[ET Net News Agency, 1 November 2019] Daiwa Research lowered its target price for China
Pacific Insurance (CPIC)(02601) to HK$31 from HK$34 and maintained its "hold" rating.
The research house said CPIC management on Investor Day held on 31 October disclosed
plan to lift the core agent team percentage from 25% of its total agent headcount to 40%
in 3 years. Management intends to achieve this by recruiting full-time professional agents
and improving core agent retention and productivity through enhancing agent training,
allocating more expenses, and making changes to relevant KPIs.
Daiwa cut its 2019 VNB (value of new business) growth forecast for CPIC to -7% from 0%
and factored in the dilution from its intended GDR issuance for 2020-21. (KL)