CPIC’s Q1 Reported Better-Than-Peer Agent New Premium Growth

China Pacific Insurance’s, or CPIC's, first quarter was largely in line with our expectations. Net profit grew 1.5% year on year, versus 53% growth in the year-ago period. Total investment return was relatively stable at 4.6%, up 0.1 percentage point from the year-ago period. We maintain our A-share and H-share fair value estimates of CNY 30 and HKD 36, respectively. H-shares are trading at 15% below our fair value estimate, implying a historical low valuation level of 0.4 times 2021 price/embedded value. The stock is undervalued.