[ET Net News Agency, 29 April 2020] Nomura raised its target price for New China Life
(NCI)(01336) to HK$41.53 from HK$41.32 and maintained its "buy" rating.
The research house said NCI's 1Q posted strong growth in both premium and earnings. Net
profit up 38% to CNY4.6bn, thanks to an improved total investment return as reported.
Individual business channel long-term business FYP (first-year premium) up 19% against the
COVID-19 impact.
In addition, net assets were up 3.8% QoQ to CNY88bn, with annualized RoE (Return on
equity) improving by 2.3pp QoQ to 21.6% for 1Q. Nomura maintained its FY2020 NBV (new
business value) growth forecast at 7%. But it increased its FY2020-22 earnings forecasts
by 29%/34%/36% and now expects it to decrease by 11% in FY2020. (KL)