[ET Net News Agency, 15 November 2018] Credit Suisse lowered its target price for China
Taiping Insurance (00966) to HK$34 from HK$35 and maintained its "outperform" rating.
The research house said China Taiping's individual-channel new business (NB) soared 40%
YoY in October and monthly life premium was up 15.3% (10-month 2018 up 7.4%). Total agents
number up 2.5% MoM to ~540k on high-calibre agent recruitment plan and increased resource
allocation.
China Taiping released its 3Q solvency report in late-October. NPAT of Taiping Life
(TPL) declined 42% in 3Q, mainly due to high base effect and A-share weakness. NAV trend,
however, was solid, +2.2% QoQ.
Credit Suisse said the target price cut reflects marking-to-market embedded value (MTM
EV) on equity and FX trend. (KL)