Morgan Stanley lowers PICC GROUP (01339) target price to 7.7 Hong Kong dollars, rating "hold"

Morgan Stanley released a research report stating that it has lowered the target price of PICC GROUP (01339) H shares from 8.4 Hong Kong dollars to 7.7 Hong Kong dollars, with a "hold" rating, corresponding to a forecast P/B ratio of 0.9 times in 2026. The bank stated that after the group's performance in the 2025 fiscal year, it lowered the shareholder's net profit forecast for People's Insurance Group of China (PICC) for the life insurance business in 2026 and 2027 by 13.5% and 15.8%, mainly due to the life insurance business performance last year falling short of expectations, while the property and casualty insurance and health insurance business forecasts remained largely unchanged. The group's net profit attributable to shareholders and earnings per share forecasts were reduced by 6.4% and 6.7% at the group level. The bank believes that the property and casualty insurance business should maintain its market advantage, and the relaxation of regulation in non-auto insurance business will benefit underwriting performance. The health insurance business is growing strongly and is expected to undergo further revaluation. The life insurance business is catching up with the quality of its peers' business.