DBS released a research report reiterating its "BUY" rating on PING AN (02318), stating that the group remains its preferred pick among Chinese insurance stocks. The H-share target price is maintained at HK$69, while the A-share (601318.SH) target price is set at RMB 68.41 based on a 15% premium.
The bank expects PING AN's first-half new business value (VNB) growth to accelerate, primarily driven by continued strong sales of dividend products, particularly through bancassurance channels, with marginal profit margins also showing slight improvement. Additionally, the company's investment returns and asset portfolio outlook remain optimistic.
DBS anticipates that the combined cost ratio for property and casualty insurance business will improve significantly year-over-year in the first half, while Ping An Bank continues to adjust its business operations.
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