China Life(601628) 东吴证券·2025-04-30 02:23Investment 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 premiums rising to 51.7% in Q1 2025, 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 grew by 3.1% to 6.82 billion yuan, while total investment income decreased by 16.8% to 53.8 billion yuan [7] - The weighted return on equity (ROE) improved to 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, focusing on floating income products, which are expected to enhance profitability [7] - The sales force remains stable, with a slight decrease in individual agents, but improvements in retention and recruitment rates are noted [7] - The "Seed Plan" initiative is being implemented to further enhance the quality and performance of the sales team [7] Valuation Metrics - The current market capitalization is approximately 1,024.03 billion yuan, with a price-to-earnings (P/E) ratio of 22.17 for 2023 [5][17] - The price-to-embedded value (PEV) is projected to be 0.68x for 2025, indicating that the stock is still undervalued [7][18]