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<Research>JPM Downgrades PICC P&C (02328.HK) to Underweight, Adjusts TPs for CN Insurers
Recommend 53 Positive 81 Negative 39 |
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JPMorgan released a research report suggesting to increase stake in life insurers after interim results announcement. Even though life insurers are recovering from a major valuation slump, their 1H24 results reflect that the industry's risk-to-reward ratio is improving, with CHINA LIFE (02628.HK) and CPIC (02601.HK) being its top picks, JPMorgan said. JPMorgan downgraded PICC P&C (02328.HK) from Neutral to Underweight, and trimmed its target price to $7.3 from $9.5, mainly due to less favorable underwriting seasonality during 2H24 and increasing reinvestment risk amid lower bond yield. In addition, PING AN (02318.HK) is one of the insurers with improving balance sheet risk returns. However, due to its complex capital distribution, JPMorgan listed PING AN at the back of its pecking order. JPMorgan's order of preference among Chinese insurers is CHINA LIFE, CPIC, PING AN, NCI (01336.HK), PICC GROUP (01339.HK) and PICC P&C. Meanwhile, the broker also adjusted its target prices for Chinese insurers. JPMorgan raised its target prices for CHINA LIFE/ CPIC from $15/ $23.6 to $17/ $29, both of which were rated at Overweight. The broker added its target price for PICC GROUP by $0.1 to $2.6, with rating at Neutral. The broker chopped its target price for PING AN from $77 to $67, with rating at Overweight. AAStocks Financial News |
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