Nika MA, an analyst from CMB International Securities, maintained the Buy rating on China Life Insurance Co (CILJF – Research Report). The associated price target remains the same with HK$20.00.
Nika MA’s rating is based on a combination of factors that highlight the strong financial performance and strategic positioning of China Life Insurance Co. The company reported a significant increase in net profit, more than doubling to RMB 107 billion under IFRS, marking the first time it exceeded RMB 100 billion annually. This surge was primarily driven by robust investment income, including realized gains from FVOCI debt and unrealized gains from FVTPL assets, which capitalized on favorable market conditions.
Nika MA also noted the company’s improved product mix and strengthened asset allocations, which are expected to ease investment seasonality and support future earnings growth. Despite a short-term pressure on stock price due to dividend policy fluctuations, the long-term outlook remains positive with projected growth in new business value (NBV) and enhanced margins. The stock’s valuation, trading at attractive multiples, further supports the Buy rating, with a target price set at HK$20.0, reflecting confidence in China Life’s ability to sustain its financial momentum.