CICC: Maintains outperform industry rating for PRU (02378) with a target price of HKD 151.35.

CICC released a research report stating that PRU (02378) is currently trading at 1.0x/0.8x 26e/27e P/EV. The bank maintains its outperform industry rating unchanged, and based on the impact of the listing of its Indian joint venture company on profits, the bank has raised the company's 25e EPS by 1.8% to $1.06 and is optimistic about the development of the company's business in mainland China and the positive changes brought to the company's future operations by the new chairman of the board of directors. The bank has raised the company's 26e EPS by 9.5% to $1.24 and introduced a 27e EPS of $1.44 for the first time; maintaining the target price at HK$151.35, corresponding to 1.2x/1.0x 26e/27e P/EV, representing a 24% upside potential from the current stock price. Key points from CICC: Company Update On December 19, 2025, PRU announced that its subsidiary ICICI Prudential Asset Management Company Limited, a joint venture with India Industrial Credit Investment Bank, completed its initial public offering (IPO) on the National Stock Exchange of India. PRU stated that the net proceeds of this offering (including previous pre-IPO financing) is approximately $1.4 billion, intended to enhance shareholder returns. New Share Repurchase Policy Announcement On January 6, 2026, the company announced a new $1.2 billion share repurchase plan, to be completed by December 18th of this year (with about $700 million coming from the proceeds of this IPO), continuing its $2 billion share repurchase plan launched in June 2024 (completed in 2025). The bank believes that with ample free cash flow and good business drivers, the company will continue to focus on enhancing shareholder returns. Monitoring the strategic direction after the change of the independent chairman of the board The company previously announced that Sir Douglas Flint will take over as non-executive director and chairman of the board in May 2026. He has served as chairman of HSBC Group, Aberdeen Group plc, and IP Group plc, and has extensive experience in wealth management and asset management. It is recommended to pay attention to his strategic direction, financial goals, and potential changes in investor expectations after he takes office. Reiterating optimism about the development of the business in mainland China The company's new business profit (NBP) in 9M25 increased by +13% year-on-year at constant exchange rates (CER), with double-digit growth in NBP in China Hong Kong and China mainland in 3Q25. The bank reiterates its previous judgment that the insurance industry in mainland China is entering a golden development period, and with the background of "moving deposits" and upgrading customer groups, the company's business in mainland China is expected to continue to maintain rapid growth. Risk warning: New single premiums grow slower than expected; significant fluctuations in US bond interest rates and capital markets; overseas financial risks.