China Life: Expected performance catalyst

The first half of the company to achieve operating income of 216.66 billion yuan, an increase of 9.2%, attributable to the company's shareholders net profit of 18.034 billion, the growth of 7.4% per share, earnings of 0.64 yuan, two quarter 0.28 yuan. The net assets attributable to shareholders of the company are 191.7 billion, down 9.2% from the end of 09.　　The intrinsic value of 9.85 yuan per share. The premium growth is steady and the premium structure is deeply adjusted. The first half earned a premium of 183.589 billion yuan, an increase of 13.3% per cent. The first-year premium premiums rose 24.2% from the same period in 2009, and the first-year premium was raised from 24.5% in the same period in 2009 to 27.82%. The company raises the premium quality to obtain the obvious effect, after deducting holds the solvency quota cost the one year new business value is 18.85 billion, Apemargin is 39%, is higher than the ping an period of China 30%.　　The comprehensive compensation rate ((withdrawal payment + reimbursement expenses + Withdrawal Insurance liability reserve)/earned premium) remains stable, this period is 92.3%, 09 medium term is 93.7%. The insurance liability reserve is still cautious in assessing interest rates.　　The first half of the insurance interests of the security contract, the assessment rate is 2.62%-5.49%,09 year 2.69%-5.32%; for policies that do not lock the policy, the rate of assessment is 4.4% to 5%, with the same as 09, the relative peace hike assessment rate, the state life for reserve extraction remains cautious. After correction, the total investment rate of return is 1.1%,AFS. In this period, the company's investment income is 30.92 billion, down 11.4%, and the total investment rate is 2.51%. At the end of the year, the investment asset scale was 1.2429 trillion, which was 7.07% higher than the late 09, affected by the capital market adjustment, equity investment fell 4% to 11.5% at the beginning of the period, and the company remained in the financial sector, and bank deposits continued to rise to 33.89%, reaching a new high of nearly four years At the end of the term, the company was able to sell financial assets for sale at a loss of just 3.245 billion, 0.12 yuan per share, and 20.62 billion in the late 09, the loss of 17.37 billion this year.　　After the reduction, the total investment income of the company this year is 13.55 billion, the total investment yield is 1.1%. The first half of the company's underwriting business is more stable, investment business, especially equity investment is the biggest variable. Valuations, the current price implied in the first year of new business value multiples of 15.8 times times, the valuation has entered a long-term investment value range, maintaining overweight rating.