Dongwu Securities: Maintain a "buy" rating on China Life, short-term investment fluctuations in Q4 do not affect long-term value.

Dongwu Securities research report pointed out that China Life's 25-year net profit and NBV both showed high growth, and short-term investment fluctuations in Q4 do not affect long-term value. The 2025 net profit attributable to shareholders is 154.1 billion yuan, a year-on-year increase of 44.1%. The Q4 single-quarter loss was 13.7 billion yuan, compared to a profit of 2.4 billion yuan in the same period of 2024, mainly due to the impact of short-term investment fluctuations. The single-quarter investment income and fair value change loss in Q4 25 totaled -11.7 billion yuan, while in Q4 24 it was 16.1 billion yuan. The bank's judgment is mainly caused by short-term floating losses brought about by the correction of the growth sector, which is expected to significantly improve in Q1 26. It continues to be optimistic about the company's competitive advantage as a leader in the industry. The current A-share and H-share market values correspond to 2026 EPEV 0.7x and 0.4x respectively, and PB 1.7x and 1.0x respectively. The "buy" rating is maintained.