[ET Net News Agency, 29 October 2020] HSBC Global Research lifted its target price for
China Life Insurance (02628) to HK$20.2 from HK$19.5 driven by the appreciation of the
RMB/HKD and maintained its "hold" rating.
The research house noted key takeaways from the analyst call of 3Q results: (1) No
additional NBV growth guidance was given; (2) management believes the reasons for new
business weakness in 3Q is similar to peers; (3) management focussed on strengthening the
agency force and preparing for the 2021 Jumpstart campaign during 3Q; (4) agent numbers
fell with some leaving as anticipated pent-up new business demand did not materialise
and others due to restructuring; (5) Ant Group investment is being held as available for
sale so any gains will not flow through the P&L unless realized; and (6) the next step in
China Life's revitalization strategy is likely to involve setting up share service centers
in 2021 to support sales, risk management and technology development. (KL)