CMB International: Raise Ping An Insurance (02318) target price to HK$75, third-quarter profit exceeds expectations.

CMB International released a research report stating that considering the improvement in investment income, the reduction of negative impacts from asset management business, and the enhanced synergies within the group, the earnings per share forecast for Ping An Insurance (02318) for 2025 to 2027 has been raised by 9%, 4%, and 5% respectively, to 8 yuan, 8.3 yuan, and 9.2 yuan Chinese currency. The target price has been raised from 71 Hong Kong dollars to 75 Hong Kong dollars, reaffirming a "buy" rating. Ping An Insurance's net profit in the first three quarters increased by 11.5% year-on-year to 133 billion Chinese currency, and the growth in the third quarter reached 45.4%, exceeding the bank's expectation of 129 billion. Excluding one-time non-operating factors, the after-tax net profit growth will be even stronger, with a year-on-year increase of 27% and 82% in the first three quarters and the third quarter respectively. The new business value (NBV) in the first three quarters increased by 46.2% to 35.7 billion Chinese currency, while in the third quarter it increased by 58.3%, benefiting from the strong growth in agency channels and bank insurance channels.