CMB International Securities analyst Nika MA maintained a Buy rating on Ping An Insurance Company of China (PIAIF – Research Report) yesterday and set a price target of HK$65.10.
Nika MA has given his Buy rating due to a combination of factors that highlight Ping An Insurance Company of China’s potential for growth and profitability. Despite mixed results for FY24, the company showed a notable increase in Group OPAT by 9.1% year-over-year, driven by a significant rebound in property and casualty (P&C) insurance and reduced losses in asset management. This positive performance, alongside a 28.8% year-over-year increase in new business value (NBV) on a like-for-like basis, underscores the company’s resilience and strategic focus on optimizing its business mix.
Moreover, Ping An’s agency force expansion and strategic transition towards par product sales are expected to enhance its liability structure, potentially reducing costs and improving valuation sensitivity. The company’s valuation remains attractive, trading at a discount with a promising yield and forward return on equity. Considering these factors, along with steady insurance results and a positive outlook for sustainable profitability, Nika MA maintains a Buy rating with a target price unchanged at HK$65.1.
In another report released on March 20, J.P. Morgan also upgraded the stock to a Buy with a HK$70.00 price target.