CMB International Securities analyst Nika MA maintained a Buy rating on Ping An Insurance Company of China today and set a price target of HK$71.00.
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Nika MA has given his Buy rating due to a combination of factors including Ping An’s strong performance in certain areas despite mixed overall results. The company’s New Business Value (NBV) saw a significant increase of 39.8% year-over-year, primarily driven by the bancassurance channel, which experienced a remarkable growth of 169%. This growth in NBV was complemented by margin expansions in agency and community finance.
Moreover, Ping An’s Group Operating Profit After Tax (OPAT) rose by 3.7% year-over-year, aligning with market expectations. Although there were some short-term investment variances and one-off losses, the company’s core business segments showed stability. The valuation of Ping An’s stock remains attractive, trading at a discount relative to its estimated future earnings and book value, which supports the Buy recommendation. Additionally, potential catalysts such as a new round of PIR cuts and extensive partnerships with large state-owned enterprises and banks are expected to drive future growth.
In another report released today, DBS also reiterated a Buy rating on the stock with a HK$69.00 price target.