Credit Suisse has initiated coverage of New China Life Insurance (HKG:1336) with an "Outperform" rating and a target price of HK$35, which implies 2.1x book value, 1.7x embedded value and 10x value of new business, with stock at a discount to some peers despite likely higher growth profile.

The brokerage firm believes that the insurer's key positives include: strong potential growth profile - with strong historical strong growth rates and margin expansion; robust capital position - with some debt headroom and as such not likely to need equity capital for the next few years; and relative and absolute valuation appeal (with sector trading at all-time lows).