[ET Net News Agency, 1 February 2021] BOCI Research lifted its target price for PICC
Group (01339) to HK$3.6 from HK$3.5 due to the recent RMB appreciation and maintained its
"buy" rating.
The research house said PICC Life and PICC Health recorded first-year premium (FYP)
growth of -6% and 1% respectively in 4Q 2020 (3Q: -9% and -1%), on the annualised premium
equivalent basis, primarily driven by strong growth of single premiums and short-term
insurance premiums.
With a higher mix of single premiums in total FYP for PICC Life, BOCI expects the new
business value (NBV) to remain flat in FY2020 due to lower NBV margins and expects the NBV
growth to start improving from FY2021 onwards. (KL)