CMB International: It is expected that Ping An of China (02318) operating profit will continue to increase in the second quarter, and the growth rate of new business value will slow down

The Zhitong Finance App learned that CMB International released a research report stating that it maintains positive growth prospects for Ping An China (02318)'s core profit index and maintains its “buy” rating. The target price for H shares based on SOTP valuation is HK$86, and the target price for China Ping An (601318.SH) A shares is 75 yuan.

CMB International expects China Ping An Group's operating profit (OPAT) to increase 7.2% year on year in the first half of this year, and operating profit up 6.8% year on year in the next quarter, continuing the steady growth trend; net profit is expected to increase 23% year on year in the first half of this year. By sector, the operating profit of life insurance and health insurance for the first half of this year is expected to increase by 3% year on year, and the new business contract service margin (NB CSM) is expected to achieve medium double digit growth; the comprehensive cost ratio (COR) of financial insurance is expected to be 95.1%, an improvement of 0.1 percentage points over the previous year. The value of new business is expected to rise 12% year on year in the first half of the year and remain the same year on year in the next quarter.