Bank of America Securities: China Life (02628) outperformed the industry's total return on investment in the first three quarters and raised the target price to HK$29.3

The Zhitong Finance App learned that Bank of America Securities released a research report saying that China Life Insurance (02628)'s net profit for the first three quarters reached 167.8 billion yuan, up 61% year-on-year under a high base, far exceeding market expectations. The bank reiterated its “buy” rating for China Life Insurance H shares, and the target price was raised from HK$25.7 to HK$29.3.

China Life Insurance's net profit for the third quarter was RMB 126.9 billion, up from RMB 106.9 billion last year. Among them, quarterly investment revenue increased 92% year over year, benefiting from realized earnings and fair value earnings contributions, indicating that the company significantly benefited from the upward trend in the A-share market. The total return on investment for the first three quarters reached 6.4%, the highest in the industry, higher than the 5.5% to 5.8% of other leading life insurance companies. According to the bank, China Life Insurance's profit for the first three quarters has exceeded the bank's previous full-year estimate. The company's profit forecast for the full year was raised by 91%. Based on higher investment income than expected, the profit forecast for next year and the following year was raised by 14%, and the return on investment is expected to normalize.