The Zhitong Finance App learned that Goldman Sachs released a research report stating that it will keep the target price of the China People's Insurance Group (01339) unchanged at HK$3.6 and lower the shareholders' equity forecast for the 2024-26 fiscal year by 2%-4%, mainly reflecting a decline in net profit. It also raised the value forecast for the new life and health business for the 2024-26 fiscal year by 17%-19% to maintain the “buy” rating.
The bank updated its forecast after the 2023 results, showing that last year's life and health insurance profits were lower than expected, indicating that the fourth quarter was more sensitive to changes in interest rates and investment markets than in the previous nine months. As a result, the bank drastically lowered the net profit forecast for life and health insurance for the 2024-26 fiscal year and reduced the net profit for the 2024-26 fiscal year by 10%-13%.