Jinwu Financial News | According to BOC International Development Research Report, China's Taibao (02601) net profit of Taibao's mother increased 1.1% year-on-year in the first quarter of 2024, and maintained steady growth on a high basis. Meanwhile, interbank profits generally declined year on year, and the company's profit performance exceeded market expectations. The results of the Changhang operation continued to be reflected. New single-instalment premiums paid through agent channels increased dramatically over the same period last year, and business quality improved. The value of the new business increased by 30.7% year on year, and the growth rate was higher than that of China Life Insurance and Ping An. The comprehensive cost ratio of financial insurance improved year-on-year, which is better than that of peers. The return on investment is steady, and the performance is better than that of peers.
According to the bank, the results of the company's life insurance reform continue to be reflected, the new business value growth rate is leading the industry, and the investment income and profit performance is steady. The bank updated its profit forecast based on the new accounting standards. It is expected that the improvement trend on both sides of the company's assets and liabilities will continue. ROE is expected to remain around 12%. Based on a net market ratio of 0.8 times in 2024, the bank lowered the target price from HK$30 to HK$25. The company currently has a net market ratio of 0.6 times and a dividend ratio of more than 6%. The valuation is attractive and maintains the buying rating.