CICC: Raises China Life Insurance (02628) target price to HK$31, maintains "buy" rating.

CMB International released a research report stating that China Life Insurance (02628) had impressive performance in the third quarter of this year, with net profit nearly doubling to 126 billion yuan on a high base of the previous year, a year-on-year increase of 92%, driving the net profit for the first nine months to 167.8 billion yuan, a year-on-year increase of 61%. The company's profit growth in the third quarter outperformed its peers, mainly benefiting from the dual drivers of insurance service performance and investment service performance growth. The bank maintained a "buy" rating on China Life and raised its target price from 29 yuan to 31 yuan. The bank pointed out that China Life's new business value in the first three quarters of this year increased by 41.8% on a comparable basis, a significant increase from the 20.3% growth in the first half of the year. The bank expects the new business value in the third quarter to surpass double-digit growth on a comparable basis, with first-year new single premiums increasing by 53% year-on-year, and the value rate continuing to rise under the adjustment of interest rates and product structures. Looking ahead to the fourth quarter, the low base effect of the substantial decline in interest rates in the same period last year may drive profit growth. Considering the significant increase in profit in the third quarter of China Life, CMB International raised its earnings per share forecast for the fiscal years 2025 to 2027 from the original 2.99 yuan, 3.23 yuan, and 3.67 yuan to 6.03 yuan, 4.41 yuan, and 4.95 yuan respectively, and raised the full-year new business value growth forecast to 38%.