion RMB, a year-on-year increase of 173.6% [1] - For the first three quarters of 2024, the company achieved a net profit of 38.31 billion RMB, up 65.5% year-on-year [1] - The company's investment income saw significant growth, with total interest income, investment income, and fair value changes reaching 98.5 billion RMB, up 105.9% year-on-year [1] - The total investment yield and net investment yield were 4.7% and 2.9% respectively (annualized to 6.3% and 3.9%) [1] - The company's new business value (NBV) for the first three quarters of 2024 was 14.24 billion RMB, up 37.9% year-on-year [2] - The new business value margin improved to 20.1%, up 6.2 percentage points year-on-year [2] Business Segments Life Insurance - Individual insurance channel contributed significantly, with new premium income of 33.83 billion RMB, up 16.3% year-on-year [2] - The core workforce increased by 2.4% year-on-year, with monthly average core workforce reaching 58,000 [2] - Bancassurance channel achieved new premium income of 24.02 billion RMB, down 18.4% year-on-year, but with a rebound in growth rate by 12 percentage points [3] Property Insurance - The company achieved premium income of 159.82 billion RMB, up 7.7% year-on-year [3] - Non-auto insurance premium income grew faster than auto insurance, with non-auto insurance premium income reaching 81.69 billion RMB, up 12.2% year-on-year [3] - The combined ratio for property insurance remained stable at 98.7%, unchanged from the same period last year [3] Financial Projections - The report forecasts net profit attributable to the parent company for 2024-2026 to be 44.47 billion RMB, 46.93 billion RMB, and 50.56 billion RMB, representing year-on-year growth of 63.1%, 5.5%, and 7.7% respectively [3] - Earnings per share (EPS) for 2024-2026 are projected to be 4.91 RMB, 5.18 RMB, and 5.58 RMB [4] - The price-to-earnings ratio (P/E) is expected to be 7.50x, 7.11x, and 6.60x for 2024-2026 [4] Key Financial Metrics - The company's total investment assets are projected to grow from 2.02 trillion RMB in 2022 to 3.10 trillion RMB in 2026 [9] - The embedded value (EV) is expected to increase from 519.62 billion RMB in 2022 to 626.36 billion RMB in 2026 [9] - The solvency adequacy ratio for the group is projected to remain stable at around 258% from 2024 to 2026 [9]