Nika MA, an analyst from CMB International Securities, maintained the Buy rating on China Pacific Insurance (Group) Co. The associated price target is HK$40.00.
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Nika MA has given his Buy rating due to a combination of factors that highlight the positive financial trajectory of China Pacific Insurance (Group) Co. The company’s second-quarter earnings showed significant improvement, with Group and Life OPAT increasing by 7.1% and 5% respectively, indicating a strong sequential performance. Additionally, the net profit experienced a robust rebound, growing by 11% year-over-year in the first half, which translated into a 36% year-over-year growth in the second quarter.
Another contributing factor to the Buy rating is the notable increase in new business value (NBV), which surged by 32.3%, driven largely by a substantial rise in bancassurance. The company’s transition to floating-yield products has been successful, as evidenced by the impressive growth in participating first-year regular premiums (FYRP). Furthermore, the property and casualty (P&C) combined ratio improved, reflecting better underwriting profitability. These positive developments, coupled with an upgraded target price and revised earnings estimates, underpin the Buy recommendation.