CITIC Securities: Maintains Buy rating on China Property & Casualty Insurance (02328.HK), with improving performance gathering momentum.

According to the Caijing APP, Zhongtai Securities released a research report stating that they have slightly raised their net profit forecasts for China Taiping Insurance (02328.HK) for the years 2026 to 2028 to 416.60 billion, 442.04 billion, and 466.91 billion respectively (previously forecasted as 413.12 billion, 438.91 billion, and 463.36 billion, updating assumptions for underwriting profits and investment performance). The year-on-year growth rates are 3.2%, 6.1%, and 5.6%, with corresponding ROEs of 13.7%, 13.3%, and 13.0%. The firm used the PB-ROE valuation framework system, based on the adjusted Gordon growth model, where PB=(ROE-g)/(r-g). They assumed a long-term ROE of 12%, sustained long-term growth rate of 1.5%, equity cost of 8.5%, and a target PB multiple of 1.5x, maintaining a buy rating.