Nika MA, an analyst from CMB International Securities, maintained the Buy rating on China Life Insurance Co. The associated price target is HK$29.00.
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Nika MA’s rating is based on several positive indicators for China Life Insurance Co. Despite a dip in second-quarter earnings, the analyst anticipates this to be a short-term issue, with expectations of recovery in the latter half of the year due to easing interest rate movements. The company has shown a strong dividend per share (DPS) growth, which outpaced net profit growth, indicating a positive outlook for shareholders.
Additionally, China Life’s new business value (NBV) has seen significant growth, driven by a surge in bancassurance and an improved product mix that favors par and protection-type policies. The company’s investment income has also been bolstered by increased spread income, and its core equities have shown enhancement. These factors, coupled with a strategic asset allocation and an improved underwriting structure, have led to an optimistic earnings forecast and a raised target price, justifying the Buy rating.
In another report released on August 29, DBS also maintained a Buy rating on the stock with a HK$26.00 price target.
CILJF’s price has also changed dramatically for the past six months – from $1.940 to $2.985, which is a 53.87% increase.