[ET Net News Agency, 23 June 2020] Huatai Research initiated coverage on Ping An
Insurance (02318) with a "buy" rating and target price of HK$105.
Despite Ping An's rise to become a comprehensive financial company with commendable
technological prowess, The research house reminded investors to not forget that its
bedrock is still insurance, in particular life insurance. Comprising 37% of shareholder
capital, life insurance generated 67% of shareholder profit for Ping An in 2019.
Huatai believes Ping An's initiatives to upgrade its life insurance business, especially
improving agent quality, are critical to keeping its competitive edge over the next 3-5
years.
Huatai's estimated 2020 net profit to shareholders for Ping An is RMB145.8bn, implying a
2% decline. (KL)