Bank of America Securities: Lowering the target price of PICC GROUP (01339) to HK$7.5, reiterating a "Buy" rating.

Bank of America Securities released a research report stating that PICC GROUP (01339) performed in line with expectations last year, with dividend per share growth surpassing earnings per share growth. Net profit for the 2025 fiscal year reached 46.2 billion RMB, a 10% year-on-year increase, mainly due to strong investment income. Despite concerns over reduced investment income and underwriting losses in the fourth quarter of last year, overall performance met expectations. Based on assumptions of deteriorating combined ratio and slowing growth expectations, the bank lowered its profit forecast for People's Insurance Company of China (PICC) for the 2026 to 2027 fiscal years by 4% to 5%. The target price was reduced from 7.8 Hong Kong dollars to 7.5 Hong Kong dollars, with a reaffirmation of a "buy" rating.