[ET Net News Agency, 24 September 2019] Nomura lowered its target price for China
Pacific (CPIC)(02601) to HK$39.03 from HK$39.14 and maintained its "buy" rating.
The research house expects single-digit agency FYP (first-year premium) contraction in
3Q, but NBV (new business value) growth may be flat. Hence, Nomura lowered FY2019 NBV
growth to -3% from 1%, implying 2H NBV growth of 4%; and it lowered FY2019 written FYP to
-1% from 3%, implying 2H written FYP growth of 2%.
CPIC announced that it plans to list Global Depository Receipts (GDRs) on the London
Stock Exchange backed by new issuance of A-shares. Nomura expects the impact of the GDR
issuance on the H-shares to be small compared to A-shares. (KL)