Goldman Sachs maintains "buy" rating on China Life Insurance (02628) and raises target price to HK$19.

Goldman Sachs released a research report stating that after China Life Insurance (02628) announced its third-quarter results, the company's profit forecast for this year was raised by 19%. This was mainly due to the better-than-expected investment performance in the third quarter, and the slight adjustment of profit forecasts for the next two years by 1% to 2%. Therefore, Goldman Sachs slightly raised the target price of China Life from HK$18 to HK$19 and maintained a "buy" rating on its H shares. Goldman Sachs maintained its forecast for China Life's dividend per share this year at 0.65 yuan, representing a year-on-year increase of 51%, indicating a dividend payout ratio of about 17% this year. Based on a 30% dividend payout ratio, the dividend per share forecast for 2025 and 2026 was adjusted by 6% and 3% respectively. In addition, Goldman Sachs raised its forecast for the new business value of China Life in 2024 to 2026 by 6% to 10%, reflecting better-than-expected profit margin expansion so far this year, as well as the expected further decline in policy guarantee income in the fourth quarter of this year.