CMB International Securities analyst Nika MA maintained a Buy rating on China Pacific Insurance (Group) Co (CHPXF – Research Report) today and set a price target of HK$34.00.
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Nika MA has given his Buy rating due to a combination of factors influencing China Pacific Insurance (Group) Co’s performance. Despite a decline in net profit and net asset value in the first quarter of 2025, the company showed a significant increase in new business value, which rose by 39% on a like-for-like basis. This growth was driven by a substantial rise in bancassurance first-year premiums, indicating a recovery in margins.
Additionally, the company’s property and casualty combined ratio improved, reflecting effective expense management. Although the market-to-market losses on bonds affected profitability due to rising interest yields, Nika MA believes these are short-term issues. The long-term investment value, supported by operating profit after tax growth, remains strong. The stock’s valuation is attractive, trading at a low price-to-embedded value ratio, which supports the Buy recommendation.
MA covers the Financial sector, focusing on stocks such as Ping An Insurance Company of China, AIA Group, and China Pacific Insurance (Group) Co. According to TipRanks, MA has an average return of 5.3% and a 52.27% success rate on recommended stocks.