[ET Net News Agency, 9 April 2020] Morgan Stanley lowered its target price for Ping An
Insurance (02318) to HK$94 from HK$114 and maintained its "overweight" rating.
The research house said Ping An's share price has declined 19% year-to-date, but still
more defensive than peers, owing to its high-quality business and steady financial
performance. Its quality-focused organizational, channel and product restructuring have
affected growth but not share performance yet as earnings, EV (embedded value) and
dividend growth remain high (18%, 24% and 19% for 2019).
The company acknowledged that it will be negatively impacted by COVID-19 and Morgan
lowered its VNB (value of new business) growth forecast from 8% to 0%, but it expects Ping
An to stay as a more resilient operator given its superior digital platform and a more
performance-driven culture. (KL)