CPIC(601601) 华西证券·2025-04-27 09:21Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The report highlights that the growth in new business value (NBV) is driven by the bancassurance channel, while investment volatility has pressured profit margins [2][3][5] - The company achieved a total revenue of 937.17 billion yuan in Q1 2025, a year-on-year decrease of 1.8%, and a net profit attributable to shareholders of 96.27 billion yuan, down 18.1% year-on-year [2] - The weighted average return on equity (ROE) was 3.5%, a decline of 1.1 percentage points year-on-year [2] Summary by Sections Life Insurance - In Q1 2025, the company’s life insurance segment reported a premium income of 1,184.22 billion yuan, an increase of 11.8% year-on-year, with a significant growth in new business value (NBV) of 57.78 billion yuan, up 11.3% year-on-year [3] - The bancassurance channel saw a premium income of 257.22 billion yuan, a remarkable increase of 107.8% year-on-year, with new premium income rising by 130.7% [3] Property Insurance - The property insurance segment recorded a premium income of 631.08 billion yuan in Q1 2025, reflecting a year-on-year growth of 1.0% [4] - The combined ratio (COR) improved to 97.4%, a year-on-year enhancement of 0.6 percentage points, attributed to reduced natural disaster losses and enhanced management controls [4] Investment Performance - The company’s investment assets totaled 28,102.08 billion yuan, growing by 2.8% compared to the end of the previous year [5] - The net investment yield was 0.8%, unchanged year-on-year, while the total investment return rate decreased by 0.3 percentage points to 1.0% [5] - Fair value changes in investments significantly declined to 1.655 billion yuan from 15.104 billion yuan in the previous year, impacting overall profit performance [5] Financial Forecast and Valuation - The report maintains previous profit forecasts, estimating revenues of 4,154 billion yuan, 4,219 billion yuan, and 4,382 billion yuan for 2025-2027 [6] - Expected net profits for the same period are projected at 455 billion yuan, 462 billion yuan, and 508 billion yuan [6] - The price-to-earnings value (PEV) ratios are forecasted to be 0.49, 0.46, and 0.43 for 2025-2027, respectively, supporting the "Buy" rating [6]