[ET Net News Agency, 14 December 2020] Daiwa Research raised its target price for China
Pacific Insurance Group (CPIC) (02601) to HK$41.5 from HK$35 and reiterated its "buy"
rating.
The research house sees CPIC Life's turnaround as sustainable, with a positive outlook
at CPIC P&C, and appreciates its more market-oriented remuneration mechanism and steady
dividends.
Daiwa said CPIC management's VNB (value of new business) growth target for 2021 is
"above peer average", after underperforming over 2018-20. Daiwa sees this target as
achievable and expect its 2021 VNB growth to be among the highest versus peers.
It expects CPIC's focus on, and apparent adept execution of, jumpstart pre-sales to
result in peer-leading new business growth, not only in 1Q 2021 but also throughout 2021.
Daiwa raised its 2021-22 net profit forecasts by 3-7% on higher interest rates. (KL)