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2026-11-02 11:47:41 BofA Securities published a research report stating that CHINA LIFE (02628.HK) reported net profit of RMB89.4 billion for the first nine months of this year, down 47% YoY due to a high base in the same period last year. In 3Q, the company recorded a loss of RMB45.1 billion as investment income declined, including fair value losses, mainly dragged down by weakness in the Mainland Chinese stock market, particularly growth stocks. Total investment return for the first nine months (non-annualized) was 3.2%, compared with 6.4% in the same period last year. Net asset value fell 2% QoQ. Excluding short-term market volatility, a figure similar to operating profit rose 16% YoY. BofA Securities expected CHINA LIFE's full-year earnings in 2026 to decline 26% YoY, but the company will target maintaining stable dividend per share. Value of new business rose 13% YoY in the first nine months, outperforming other major peers that recorded YoY declines, benefiting from strong sales in 1Q26. First-year premiums from agents rose 4% YoY, while first-year premiums from bancassurance fell 8% YoY. Improvement in the value of new business margin was also one of the growth drivers, supported by lower guaranteed rates and potentially lower agent commissions. Management expressed confidence in sales growth during the "good start" campaign, and the broker believed the key lies in the recovery of the bancassurance channel. The broker maintained its forecasts and TP unchanged, reiterating a Buy rating on CHINA LIFE (02628.HK) H shares with a TP of HKD29, with the current valuation equivalent to 0.8x forecast 2026 P/B ratio. For CHINA LIFE (601628.SH) A shares, it maintained an Underperform rating with a TP of RMB29, equivalent to 1.4x forecast 2026 P/B ratio. (da/ad)~ AASTOCKS Financial News Website: www.aastocks.com 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. | |