> **来源：[研报客](https://pc.yanbaoke.cn)** # China Life (2628 HK) Company Update Summary ## Core Content China Life (2628 HK) reported its FY25 results, highlighting significant growth in net profit and net asset value (NAV), while experiencing a net loss in 4Q25 due to fair value contraction. The company's performance was influenced by turbulent stock and bond markets, leading to investment losses. Despite this, the company maintained a strong financial position with increased investment income and improved insurance service results. ## Main Points - **Net Profit and NAV**: - Net profit for FY25 rose **44.1% YoY** to **RMB154bn**, while 4Q25 recorded a **net loss of RMB13.7bn** due to fair value losses. - Net asset value increased **16.8% YoY** to **RMB595.2bn**, and ROE rose **6.2pct YoY** to **27.8%**. - **Dividend and Payout Ratio**: - DPS (Dividend per Share) increased **31.7% YoY** to **RMB0.86**, surpassing expectations. - Dividend payout ratio was **15.7%** in FY25, slightly lower than FY24's **17.2%**. - **New Business Value (VNB)**: - VNB grew **35.7% YoY** to **RMB45.8bn**, driven by **agency growth (+25.5% YoY, 86% mix)** and **Bancassurance & other channels (+1.69x YoY, 14% mix)**. - **Investment Portfolio**: - Total investment assets rose **12.3% YoY** to **RMB7.42tn**. - The mix of stocks and equity funds increased to **16.9%** (from 13.6% in 1H25). - FVOCI (Fair Value Through Other Comprehensive Income) stocks increased **66% from 1H25** or **2.86x YoY** to **RMB232.4bn**, while FVTPL (Fair Value Through Profit or Loss) stocks decreased in mix from **88% to 72.2%**. - **Valuation and Target Price**: - The stock is currently trading at **0.4x FY26E P/EV** and **0.9x FY26E P/B**. - The target price was **lifted to HK$33** (from HK$31), implying **0.52x FY26E P/EV** and **1.17x FY26E P/B**. - Analysts maintain a **BUY** rating. ## Key Financial Highlights | Metric | FY24A | FY25A | FY26E | FY27E | FY28E | |--------|------|------|------|------|------| | EPS (Reported) | 3.78 | 5.45 | 4.75 | 5.14 | 5.52 | | P/B | 1.2 | 1.0 | 0.9 | 0.8 | 0.7 | | P/Embedded Value | 0.4 | 0.4 | 0.4 | 0.4 | 0.3 | | Dividend Yield (%) | 2.9 | 3.9 | 4.1 | 4.3 | 4.5 | | ROE (%) | 21.7 | 27.9 | 20.7 | 19.0 | 17.5 | ## Strategic Outlook - The company plans to **focus on value stocks** with high payout and attractive valuations. - It aims to **scale up exposure to selective growth sectors**. - Management indicated that the **effective asset-liability duration gap was <1.5 years**, suggesting flexibility in bond allocation if long-term interest rates rise in 2026. ## Shareholding and Performance - **Shareholding Structure**: - **Ping An Insurance (Group)**: **10.1%** - **BlackRock, Inc.**: **6.9%** - **Share Performance**: - **12-month absolute return**: **17.9%** - **12-month relative return**: **23.9%** - **Market Cap**: **HK$707,755.6 million** ## Key Risks - **Prolonged low-interest rate environment** and potential **interest rate shocks**. - **Heightened equity market volatility**. - **Slower-than-expected new business sales** or transitions to participating policy sales. ## Analyst Certification and Disclaimer - The analyst certifies that the views expressed reflect personal opinions and are not influenced by compensation. - The report is for informational purposes only and not tailored to individual investors. - There may be material differences between actual outcomes and those predicted. - CMBIGM is not liable for any losses incurred from reliance on this report. - The report is intended for the use of the intended recipients only and may not be reproduced or distributed without prior written consent. ## CMBIGM Ratings - **BUY**: Stock with potential return of over 15% over the next 12 months. - **HOLD**: Stock with potential return of +15% to -10% over the next 12 months. - **SELL**: Stock with potential loss of over 10% over the next 12 months. - **NOT RATED**: Stock not rated by CMBIGM. - **OUTPERFORM**: Industry expected to outperform the relevant broad market benchmark. - **MARKET-PERFORM**: Industry expected to perform in-line with the relevant broad market benchmark. - **UNDERPERFORM**: Industry expected to underperform the relevant broad market benchmark. ## Additional Notes - The report is prepared by **CMB International Global Markets Limited**, a subsidiary of **China Merchants Bank**. - The company is not rated in the U.S. due to lack of registration as a broker-dealer. - The analyst is not registered or qualified as a research analyst under FINRA rules. - The report may include investment positions or transactions for the company or its clients. - Recipients should be aware of potential conflicts of interest and use the information at their own risk.