Analyst Nika MA of CMB International Securities maintained a Buy rating on PICC Property & Casualty Co, with a price target of HK$21.60.
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Nika MA has given his Buy rating due to a combination of factors that highlight PICC Property & Casualty Co’s strong financial performance and strategic initiatives. The company reported a significant increase in net profit for the first half of the year, driven by a substantial rise in both underwriting profit and net investment results. This performance was supported by a decrease in the combined ratio, indicating improved operational efficiency and cost management.
Nika MA also noted the company’s successful overseas expansion and the integration of reporting and operations for non-auto insurance, which are expected to further enhance profitability. The company’s investment strategy has been effective, capturing gains from the stock market upturn, and the valuation remains attractive with a price-to-book ratio that suggests potential for growth. These factors, along with an optimistic outlook for future earnings, underpin the Buy rating for PICC Property & Casualty Co.