[ET Net News Agency, 7 December 2020] Morgan Stanley lifted its target price for PICC
Property & Casualty (02328) to HK$12 from HK$11 and maintained its "overweight" rating.
The research house said PICC P&C underperformed insurance peers in 2020 - down 31% due
to losses from credit insurance and uncertainty bought by auto reforms. Morgan believes
market concerns are overdone and profitability could remain fairly stable for the name in
2021.
Multiple has bottomed at 0.6x 2021 P/B versus an average of 1.6x P/B over the last 10
years and a re-rating is likely if the company can maintain its margin and dominance in
the auto insurance industry, Morgan noted. (KL)