[ET Net News Agency, 19 July 2019] Daiwa Research lifted its target price for PICC
Property and Casualty (02328) to HK$9.5 from HK$8.5 and maintained its "hold" rating.
The research house expects PICC P&C to report 1H net profit growth of 12%, underwriting
profit decline of 50%, and Combined Ratio (CoR) of 98.2%.
Daiwa noted that PICC P&C saw 4.1% YoY auto gross premium growth in 1H, dragged down by
tepid new car sales momentum and a declining premium per car. Industry-wide auto insurance
merely grew by 3.7% in 5-month 2019, with auto premium per car down 7%.
Daiwa revised up its 2019-20 net profit forecasts by 1-6% to factor in slightly higher
premium growth and tax revisions. (KL)