Broker: China Galaxy International Securities (CGSI)
Date of Report: April 17, 2026
Excerpt from China Galaxy International Securities report.
Report Summary
- Stock: China Life Insurance (2628 HK)
- Action: ADD (Buy) – Reiterate Add rating
- Target Price: HK\$40.00
Current Price: HK\$27.74
Potential Upside: 44%
- Key Idea: China Life management is highly confident about strong sales and New Business Value (NBV) growth for 1Q26, with expectations of double-digit annualised premium equivalent (APE) growth and NBV growth potentially reaching 40% year-on-year, driven by margin expansion.
- Highlights:
- Strong NBV and APE growth expected in 1Q26, especially through bancassurance channels as household time deposits mature, driving cross-sell opportunities.
- Despite likely net profit decline in 1Q26 due to weak equity markets, focus remains on NBV as a better reflection of business quality.
- Significant stake increases in China Life by Ping An, a major industry investor, signal high confidence in the sector’s outlook.
- Valuation considered attractive, trading below historical P/EV averages, with strong NBV growth expected into FY26-27.
- Implications:
- Investors are encouraged to focus on NBV and premium growth, not short-term equity volatility.
- Potential re-rating catalysts include stronger premium/NBV growth and A-share market rebounds.
- Key risks: investment asset volatility and competition with bank products, but upside from sector confidence and margin improvement.
- Recommendation: ADD (Buy) China Life Insurance (2628 HK), target price HK\$40.00. China Life remains a top pick among domestic Chinese insurers.
above is an excerpt from a report by China Galaxy International Securities. Clients of China Galaxy International Securities can be the first to access the full report from the China Galaxy International Securities website : https://www.chinastock.com.hk
