China Life (601628): New business value expected to continue strong growth in the third quarter

China Life (601628): New business value expected to continue strong growth in the third quarter

Predicting long-term earnings growth in the first three quarters?
180-200% On October 18, China Life issued an announcement announcing that it expects net profit growth in the first three quarters?
180-200%, exceeding market expectations.

We believe that it is mainly benefited from the significant improvement in investment income, changes in indicator policies, and base substitution in the same period last year.

Attention points Third-quarter profit growth exceeded expectations.

The company’s profit forecast implies a significant increase in net profit growth of 423-539% in the third quarter, exceeding market expectations.

It is expected that the growth rate of new business value in the third quarter will maintain a strong growth, clearly leading the industry.

We believe that the improvement of the 3Q19 business structure will at least improve the value of new business to maintain a growth rate of at least 15% and continue to lead the industry (negative or low single-digit growth).

The new leader’s execution capabilities will drive the company’s performance in 2020 to stay ahead of the industry.

Benefiting from the new strategy, which has brought about positive work strategies and outstanding execution capabilities, the company’s new business growth and profit growth in 2019 significantly outperformed its peers, and the reforms proposed in the early open days have substantially advanced.

We expect the company to maintain strong growth ahead of its peers in 2H19 and 2020, which 重庆耍耍网 will lead to turning to the market to question the company’s high-growth sustainability and promote gradual repair.

Estimates and recommendations China Life-H / A is currently trading at 0.

5/0.

9x 2019e P / EV.

Maintain the company’s profit forecast unchanged.

Maintain China Life-H / A’s target price of 28 reconstruction / 36 yuan, respectively, corresponding to 0.

8/1.

1x 2019e P / EV and 49% / 23% upside.

Maintain Outperform rating.

Risky stock markets fluctuated sharply, and long-term interest rates fell rapidly.