The Zhitong Finance App learned that CMB International released a research report stating that considering China Life Insurance (02628)'s improved business quality and excellent profit performance in the first half of the year, the 2026-2028 earnings forecast was raised to 7.67 yuan, 6.10 yuan and 6.55 yuan, and the target price was raised from HK$34 to HK$39, corresponding to the 2026 forecast containing 0.6 times the value and 1.3 times the market account ratio, maintaining the “buy” rating.
The company's performance in the first half of 2026 was strong. The Group's net profit for the first half of the year increased sharply by 2.29 times year-on-year to 134.5 billion yuan, which is in the middle of previous profit forecasts. Among them, net profit for the second quarter surged 8.48 times year on year to 115 billion yuan. New business value (NBV) increased 33.7% year over year to RMB 38.2 billion, leading the industry in growth; the interim dividend year increased sharply by 50.4% year over year to RMB 0.358 per share, far exceeding market expectations.
According to the report, the sharp increase in profit was mainly due to an increase in insurance service performance of 23 billion yuan and an increase in investment income of 182.2 billion yuan. According to management, net profit for the first half of the year would still increase 12.7% year-on-year to RMB 57.6 billion if the impact of short-term fluctuations in open market stocks was excluded. The Group's asset liability management continued to improve, and the long-term gap between effective assets and liabilities narrowed to less than 1.3 years, which is the best level in the industry.