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JPM: CHINA LIFE (02628.HK) 1Q New Business Value Surges 75.5% YoY Far Above Expectations; Reiterates Overweight as Top Pick
Recommend 18 Positive 31 Negative 21 |
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JPM released a research report stating that CHINA LIFE (02628.HK)'s 1Q results are likely to trigger market divergence. The bank maintains a positive view, believing that strong new life insurance policy sales form a compelling equity story, largely offsetting the significant decline in earnings caused by A-share market volatility. New business value in 1Q surged 75.5% YoY, far exceeding the banks expectation of above 20%. Momentum in both agency and bancassurance channels remained robust, achieving growth despite a high base in 1Q last year, indicating market share gains and deeper distribution channel capabilities. The bank noted that net profit for the period fell 32% YoY to RMB19.5 billion, below its forecast of a 13% decline. It believes this does not pose significant share price risk, as the dividend policy has shifted to a progressive framework that decouples dividends from reported earnings. Market consensus has already factored in a 19% YoY decline in FY26 net profit, with earnings risks partly reflected in valuation. The core solvency adequacy ratio rose 28 ppts QoQ to 157%, a leading level within the industry. JPM reiterated CHINA LIFE as its top pick with an Overweight rating, expecting a positive share price reaction. The TP is HKD40, based on 8x projected 2026 price-to-earnings ratio. (ec/w) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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