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/Accumulate)
- Target Price: HK\$40.00
- Current Price (at report date): HK\$27.74
- Upside Potential: 44%
Key Insights:
- China Life management is highly confident in strong 1Q26F sales and New Business Value (NBV) growth, with double-digit APE premium growth and NBV growth up to 40% YoY expected due to margin expansion.
- Despite expected YoY net profit decline in 1Q26 due to weak equity market performance, the broker advises focusing on NBV and underlying business quality rather than short-term profit volatility.
- Bancassurance channel is a key driver, benefiting from maturing household deposits and increased cooperation with mid-sized banks.
- Major investor Ping An has increased its stake in China Life to 11.06%, signaling strong industry and company confidence.
- Valuation remains attractive, trading below historical P/EV mean with strong forecast NBV growth for FY26F-28F. Main risks include investment asset volatility and weaker Southbound investor flows.
Actionable Insight:
- Reiterate ADD (Buy/Accumulate) on China Life Insurance with a target price of HK\$40.00, driven by strong NBV growth outlook and sector confidence, offering 44% upside from the current price.
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
