On March 25, China Taiping (00966) reported impressive annual results, with shareholders' attributable profit reaching HK$27.059 billion in 2025, surging 220.9% year-on-year. The company declared a dividend per share of HK$1.23, up 251% compared to the previous year, significantly exceeding market expectations.

CICC promptly issued a research report reaffirming its "Outperform" rating on China Taiping and maintaining a target price of HK$33.1, implying a 56.3% upside from the current share price. The brokerage highlighted that various indicators point to sustained fundamental strength, suggesting that any short-term market fluctuations could present attractive entry opportunities.

CICC identified three key performance highlights: First, the company leads the industry in transitioning to participating life insurance products, with such policies accounting for 86.1% of first-year regular premium long-term insurance at Taiping Life. New business value reached RMB 8.661 billion, increasing 2.7% year-on-year, while embedded value growth is expected to outpace major peers. Second, property and casualty insurance underwriting profitability continues to improve, with Taiping P&C's combined ratio optimizing by 1.3 percentage points to 98.8% and insurance service performance surging 29.1% year-on-year. Third, investment operations demonstrated steady progress, with equity asset allocation rising to 17.3% and dividend income growing 29.4% year-on-year driven by high-dividend strategies.

CICC particularly emphasized that due to its leading position in participating insurance transformation, China Taiping's new business value shows only -5.7% sensitivity to interest rate declines, indicating significantly stronger risk resilience compared to industry peers.