Morgan Stanley updates CPIC risk-return assessment, target price lowered to 46 yuan, rating "Overweight"

Morgan Stanley published a research report, updating its risk-return assessment for China Pacific Insurance (02601.HK) after the announcement of its fiscal year 2025 results. The bank has lowered its forecast for after-tax operating profit (OPAT) for this year and next by less than 1%, but has reduced its forecast for after-tax net profit (NPAT) by 15% and 13% respectively during the same period, mainly considering market volatility factors. It believes that over time, the performance of after-tax net profit may align with operating profit. Since dividends are linked to after-tax operating profit, the impact on dividends is expected to be in single digits.

Taking all factors into account, the bank has lowered its target price for China Pacific Insurance by 5%, from HKD 48.2 to HKD 46; maintaining an "Overweight" rating