Jinwu Financial News | China Financial Insurance (02328) continued its previous decline. Today, it reversed the market and fell 4.4% to HK$9.34, with a turnover of HK$190 million.
Earlier, CICC stated that the company's 1Q24 premium income fell short of the bank's and market expectations, mainly due to the effects of freezing rain disasters, etc. Net profit reached $5.871 billion, or -38.3% year-on-year, lower than the bank's and market expectations. Mainly due to the impact of the disaster, the company's payouts exceeded expectations and investment performance fell short of expectations. Maintaining the “outperforming industry” rating, the target price is HK$11.8.
According to HSBC research, China's financial insurance underwriting and investment performance in the first quarter both declined, and the comprehensive cost ratio rose 2.2 percentage points year on year to 97.9% (meaning deterioration). Net profit for the first quarter fell 38% year-on-year, affected by a 36% year-on-year decline in investment income and a 48% year-on-year decline in underwriting profit. The bank maintained its “buy” rating for financial insurance, and the target price was reduced from HK$12 to HK$11.7.
According to UBS, financial insurance's first-quarter results fell short of expectations. Net profit after tax fell 38% year-on-year to RMB 5.9 billion, and the comprehensive ratio (CoR) rose slightly by 2.2 percentage points year-on-year to 97.9%. The bank believes that since the Group's performance falls short of expectations, there may be a negative reaction in the market, but since the adverse factors are temporary and financial insurance maintains steady guidance throughout the year, it believes there are still potential buying opportunities. The bank gave the Group a “buy” rating, with a target price of HK$13.