[ET Net News Agency, 12 December 2018] Daiwa Research lowered its target price for
China Life Insurance (02628) to HK$23 from HK$25 and maintained its "buy" rating.
The research house said China Life kicked off its jumpstart presales campaign in late
November and has now almost concluded its presales. Daiwa noted that investor sentiment
was negative on it launching 4% guaranteed rate (GR) products.
Daiwa estimated the actual interest cost of this product is only 2.5%, or 3.5% including
mortality assumptions, thus providing China Life with a sufficient positive VNB margin.
The research house expects China Life to see a high-teen YoY decline in 2018 VNB, but
double-digit YoY growth in 1Q 2019 VNB. Hence, Daiwa cut its 2018-20 net profit forecasts
by 9-20% to reflect its lower investment income forecasts. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02628 CHINA LIFE
Nominal 
10.120 +0.080 (+0.797%) Others
12/12/2018 11:02
[I-bank focus]Daiwa cuts China Life (02628) to HK$23
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