[ET Net News Agency, 17 January 2020] Nomura raised its target price for China Taiping
(00966) to HK$27.25 from HK$26.98 and maintained its "buy" rating.
The research house lifted its FY2019 NBV (new business value) growth forecast to -4%
from -5%, due to a change in business pace last year, after changes in management. Nomura
thinks the company made increased efforts in driving 2H 2019 sales performance, likely to
partially offset the NBV contraction in 1H 2019.
As a result of the changing business pace in FY2019, a weak 2020 open-year pre-sales
performance with double-digit new business premium contraction is expected for China
Taiping; and Nomura expects new business sales to catch up after the pre-sales.
Hence, Nomura lowered its FY2020 NBV growth forecasts to 7% from 8%, but kept its FY2021
NBV growth forecast unchanged at 8%. (KL)