[ET Net News Agency, 19 July 2018] Credit Suisse raised its target price for New China
Life (NCI)(01336) to HK$44 from HK$40, and upgraded its rating to "outperform" from
"neutral" on profit alert and faster-than-expected 2Q sales recovery.
NCI has issued a positive profit alert. The research house expects earnings upward
revisions by street to follow. It estimated 1H VNB to decline at low-teens percentage
level, ahead of market expectation (-20%). 1H NB sales of health achieved a positive
growth, and VNB margin is set to improve YoY, on increased resource allocation to local
branches, better incentives for protection sales offered to agents, and intensive
training.
Compared with peers, NCI would benefit from a lower 2H base (VNB: NCI +0.3%; peers +
5~30% YoY in 2H 2017), Credit Suisse said. (KL)