UBS: Gives China Pacific Insurance (02601) a "buy" rating with a target price of 33 Hong Kong dollars.

UBS has released a research report stating that it has upgraded China Pacific Insurance (02601) to a "buy" rating. After taking into account profit forecasts and adjusting growth targets, the company's net profit after tax for the years 2024 to 2026 is expected to increase by 4%, 3%, and 6% respectively. The target price remains at 33 Hong Kong dollars. The report mentions that China Pacific Insurance's net profit after tax last year increased by 55 to 70% year-on-year, which roughly meets market expectations. The strong profit growth is mainly attributed to the rebound in the stock market, especially in the third quarter. Based on the bank's expectation of a 5% increase in the MSCI China Index this year (compared to a 16% increase in 2014), it is expected that Taibao's net profit after tax this year will decrease year-on-year from a high base.