[ET Net News Agency, 7 December 2018] Nomura lowered its target price for China Pacific
(CPIC)(02601) to HK$40.01 from HK$47.23 and maintained its "buy" rating.
The research house noted that CPIC is targeting for FYP not to decline for 2019 open
year sales, while no products with 4.025% guaranteed return will be sold. It will launch
participating annuities with a universal rider for 2019 open year sales, which is largely
comparable to the main product during 2018 open year sales.
Nomura said CPIC's Life is likely to grow out of the trough in 2019 due to the low base
effect, and FYP growth is expected to reach 4.4% YoY in FY2019. Together with improved
margins, it forecast NBV growth of 11% YoY for FY2019. (KL)