Lates News

DBS has released a research report indicating that the net profit of China Pacific's main subsidiary, Pacific Life, in the first quarter of this year increased by 87.5% year-on-year to 3 billion yuan, while investment income and fair value changes decreased by 93.3% year-on-year, leading to a 18.5% drop in pre-tax profit. Total premium income for the period increased by 1%; considering the lower interest rates since the third quarter of last year and the optimization of the group's channel costs, the bank expects the new business value (VNB) to grow by more than 10% year-on-year. The bank has raised its net profit forecast for China Pacific for the fiscal years 2025 and 2026 by 3.3% and 4.4% respectively to reflect reduced tax expenses; considering the continuous low interest rates affecting the company's intrinsic value, the target price has been lowered from 18 HKD to 17 HKD, but the "buy" rating has been reiterated due to the effective transformation of the company's product portfolio and the stable VNB outlook.