[ET Net News Agency, 9 April 2020] Morgan Stanley lowered its target price for China
Taiping Insurance Holdings (CTIH)(00966) to HK$13 from HK$21 and maintained its
"equal-weight" rating.
The research house said CTIH's shares have corrected by 36% year-to-date, the worst
amongst Morgan's coverage, as the company underperformed peers in 2019 results with
earnings up only 31% and VNB (value of new business) down 19%.
Despite its expansionary strategy, the company did not outgrow peers last year,
disappointing investors who believe Taiping could grow faster than peers and eventually
become a top player in China.
The company has reignited its agency growth in 2020, up 20% year to March, helped by
China's soft labor market. Morgan expects Taiping to deliver flat VNB growth helped by a
low base and aggressive agency force expansion this year.
Despite being profitable and self-sustained, CTIH has the lowest dividend payout at only
12% in 2019 and a 3% yield, Morgan added. (KL)
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00966 CHINA TAIPING
Nominal 
6.490 +0.020 (+0.309%) Research Report
09/04/2020 12:03
{I-bank focus}Morgan chops China Taiping (00966) to HK$13
| Remark: | Real time quote last updated: 23/04/2024 15:22 |
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