[ET Net News Agency, 5 September 2019] Daiwa Research lifted its target price for PICC
Property and Casualty (02328) to HK$10.2 from HK$9.5 and upgraded its rating to
"outperform" from "hold".
The research house is turning positive on PICC P&C for the first time since February
2015 as it expects previously overshadowing factors to be lifted from 2H.
Daiwa expects net earned premium (NEP) recognition over gross premium (GWP) to bottom
out in 3Q due to a low NEP base in 3Q on a commission surge, and unearned premium back
then to be fully amortised after a 12-month period.
Daiwa revised up its 2019-21 net profit forecasts by 2-6% on better profitability
assumptions. (KL)