Goldman Sachs: CPIC issues zero-coupon CB with a target price of HKD 30.5

Goldman Sachs released a research report stating that CPIC announced the issuance of zero-coupon convertible bonds maturing in 2030 worth 15.556 billion yuan, believing this is an opportunity for the company to raise equity by taking advantage of the stock price increase and low-cost financing over the past 12 months. The firm assigned a "Neutral" rating to the company, with a target price of HKD 30.5 for H shares. The firm does not believe that CPIC's core insurance subsidiaries (Taibao Life Insurance and Taibao Property Insurance) have immediate capital needs, as their core solvency ratios were 136% and 196% respectively in the first half of the year. On the other hand, given the uncertainty in the direction of long-term bond yields, the firm believes that additional capital can provide the company with greater flexibility in capital management