Bank of America Securities: Expects PICC P&C's annual investment income to improve, target price raised to HKD 20.9
Bank of America Securities released a research report stating that PICC P&C's net profit for the first three quarters of 2025 reached RMB 40.3 billion, a year-on-year increase of 51%, exceeding expectations. Although investment income was strong in the third quarter of last year, there was a significant increase in catastrophe losses due to a typhoon, leading to a substantial decline in underwriting profit, resulting in a low base. Based on improved investment return forecasts, Bank of America Securities raised its profit forecast for P&C insurance in 2025 by 6%, and the profit forecasts for 2026 and 2027 by 1% to 2%. The target price was raised from HKD 20.3 to HKD 20.9, reiterating a "Buy" rating. It believes that the positive performance in the third quarter was mainly benefited from the rise in the Chinese stock market during the period and the company's increased investment allocation in stocks, expecting that with active and stable market trading, annual investment returns will achieve year-on-year improvement
According to the Zhitong Finance APP, Bank of America Securities released a research report stating that PICC P&C (02328) achieved a net profit of RMB 40.3 billion in the first three quarters of 2025, a year-on-year increase of 51%, exceeding expectations. Although investment income was strong in the third quarter of last year, there was a significant increase in catastrophe losses due to typhoons, leading to a substantial decline in underwriting profit and resulting in a low base. Based on improved investment return forecasts, Bank of America Securities raised the profit forecast for P&C insurance in 2025 by 6%, and the profit forecasts for 2026 and 2027 by 1% to 2%. The target price was raised from HKD 20.3 to HKD 20.9, reiterating a "Buy" rating. It believes that the positive performance in the third quarter was mainly benefited from the rise in the Chinese stock market during the period and the company's increased allocation to stock investments. It is expected that with active and stable market trading, the annual investment income will achieve year-on-year improvement
