BOCOM International released a research report upgrading its underwriting profit and investment return forecasts for PICC P&C (02328), raising earnings projections. The firm expects the company's 2025 profit to grow 28% year-on-year, with ROE anticipated to remain above 14% from 2025 to 2027. Based on 1.7x 2025 price-to-book ratio, the target price has been raised from HK$17 to HK$24, maintaining a "buy" rating.

The research house noted PICC P&C's robust profit growth. In the first half of the year, the company achieved net profit growth of 32.3% year-on-year, with strong increases in both underwriting profit and investment returns. Annualized ROE reached 9%, rising 1.3 percentage points year-on-year. The company proposed an interim dividend of RMB 0.24 per share, representing a 15.4% year-on-year increase.

Both underwriting and investment performance were excellent in the first half, with ROE improving year-on-year. The firm expects that the implementation of unified reporting and pricing for non-motor insurance will drive improvement in non-motor insurance combined ratios, further highlighting the company's competitive advantages as a leading property and casualty insurance company.