[ET Net News Agency, 4 November 2020] Daiwa Research lifted its target price for China
Pacific Insurance Group (CPIC)(02601) to HK$27 from HK$22.75 and upgraded its rating to
"outperform" from "hold".
The research house applauded CPIC's recent move to emphasise the jumpstart once again
after the past 3 years when its disappointing jumpstarts led to weak full-year operating
performance. Daiwa sees its jumpstart sales leading to a solid growth trajectory.
Daiwa expects CPIC to see a 40% surge in jumpstart pre-sales FYP (first year premium)
and double-digit VNB growth, underpinned mainly by (1) jumpstart pre-sales held two months
earlier versus last year, (2) a low base due to declines in the past three consecutive
years, (3) a more attractive product with shorter product duration and a universal account
settlement yield of 5.2%, and (4) steady agent headcount recovery. (KL)