Citigroup: Raise target price of PRU (02378) to HK$150, maintain "buy" rating.

Citi released a research report stating that after advancing the valuation benchmark of PRU (02378) to the financial forecast for the year 2026 and incorporating the latest stock Beta value, the target price of PRU's London-listed shares was raised from 11.22 pounds to 14.25 pounds and its H share target price was raised from 118.1 Hong Kong dollars to 150 Hong Kong dollars; both were maintained a "buy" rating. PRU benefited from the growth in policy volume in Indonesia, Hong Kong, and Mainland China, while the group's profit margin at the group level remained stable. It is expected that based on the actual exchange rate, the forecasted new business profit for the 2025 fiscal year will increase by 12% year-on-year; the adjusted operating surplus for the insurance business is expected to grow steadily by 5% year-on-year; considering the share buyback, the expected growth in earnings per share is 11%. In terms of dividends, after considering the share buyback, Citi forecasts that the group's annual dividend per share will increase by 13% to 26.14 cents per share, also in line with management's guidance for a dividend per share growth of over 10% for the 2025 fiscal year.