Goldman Sachs: Raises target price of China Life Insurance (02628) to HK$17.5, rates it as "buy"

Goldman Sachs released a research report stating that the dividend return of China Life Insurance (02628) in 2024 exceeded expectations, resulting in an upward adjustment of 17% to 18% in the forecasted dividends per share for the years 2025 to 2027, and a 2% to 3% upward adjustment in book value forecast to reflect the increase in the ten-year bond yield from less than 1.7% at the end of 2024 to about 1.9%. Due to the decrease in long-term investment return expectations, Goldman Sachs also lowered the forecast for the new business value of China Life by 27% to 28%, and the embedded value forecast by 4% to 7%. They give a "buy" rating with a target price raised from HK$17 to HK$17.5, corresponding to a 2026 forecast price-to-book ratio of approximately 0.8 times.