CMB International: Expects Ping An Insurance's (02318) Second Quarter Operating Profit Growth Momentum to Continue, New Business Value Growth Rate Slows

CICC International released a research report stating that it maintains a positive outlook on the core profit growth prospects of Ping An Insurance (02318), maintaining its "buy" rating. The H-share target price based on SOTP valuation is HK$86, while the A-share target price is RMB 75. CICC International expects that Ping An Insurance's group attributable profit from operating activities (OPAT) will increase by 7.2% year-on-year in the first half of this year, with a 6.8% increase in operating profit in the second quarter, continuing its steady growth momentum. It is anticipated that the net profit will increase by 23% year-on-year in the first half of this year. In terms of segments, it is projected that operating profit for life insurance and health insurance in the first half of this year will increase by 3% year-on-year, with the new business contract service margin (NB CSM) expected to achieve double-digit growth in the middle; the comprehensive cost ratio (COR) for property insurance is estimated to be 95.1%, showing a 0.1 percentage point improvement year-on-year. The new business value in the first half of the year is expected to increase by 12% year-on-year, with a flat growth in the second quarter.