[ET Net News Agency, 4 February 2021] UBS Global Research cut its target price for Ping
An Insurance (02318) to HK$115 from HK$117 and maintained its "buy" rating.
The research house said Ping An's 2020 results are broadly in line with market
expectations, with an underlying new business value (NBV) decline of 33% and OPAT
(operating profit after tax) growth of 5%.
UBS believes prioritizing resources for the jump start campaign has disrupted 4Q 2020
sales booking but should support 1Q 2021. The dividend of Rmb2.20/share is largely
consistent with OPAT growth.
UBS believes the current valuation of only 1.0x 2021 P/EV has well priced in Covid-19
impact. It expects Ping AN's NBV growth to rebound to 12% for 2021, supported by the
recovery in agency activities and consumer appetite for protection products. (KL)