[ET Net News Agency, 6 September 2019] J.P. Morgan lifted its target price for New
China Life Insurance (NCI)(01336) to HK$40 from HK$39 and maintained its "neutral" rating.
Reflecting the lower-than-expected tax expense in 1H reporting due to the implementation
of a favourable policy raising the cap on the tax-deductible portion of commission
expenses, the research house revised down our tax expense assumption by -83% in FY2019.
JPM raised its top-line forecast in FY2020/2021 by 1%, while maintaining it unchanged in
FY2019 as it expects premium growth to remain relatively weak this year. Its net profit
forecast was increased by 34% in FY2019 thanks to the reduced tax expense.
It forecast NBV growth of -12% and NBV margin to shrink by 7%p in FY2019. (KL)