China Life(601628) 东吴证券·2025-04-30 01:48Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights a significant increase in net profit attributable to shareholders, with a year-on-year growth of 39.5% in Q1 2025, reaching 288 billion yuan [7][14] - The new business structure has notably improved, with the proportion of floating income business in the first-year premium income reaching 51.7%, a substantial increase compared to previous periods [7] - The company is expected to benefit from its competitive advantages as a leading player in the life insurance industry, with forecasts for net profit attributable to shareholders of 107.5 billion yuan, 112.0 billion yuan, and 120.5 billion yuan for 2025, 2026, and 2027 respectively [7][18] Financial Performance Summary - Total revenue for 2023 is projected at 344.27 billion yuan, with a year-on-year increase of 53.53% in 2024 [1] - Net profit attributable to shareholders is expected to reach 106.93 billion yuan in 2024, reflecting a year-on-year growth of 131.56% [1] - The company's total investment assets have grown to 6.82 billion yuan, with a net investment income of 442 billion yuan, showing a year-on-year increase of 3.7% [7] - The weighted return on equity (ROE) for Q1 2025 is reported at 5.5%, an increase of 1.2 percentage points year-on-year [7] Business Structure and Strategy - The company is actively diversifying its product offerings and enhancing its marketing strategies, with a focus on floating income products [7] - The sales team remains stable, with a slight decrease in the number of individual agents, but improvements in retention and efficiency are noted [7] - The report emphasizes the ongoing transformation of the sales force and the successful implementation of new marketing models [7] Valuation Metrics - The current market price is 36.23 yuan, with a price-to-earnings (P/E) ratio of 22.17 for 2023 and projected P/E ratios of 9.58, 9.53, and 9.14 for 2024, 2025, and 2026 respectively [5][18] - The price-to-embedded value (PEV) is projected to be 0.68x for 2025, indicating that the stock is still undervalued [7][18]