Grain Tune October 18th| DBS released a research report stating that china life insurance's new business value (VNB) in the first half of this year was strong, mainly due to positive progress in the reform of the agency distribution channel, improvement in business structure, substantial increase in the profitability of bank insurance channels, new product pricing, and improvement in cost structure. DBS predicts that china life insurance's VNB will grow at a rate of 16%, 11%, and 10% respectively for the fiscal years 2024 to 2026, with the expected improvements being more structural, mainly due to continued demand for retirement insurance products, reduction in financial costs driving VNB profitability, and continued reversal of commission expenses, expecting china life insurance to achieve double-digit VNB growth from high to low between fiscal years 2024 and 2026. Considering the A-share market's revaluation driving investment income improvement, DBS has raised its profit forecasts for china life insurance's fiscal years 2024 and 2025 by 32% and 5%, respectively. In addition, the bank believes that the improved stock market performance and strong VNB growth warrant further re-rating of china life insurance, and investors' concerns about its negative interest rate risk should also be alleviated. DBS has raised the target price of china life insurance's H shares from HK$18 to HK$20, reiterating a "buy" rating.