[ET Net News Agency, 20 April 2018] Nomura lowered its target price for China Pacific
(CPIC)(02601) to HK$52.28 from HK$52.33, and reiterated its "buy" rating.
The research house lowered its FY2018 NBV growth forecast by 6pp to 7% as it believes 1Q
will be the worst quarter of new business growth in the past four years. It also lowered
its EV and NBV by 4% each to factor in the negative impact from the likely tightening
regulations for capital requirement. Nomura also accounted for RMB appreciation.
The research house cut its P&C business earnings by 11-18% for FY2018-19, mainly due to
the surprise additional tax, but maintain our view of a largely stabilising combined ratio
of 99.1% in FY2018-20. (KL)