External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

China Life Insurance Company / Equity Bottom-Up

<ul><li>China Life reported a strong set of 3Q earnings, with 3Q25 net profit almost doubled on top of a high base in 3Q24 to RMB 126.9bn, marking a rise of 92% YoY and lifting the 9M25 result up by 61% YoY to RMB 167.8bn, close to the mid-point of profit alert.</li><li>The surge outpaced listed peers and was propelled by both insurance service results (benefiting from a rising yield, i.e. CNGB10YR up 22.7bps in 3Q25) and investment results (thanks to the strong rally in A/H shares, i.e. CSI 300/HSI +18%/+16%).</li><li>We mentioned in our last note that the dip in 2Q caused by increasing losses on onerous contracts which adversely impacted insurance service expense (ISE) is likely to be short-term, and in 3Q, as we see spot interest rate rebound, the insurer’s ISE largely dropped by 79% YoY to RMB 7.5bn (vs. 3Q24: RMB 36.2bn), accelerating the growth of insurance service results by 2.1x YoY to RMB 47bn, a quarterly high. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Life reported a strong set of 3Q earnings, with 3Q25 net profit almost doubled on top of a high base in 3Q24 to RMB 126.9bn, marking a rise of 92% YoY and lifting the 9M25 result up by 61% YoY to RMB 167.8bn, close to the mid-point of profit alert.The surge outpaced listed peers and was propelled by both insurance service results (benefiting from a rising yield, i.e. CNGB10YR up 22.7bps in 3Q25) and investment results (thanks to the strong rally in A/H shares, i.e. CSI 300/HSI +18%/+16%).We mentioned in our last note that the dip in 2Q caused by increasing losses on onerous contracts which adversely impacted insurance service expense (ISE) is likely to be short-term, and in 3Q, as we see spot interest rate rebound, the insurer’s ISE largely dropped by 79% YoY to RMB 7.5bn (vs. 3Q24: RMB 36.2bn), accelerating the growth of insurance service results by 2.1x YoY to RMB 47bn, a quarterly high. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Life (2628 HK) - 3Q Net Earnings Almost Doubled on a High Base

<ul><li>China Life reported mixed 1H25 results with net profit up by 7% YoY to RMB40.9bn, implying that 2Q’s bottom-line retreated 31% YoY (vs. 1Q25: +40% YoY), dragged by increased insurance service expense (ISE) due to a downward-trending interest rate in 2Q25 (-17bps vs. 1Q25/2Q24: +14bps/-10bps).</li><li>ISE rose 42% YoY to RMB 60.6bn in 2Q25, as a result of increasing losses on onerous contracts (+33% YoY).</li><li>2Q insurance service results ended at a RMB 7.8bn loss, down 175% YoY. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Life reported mixed 1H25 results with net profit up by 7% YoY to RMB40.9bn, implying that 2Q’s bottom-line retreated 31% YoY (vs. 1Q25: +40% YoY), dragged by increased insurance service expense (ISE) due to a downward-trending interest rate in 2Q25 (-17bps vs. 1Q25/2Q24: +14bps/-10bps).ISE rose 42% YoY to RMB 60.6bn in 2Q25, as a result of increasing losses on onerous contracts (+33% YoY).2Q insurance service results ended at a RMB 7.8bn loss, down 175% YoY. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Life (2628 HK) - 2Q Earnings Dip Could Be Short-Term; DPS Uptrend a Bright Spot

Insurance, Fintech & EM-focused Analyst, KT Capital Group, KT Capital Group

Alec Tseung

Insurance, Fintech & EM-focused Analyst, KT Capital Group

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

<ul>
<li>Share prices of China Life and Prudential plc have been up by 33% and 40% - 50% YTD, respectively.</li>
<li>China Life's agency restructuring is bearing fruit, as evidenced by increasing agency productivity, and is expected to continue driving new business growth and margin expansion.</li>
<li>Our previous thesis for Prudential plc remains largely intact. Albeit the strong share price performance YTD, valuation upside remains as its new business multiple continues to re-rate.</li>
</ul>


Share prices of China Life and Prudential plc have been up by 33% and 40% - 50% YTD, respectively.
China Life's agency restructuring is bearing fruit, as evidenced by increasing agency productivity, and is expected to continue driving new business growth and margin expansion.
Our previous thesis for Prudential plc remains largely intact. Albeit the strong share price performance YTD, valuation upside remains as its new business multiple continues to re-rate.


