[ET Net News Agency, 25 November 2019] Nomura lowered its target price for China Re
(01508) to HK$1.34 from HK$1.62 and downgraded its rating to "neutral" from "buy".
The research house thinks China Re should focus on improving the ROEs of its main
subsidiaries with key strategies, including (1) increasing dividend payout ratio rather
than fundraising, to increase (rather than decrease) financial leverage; (2) accelerating
business development to utilize capital more efficiently, and (3) improving underwriting
profitability.
In addition, Nomura believes that China Re should consider spinning off its subsidiaries
and increase market-based incentives to its management team through mixed-ownership
reform.
It lifted its FY2019 earnings by 14% given the company's strong growth during 1Q-3Q,
while Nomura revised its FY2020/21 earnings forecasts by +0.1%/+3%. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
01508 CHINA RE
Nominal 
0.540 0.000 (0.000%) Others
25/11/2019 14:08
{I-bank focus}Nomura lowers China Re (01508) to HK$1.34
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |