Morgan Stanley has released a research report updating its model for PICC Group (01339) based on the company's first-half 2026 results. The brokerage has lowered its net profit after tax per share forecasts for 2026, 2027, and 2028 by 6%, 7.3%, and 7.4%, respectively.

These adjustments incorporate the impact of the third-quarter 2026 stock market correction and a partial slowdown in the health insurance segment's earnings, while the life insurance and property and casualty insurance operations have been kept largely unchanged. The firm's dividend per share forecasts have been essentially maintained.

Additionally, Morgan Stanley has updated its RMB to HKD exchange rate assumption, revising it from 1.15 to 1.17. The target price has been slightly trimmed by 1.4% to HK$7.2, down from HK$7.3, with an "Overweight" rating maintained.