PICC Property & Casualty 2328

[winston]

Not vested

DJ MARKET TALK: PICC +4.7% Pre-Open; Citi Ups Target To HK$10.30

0952 [Dow Jones] At pre-open PICC Property & Casualty (2328.HK) indicates +4.7% at HK$8.55, as 1H results exceed analysts' lofty expectations, with 1H net profit of CNY2.65 billion almost matching full-year earnings forecast of CNY2.82 billion pegged by Thomson Reuters.

Citigroup says 1H results "robust," recovery "should have legs."

Raises price target to HK$10.30 vs HK$9.40 on higher earnings forecasts to reflect higher underwriting profit, investment income; keeps Buy call.

Says while PICC best-performing stock in sector year-to-date, "we maintain our long-held positive stance on PICC, as we believe the P&C recovery should have legs & PICC is more geared to potential A-share market recovery than other China insurers."


Source: Dow Jones Newswire

[winston]

Not vested. Even the "experts" cant agree amongst themselves ...

DJ MARKET TALK: PICC +6.6% Post-1H; CS Keeps Underperform

1035 [Dow Jones] PICC (2328.HK) +6.6% at HK$8.71 after earlier hitting a 52-week high at HK$8.88 after consensus-smashing 1H results.

Near-term profit-taking likely, especially given property & casualty insurer's outperformance vs life insurers.

Credit Suisse says key feature of 1H results is strength in motor portfolio profitability (75% of premiums), which now posts underwriting profits for 2 consecutive halves; house increases margin expectations for motor, which leads to about 50% EPS upgrades.

Also raises PICC target to HK$6.50 from HK$5.00, but keeps Underperform call, given industry stays very competitive, product issues remain.

Volume spikes to HK$295.8 million, making stock 3rd most heavily traded.


Source: Dow Jones Newswire

[winston]

Not vested. From Phillips:-


Risk

The growth rate of premium incomes is lower than our estimation;
The loss on investments of the Group due to the large volatility of the stock market.


Valuation

In all, insurance businesses of PICC increased strongly. The profits of PICC would increase largely due to the rise of premium incomes although investment gains of the Group would decrease obviously in 2010 compared with 2009.

We are still optimizing on the performance of PICC in 2010 and 2011.

We increase the 12-month target price of PICC to HK$ 13.05, around 20% higher than its latest closing price, equivalent to 25.8xP/E and 4.3xP/B in 2011 respectively. Maintain PICC on “Buy” rating.


Source:

[winston]

Weren't some of the "expert" analysts asking you to buy recently ?

DJ MARKET TALK: PICC Off 3.2%; First Premium Drop Since Dec 2006

1203 [Dow Jones] PICC Property & Casualty (2328.HK) is down 3.2% at HK$9.41 and is the worst-performing H-share index member after China's largest non-life insurer says its January premium income edged down 1% to CNY18.33 billion.

Credit Suisse notes this is the first month of decline since December 2006; the house says while it expects PICC's near-term profitability will remain strong given enhanced regulatory focus on solvency, commissions and pricing, the key issue facing PICC "remains the capital position," which is both too low in absolute terms and with too much gearing.

The house keeps PICC's target price at HK$10.00, equating to 16X P/E and 3.0X P/B, and keeps the stock at Underperform.

"Whilst we are positive on PICC's medium-term prospects, we would wait for the recapitalization (restructuring) and further growth data."


Source: Dow Jones Newswire

[winston]

Not vested. So the parent & child will both be listed. Do you understand ?

DJ China Pension Fund Buys 11% Stake In PICC For $1.5 Bln

BEIJING (Dow Jones)--China's national pension fund paid CNY10 billion ($1.5 billion) for an 11% stake in the People's Insurance Co. (Group) of China Ltd., known as PICC, ahead of the insurer's planned initial public offering, PICC said in a statement Tuesday.

PICC, previously 100%-owned by China's Ministry of Finance, will list in Shanghai and Hong Kong, the statement said, without giving the timing or the size of the offering.

'The introduction of the (government's) National Council for Social Security Fund moved the PICC a big step closer to the planned IPO,' the statement said.

