CMB International: Raises Ping An Insurance (02318) target price to 90 Hong Kong dollars, expecting last year's new business value to increase by nearly 42%

China Merchants International released a research report stating that it maintains a "buy" rating for Ping An Insurance (02318), raising its H-share target price from HK$75 to HK$90, corresponding to a 0.9 times intrinsic value-to-price ratio and a 1.24 times price-to-book ratio in 2026 forecasted stock price. Based on comparable basis, the bank expects Ping An Insurance's group net operating profit after tax to increase by 12% to RMB 136 billion in 2025, implying a year-on-year increase of about 46% in operating profit for the fourth quarter. The accelerated growth is mainly attributed to the strong growth in operating profit in life and health insurance business, a decrease in impairment losses in asset management business, and steady underwriting profit in property insurance business. The report also points out that Ping An Insurance continues to expand its bancassurance channels, currently covering approximately 19,000 non-Ping An Bank outlets. The bank believes that with the trend of household savers seeking stable returns, there is further potential for penetration in bancassurance channels. It is forecasted that Ping An Insurance's new business value (NBV) will increase by 41.7% and 17.7% year-on-year in 2025 and 2026, respectively.