Daiwa Capital Markets: Raises PICC P&C target price to HKD 15.8 and upgrades rating to "Buy"
Daiwa Capital Markets released a research report stating that PICC P&C's profit growth in the first quarter of this year increased by 92.7% compared to the first quarter of last year, due to a significant improvement in the combined ratio (CoR) and a sharp rise in investment income. Total premiums increased by 3.7% year-on-year, with balanced growth in both auto and non-auto insurance. The company is confident in achieving its combined ratio target for this year, mainly supported by policies on non-auto insurance commissions and improvements in the combined ratio for electric vehicles. The company also aims for its total premiums to outperform GDP this year. The firm raised its earnings forecasts for the company for this year through 2027 by 7.5%, 6.8%, and 6.2%, upgrading the company's rating to "Buy" and raising the target price from HKD 14.7 to HKD 15.8
According to Zhitong Finance APP, Daiwa Capital Markets has released a research report stating that PICC P&C (02328) experienced a profit growth of 92.7% in the first quarter of this year, driven by a significant improvement in the combined ratio (CoR) and a sharp increase in investment income compared to the first quarter of last year. Total premiums increased by 3.7% year-on-year, with balanced growth in both auto and non-auto insurance. The company is confident in achieving its combined ratio target for this year, mainly supported by policies favoring non-auto insurance commissions and improvements in the combined ratio for electric vehicles. The company also aims for its total premiums to outperform GDP this year. The firm has raised its earnings forecasts for the company for the years 2023 to 2027 by 7.5%, 6.8%, and 6.2%, respectively, upgrading the company's rating to "Buy" and raising the target price from HKD 14.7 to HKD 15.8
