Analyst Nika MA from CMB International Securities maintained a Buy rating on Ping An Insurance Company of China and decreased the price target to HK$86.00 from HK$90.00.
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Nika MA has given his Buy rating due to a combination of factors, including the expectation that Ping An’s operating profit will remain solid and continue to grow, mainly supported by the life and health as well as asset management businesses. Although reported net profit may decline in the near term because of equity market volatility, she believes the company is comparatively better positioned than peers thanks to its portfolio structure and resilient core earnings.
Furthermore, she expects a sustained rise in new business value driven by strong savings demand and robust bancassurance-led sales, even if margins soften slightly due to product and channel mix shifts. On valuation, the shares trade at undemanding multiples of embedded value and book value while offering an attractive dividend yield and healthy operating ROE, and potential catalysts such as a turnaround in banking profits and reduced drag from asset management underpin her positive stance.
In another report released on April 8, Morgan Stanley also maintained a Buy rating on the stock with a HK$89.00 price target.