CMB International Securities analyst Nika MA maintained a Buy rating on China Pacific Insurance (Group) Co (CHPXF – Research Report) yesterday and set a price target of HK$34.00.
Nika MA has given his Buy rating due to a combination of factors including the strong financial performance of China Pacific Insurance (Group) Co. The company reported a significant increase in net profit, which rose by 64.9% year-over-year, reaching RMB 45.0 billion. This growth was supported by robust insurance service results and impressive net investment outcomes. Additionally, the Life OPAT and NBV growth exceeded expectations, showcasing the company’s ability to manage assets and liabilities effectively in a challenging low-interest-rate environment.
Nika MA also highlighted the company’s strategic management of its agency force, which has led to a notable increase in agency FYP growth. The stock’s valuation appears attractive, trading at a low price-to-embedded value ratio, and the company maintains a solid dividend payout ratio. Despite some challenges in the P&C segment, the overall outlook remains positive, with expectations of continued value growth and solid fundamentals. These factors collectively support the Buy recommendation, with a target price set at HK$34.0.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a HK$34.00 price target.
CHPXF’s price has also changed slightly for the past six months – from $3.600 to $3.650, which is a 1.39% increase.