Analyst Ken Shih of DBS reiterated a Buy rating on Ping An Insurance Company of China, with a price target of HK$69.00.
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Ken Shih has given his Buy rating due to a combination of factors that highlight Ping An Insurance Company of China’s promising growth prospects. The company is expected to see strong growth in its Value of New Business (VNB) in the second quarter of 2025, driven by robust sales of participating products, particularly through its bancassurance channels. These products are attractive to mid-to-high-net-worth clients, offering returns that are competitive with current bank deposit rates.
Additionally, Ping An’s investment income outlook is positive, supported by a rising equity market and a slight decline in bond yields. The company’s strategic focus on operational stability, with a significant portion of stock investments allocated under fair value through other comprehensive income (FVOCI), is expected to contribute to stronger book value growth and progressive dividend distributions. Despite potential market challenges, Ping An’s current valuation and dividend yield present a compelling investment opportunity, justifying the Buy rating.
In another report released on July 28, J.P. Morgan also maintained a Buy rating on the stock with a HK$80.00 price target.