[ET Net News Agency, 11 July 2019] J.P. Morgan lifted its target price for PICC Group
(01339) to HK$3.9 from HK$3.6 and upgraded its rating to "overweight" from "neutral" the
back of faster product mix enhancement.
The research house expects the company to deliver strong new business value growth of
15% in 19 on the back of 2% point product margin enhancement. Also, it believes that
China's non-life underwriting cycle deterioration is bottoming out & sees the potential
for market share gains (i.e., economies of scale) and underwriting margin improvement in
its non-life business in the next couple of quarters.
JPM expects PICC to deliver net profit decline of 14% in 1H on the back of a decline in
premiums & weak non-life underwriting cycle. It also expects 1H new business value to grow
by 15% on the back of 2% point enhancement in product margin.
The research house revised its FY2019/20/21 net profit estimates by -15%/-6%/-2% on the
back of weaker investment income and poor non-life underwriting performance. (KL)
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01339 PICC GROUP
Nominal 
2.550 -0.060 (-2.299%) Research Report
11/07/2019 17:54
[I-bank focus]JP Morgan lifts PICC Group (01339) to HK$3.9
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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