Two Asian Life Insurance Stocks (Both Up >30% YTD) Worth Closer Looks

<ul><li>1Q25 results beat on earnings and net assets. China Life’s net profit jumped 39.5% YoY to RMB28.8bn, underpinned by more-than-doubled insurance service results (+124%) to RMB 25.9bn, thanks to improved insurance service expenses (ISE) down 33% YoY (vs FY/4Q24: +20%/+18%).</li><li>The ISE cutback was due to 1) better-off claims experience for medical and health insurance products, and 2) reduced ISE for VFA contracts, as the discount rate of VFA liability reserves was set on spot rate, which benefitted from a rising yield in 1Q25 (i.e. China 10YR govt. bond yield up by 14.4bps from prior year-end).</li><li>Net assets recovered from a QoQ decline in 4Q24 (-10%) to rise 4.5% vs. year-start, thanks to improved asset-liability matching, for which the A/L effective duration gap was further narrowed to 1.5yrs in 1Q25 (vs FY24: &gt;2yrs) through proactive inforce portfolio mgmt. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1Q25 results beat on earnings and net assets. China Life’s net profit jumped 39.5% YoY to RMB28.8bn, underpinned by more-than-doubled insurance service results (+124%) to RMB 25.9bn, thanks to improved insurance service expenses (ISE) down 33% YoY (vs FY/4Q24: +20%/+18%).The ISE cutback was due to 1) better-off claims experience for medical and health insurance products, and 2) reduced ISE for VFA contracts, as the discount rate of VFA liability reserves was set on spot rate, which benefitted from a rising yield in 1Q25 (i.e. China 10YR govt. bond yield up by 14.4bps from prior year-end).Net assets recovered from a QoQ decline in 4Q24 (-10%) to rise 4.5% vs. year-start, thanks to improved asset-liability matching, for which the A/L effective duration gap was further narrowed to 1.5yrs in 1Q25 (vs FY24: &gt;2yrs) through proactive inforce portfolio mgmt. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>China Life reported in-line full-year results, with net profit up 132% YoY to RMB 106.9 bn under IFRS (or up 107% YoY to RMB 108.9bn under ASBE), at the midpoint per profit alert which expected to rise 122-144% (IFRS) and 100%-120% (ABSE), yet underperformed our forecast of RMB109bn under IFRS.</li><li>4Q net profit came in at RMB2.4bn, at low-end of our preview, down 70% YoY.</li><li>Net asset value dropped 10% QoQ in 4Q24 to RMB509.7bn, reflecting the rapid interest rate decline in last quarter with 10yr CN govt. bond yield down by 49bps. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Life reported in-line full-year results, with net profit up 132% YoY to RMB 106.9 bn under IFRS (or up 107% YoY to RMB 108.9bn under ASBE), at the midpoint per profit alert which expected to rise 122-144% (IFRS) and 100%-120% (ABSE), yet underperformed our forecast of RMB109bn under IFRS.4Q net profit came in at RMB2.4bn, at low-end of our preview, down 70% YoY.Net asset value dropped 10% QoQ in 4Q24 to RMB509.7bn, reflecting the rapid interest rate decline in last quarter with 10yr CN govt. bond yield down by 49bps. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Life (2628 HK) - 4Q Slowdown as Expected; DPS Exceeded >50%

China

China Life Insurance Co., Limited offers a wide range of life, accident, and health insurance products and services.

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China Life Insurance Co (Adr) (LFC US)

China Life (2628 HK) - 3Q Net Earnings Almost Doubled on a High Base

China Life reported a strong set of 3Q earnings, with 3Q25 net profit almost doubled on top of a high base in 3Q24 to RMB 126.9bn, marking a rise...

CMB International

China Life (2628 HK) - 2Q Earnings Dip Could Be Short-Term; DPS Uptrend a Bright Spot

China Life reported mixed 1H25 results with net profit up by 7% YoY to RMB40.9bn, implying that 2Q’s bottom-line retreated 31% YoY (vs. 1Q25: +40%...

CMB International

Two Asian Life Insurance Stocks (Both Up >30% YTD) Worth Closer Looks

After years of underperformance, China Life and Prudential are finally recovering. China Life's agency restructuring is bearing fruit while...

Alec Tseung

China Life (2628 HK) - Profit Beat

hina Life’s net profit jumped 39.5% YoY to RMB28.8bn, underpinned by more-than-doubled insurance service results (+124%) to RMB 25.9bn,

CMB International

China Life (2628 HK) - 4Q Slowdown as Expected; DPS Exceeded >50%

Net asset value dropped 10% QoQ in 4Q24 to RMB509.7bn, reflecting the rapid interest rate decline in last quarter with 10yr CN govt. bond yield...

CMB International

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