PICC has met the requirements to conduct the offering but still needs regulatory approval, the insurance conglomerate said, adding the company will 'prudently' time the IPO.

PICC, established in 1949 is the parent of China's largest property insurer PICC Property & Casualty Co. (2328.HK). Its life-insurance business ranks the sixth in the Chinese insurance market in terms of premiums.


Source: Dow Jones Newswires

[winston]

DJ MARKET TALK: PICC Down 4.2%; Competition, Econ Slowdown Eyed - CPY

1458 [Dow Jones] PICC (2328.HK) is down 4.2% at HK$9.07, experiencing some consolidation after rising 21.1% over the past two trading sessions, and is also weighed by the overall market weakness (the HSI is down 0.6% after rising 9.0% over the past two sessions).

Core Pacific-Yamaichi says intensifying competition and an economic slowdown will be the two major factors that could weigh on PICC's earnings growth ahead.

"We expect the ongoing weakness in equity markets may weigh on earnings in the near term," it says.

The house is also concerned about PICC's outlook, as China's economic slowdown may drag down gross premium growth. It cuts its target to HK$10.70 from HK$14.30, after cutting its FY12 earnings forecast to CNY10.07 billion from CNY11.71 billion. It keeps the stock at Hold.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: PICC Likely To Achieve Strong FY Profit - GS

1520 [Dow Jones] STOCK CALL: Goldman Sachs believes PICC (2328.HK) is likely to achieve strong underwriting profits in 2011, based on a series of measures to enhance claim centralization/customer segmentation.

However, due to potential auto insurance pricing deregulation and changes in clauses to be launched since mid-2012, it expects PICC's auto insurance may near peak profitability by 1H12.

The house keeps the stock at Neutral with a target of HK$13.50 (2.77X FY12 P/B). It believes PICC's nine months to September premium growth of 12.0% on-year was in line with the house's expectations for FY11 premium growth of 13.0%. The stock is down 9.8% at HK$9.72.

Source: Dow Jones Newswire

[winston]

Really ? Have you all seen any P&C company who has managed to achieve "Strong Underwriting Profits" ?

DJ MARKET TALK: PICC To Achieve Strong FY11 Underwriting Profit - GS

1126 [Dow Jones] STOCK CALL: Goldman Sachs believes PICC (2328.HK) is likely to achieve strong underwriting profitability in 2011, based on a series of measures to enhance claim centralization/customer segmentation.

However, due to potential auto insurance pricing deregulation and clause changes, which could enlarge insurance liabilities starting from 1H12, it expects PICC's auto insurance business could be near peak profitability by 1H12.

It keeps the stock at Neutral with a HK$13.50 target, based on 2.77X 2012 P/B. The stock is down 0.3% at HK$11.62.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: CS Keeps PICC P&C At Outperform, Eyes HK$15.00

0915 [Dow Jones] STOCK CALL: Credit Suisse keeps PICC Property & Casualty (2328.HK) at Outperform with an unchanged target price of HK$15.00;

"We remain of the view that the market has over-reacted to the impact of the proposed pricing reforms and recent weaker 2H 2011 result for PICC P&C."

The house highlights that the regulator is taking its time to introduce the new regime to ensure that there are no unintended consequences, as status quo is maintained for the first phase, and PICC's loss ratios were stable in 2H11, with weakness arising mainly from the expense line.

CS says PICC is trading at just 9X FY12 earnings, which it deems overestimates the earnings risk from the new auto pricing regime.

The stock is quoted 1.0% lower at HK$10.14 at pre-open.


Source: Dow Jones Newswire

[winston]

not vested

PICC P&C (02328.HK) Expects 1H Net Profit to Jump Approx. 85%

PICC P&C (02328.HK) +0.060 (+0.383%) Short selling $45.93M; Ratio 18.287% announced that based on the preliminary estimates, the net profit for the first half of 2015 recorded an approximately 85% increase from a year earlier, as benefited from the stable business growth and a significant increase in total investment income of the company on a yearly basis.

Source: AAStocks Financial News