Ping an Insurance's Likely Weak 2Q Bancassurance Segment Could Weigh on 1H Results

Dow Jones
08/19

0725 GMT - Ping An Insurance's expected weak 2Q bancassurance performance will likely weigh on growth in its 1H new business value, says China Galaxy International's Michael Chang in a note. He estimates the insurer's 1H new business value grew 12% from a year earlier, with 2Q likely flat on year, contrasting markedly with 1Q's 21% gain. He anticipates Ping An to provide greater visibility on its earnings recovery at its results briefing, given a challenging 3Q new business value growth outlook on high-base effects, he says. CGI cuts its target price to 78.00 Hong Kong dollars from HK$82.00. Still, Ping An's likely solid 2026-2028 operating profit after tax growth leads CGI to retain its add rating. Shares rise 0.5% to HK$54.15.

 

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