UOB Kay Hian released a research report stating that PING AN (02318) achieved a 3.7% year-over-year increase in after-tax operating profit in the first half of the year, broadly in line with expectations. This performance was primarily driven by the strong combined cost ratio performance of the property and casualty insurance business and the recovery of the asset management business following de-risking measures.
The firm has raised its after-tax operating profit forecasts for the company by 5.7%, 1.3%, and 1.2% for 2025, 2026, and 2027 respectively. New business value projections have been increased by 8.1%, 7.7%, and 5.7% for the respective years. The target price has been raised from HK$61 to HK$69, while maintaining a "Buy" rating.
The firm noted that benefiting from the recovery in first-year premium growth in the second quarter and continued profit margin expansion, new business value growth accelerated to 40% year-over-year. Management remains optimistic about the sustained momentum in operating profit and new business value growth in the second half of the year.
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