[ET Net News Agency, 4 July 2018] Nomura lowered its target price for PICC Property &
Casualty (02328) to HK$12.6 from HK$18.89 to account for the recent stock split, and
retained its "buy" rating.
The research house advised that investors further accumulate PICC P&C as it thinks the
current share price, trading at 1.0x P/B, already factors in the bottom case of fully
pricing deregulation, wherein PICC's bottom ROE is expected to be 11.1%, with combined
ratio at 99.7% (including additional tax due to extra commission), as per Nomura's
estimates.
Furthermore, the real market situation could see an improvement, given current tight
regulations and gradual reform progress, Nomura added. (KL)