Analyst Nika MA of CMB International Securities maintained a Buy rating on PICC Property & Casualty Co (PPCCF – Research Report), with a price target of HK$15.80.
Nika MA has given his Buy rating due to a combination of factors that highlight the positive outlook for PICC Property & Casualty Co. The company’s guidance for FY25E CoR is notably strong, with expectations for auto and non-auto CoR to be less than 96% and 99% respectively, surpassing previous years’ performance. This improvement in cost management is anticipated to drive better financial results.
Additionally, PICC P&C has demonstrated robust investment income growth, with a significant increase of 68% YoY, driven by fair value gains from equities. The company’s strategic allocation to high-yield stocks has further bolstered its financial position. The stock’s valuation, trading at 1.09x FY25E P/B with a projected ROE of 13.5% and a yield of 4.7%, supports the positive recommendation. These factors combined with an upward revision of EPS forecasts and a new target price of HK$15.8 reinforce the Buy rating.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$15.20 price target.