DBS: China Life Insurance Co Ltd – Buy Target Price HK$16.00
alanyeo
Riding on stronger agent sales team
China Life unveils new individual agency channel reforms (“Seed Program”) on Corporate Day
Seed Program to be positive on long-term quality growth of the agency channel, which has been long-awaited by the market
Given stricter regulatory rules on insurance sales, we expect VNB y-o-y growth to be a positive single-digit % in FY24/25F
Revise down FY24F VNB assumption by 6%, lower H-share TP to HK$16 on weaker VNB growth prospects, but maintain BUY as most negatives have already been priced in; Also cut A-share TP to Rmb27.68, and maintain HOLD
