In a report released today, Ken Shih from DBS maintained a Buy rating on China Pacific Insurance (Group) Co, with a price target of HK$36.00.
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Ken Shih has given his Buy rating due to a combination of factors that suggest a positive outlook for China Pacific Insurance (Group) Co. The company has demonstrated strong growth in its new business value, particularly through its bancassurance channel, which saw a significant increase. This growth is expected to continue, supported by a favorable shift in product mix towards participating products and a positive demand for protection products.
Despite some challenges, such as a higher tax rate due to timing mismatches in tax-exempt income recognition and a persistent asset-liability evaluation interest rate mismatch, the company has shown resilience. The valuation base has been rolled over to FY26F, with an increased price-to-embedded value multiple, reflecting an improved investment outlook. These factors contribute to the decision to maintain a Buy rating with a target price increase to HKD36.