[ET Net News Agency, 7 July 2020] Daiwa Research raised its target price for New China
Life Insurance (NCI)(01336) to HK$35 from HK$26 and upgraded its rating to "outperform"
from "hold".
The research house sees NCI as a key beneficiary of the recent A-share rally and New
Money Yield (NMY, the NMY Index reflects the industry-wide prevailing new investment
return on a monthly basis) recovery. In addition to the incremental direct benefits to EV
(embedded value) and net profit, Daiwa highlighted that NMY recovery eases previous market
concerns on NCI, especially as it has higher guarantee rates than some peers.
Daiwa estimated that every 1% rise in the A-share stock market leads to 0.3% higher EV,
0.8% higher book value, and 8% higher net profit for NCI (2020).
Daiwa revised up its 2020-22 EV and earnings by 1-2% and 1-37%, respectively, mainly due
to the recent A-share market rally and helped by near-term stabilisation of interest
rates. (KL)
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01336 NCI
Nominal 
13.580 +0.480 (+3.664%) Others
07/07/2020 10:44
{I-bank focus}Daiwa ups NCI (01336) to HK$35 & "outperform"
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
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