not vested
<Research Report>UBS Cuts PING AN (02318.HK) Target to $48.41; Rated Buy
UBS, in its report, said the share price of PING AN (02318.HK) has not fully reflected its strong new business value (NBV) growth outlook.
Ping An should continue to deliver healthy NBV growth and maintain strong underwriting profit for its non-life unit over the next few years.
UBS expected Ping An's distribution channel upgrade to translate to solid topline growth in 2016, and forecasted the insurer's 2016 NBV growth will remain above the 15-20% long-term trend.
For the property and casualty insurance (P&C) segment, Ping An can maintain industry-leading results.
UBS believed that Ping An's overall credit risk exposure is under strict control, as its proportion of financing trusts and real estate financing trusts have been also reduced, so as to reduce its credit risk exposure .
For the Lufax platform, the proportion of P2P trading?usually viewed as a higher-risk business?has decreased from 10.4% to 3.4% of total transaction volume at end-2015.
UBS trimmed the 2016/2017/2018 NPAT estimates by 2.6%/4.5%/3.3% to reflect the estimates of combined ratios to 95.7%/96.2%/96.5%; 2016/2017/2018 investment yield assumptions are lowered to 5.0%/4.8%/4.8%.
UBS forecast on NBV growth of 2016/2017/2018 were 20%/15%/12%.
The target price was lowered from $59.13 to $48.41 and the rating was maintained at Buy.
Source: AAStocks Financial News