Nika MA, an analyst from CMB International Securities, maintained the Buy rating on China Life Insurance Co. The associated price target was raised to HK$31.00.
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Nika MA has given his Buy rating due to a combination of factors that highlight China Life Insurance Co’s strong financial performance and strategic positioning. The company reported a significant increase in net earnings for the third quarter, nearly doubling from the previous year, driven by robust insurance service results and investment gains. The improvement in insurance service results was supported by a rebound in interest rates, which reduced insurance service expenses and contributed to a record high in quarterly earnings.
Nika MA also noted the substantial growth in new business value (NBV), which more than doubled in the third quarter, fueled by a significant rise in first-year premiums and margin expansion. The company’s strategic shift towards a higher proportion of traditional participating life (TPL) stocks in its investment portfolio has enhanced earnings flexibility and is expected to support future growth. With these positive developments, the analyst has raised the earnings per share estimates and target price, maintaining a Buy recommendation for the stock.
MA covers the Financial sector, focusing on stocks such as Futu Holdings, China Life Insurance Co, and PICC Property & Casualty Co. According to TipRanks, MA has an average return of 23.5% and a 76.36% success rate on recommended stocks.