[ET Net News Agency, 5 February 2021] Daiwa Research lowered its target price for Ping
An Insurance (02318) to HK$92 from HK$95 and maintained its "hold" rating.
Ping An's management revised down further its 2021 guidance, saying that "reform is more
difficult than originally thought and won't see results this year". The research house,
hence, sees another year of weakness in 2021 despite a low base in 2020.
Ping An said it has CNY18bn equity and CNY36bn on-balance-sheet bond exposure to Fortune
Land (equalling 38% of its 2020 net profit in total), with no impairment made yet.
Daiwa revised down its 2021 VNB forecast by 8% due to its 2020 VNB miss and lower 2021
guidance. It also lowered its 2021-22E OPAT/net profit estimates by 1-4% due to weaker
residual margin releases and operating variances. (KL)