CMB International Securities analyst Nika MA has maintained their bullish stance on PPCCF stock, giving a Buy rating on April 1.
Nika MA has given his Buy rating due to a combination of factors that highlight PICC Property & Casualty Co’s strong financial performance and strategic improvements. The company reported a significant increase in net profit for the first quarter of 2025, driven by a better combined ratio (CoR) due to fewer catastrophic claims and an optimized asset allocation strategy. This shift in asset allocation from FVTPL to FVOCI has helped stabilize investment income amidst market fluctuations.
Nika MA also notes that the company’s focus on stringent expense controls and an improved underwriting structure, particularly in the non-auto sector, has contributed to a more favorable CoR. Additionally, the anticipated growth in auto premiums, supported by rising new vehicle sales and increased penetration of new energy vehicles, further strengthens the company’s outlook. The strategic increase in equity allocation to high-yield stocks and the rebound in bond yields are expected to bolster investment income, supporting the Buy rating with a target price of HK$15.8.
In another report released on April 1, DBS also maintained a Buy rating on the stock with a HK$15.20 price target.