601336: Profit Margins Will Improve But Weaker Revenue May Pressure Returns

Analysts have raised their price target for New China Life Insurance slightly, increasing the fair value estimate from ¥55.34 to ¥55.91. This adjustment is attributed to modest improvements in the company’s profit margin and a lower discount rate, despite weaker revenue growth expectations.

With both the future P/E ratio and discount rate remaining essentially unchanged, the consensus analyst price target for New China Life Insurance saw only a slight upward revision from CN¥54.30 to CN¥55.34. What's in the News Board approved interim cash dividend of RMB 0.67 per share, totaling approximately RMB 2,090 million for the first half of 2025, pending shareholder approval.

The notable upward revision in New China Life Insurance's price target reflects improved revenue growth forecasts, despite a decline in net profit margin, resulting in a fair value increase from CN¥50.48 to CN¥53.03. What's in the News Board approved plan to distribute 2025 interim cash dividend of RMB 0.67 per share, totaling approximately RMB 2,090 million, pending shareholder approval.

Despite a weaker revenue outlook, a significantly improved net profit margin has led analysts to raise their consensus price target for New China Life Insurance from CN¥46.54 to CN¥49.14. What's in the News Board agreed to nominate Mr. ZHANG Xiaodong as a candidate for non-executive director for the eighth session.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has increased revenue growth from -10.0% to -7.8% and decreased profit margin from 38.0% to 32.6%.

AnalystConsensusTarget has increased revenue growth from -11.2% to -10.0%, decreased future PE multiple from 11.9x to 9.8x and increased shares outstanding growth rate from -0.0% to 0.0%.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.