Nomura estimates that the net profit of China's financial insurance in 2024 may decrease 8% year over year to 8.75 billion yuan.
The Zhitong Finance App learned that Nomura released a research report saying that according to the “buy” rating for China Financial Insurance (02328), net profit may decrease 8% year on year to 8.75 billion yuan in the first quarter of 2024, the return on annualized shareholders' equity will decrease by 2.2 percentage points to 14.8% year on year, and the target price will be reduced by 2.2% to HK$12.23 from HK$12.51.
The bank expects China Financial Insurance's underwriting profit for the first quarter to fall 10.1% to RMB 4.157 billion, and the consolidated ratio for the first quarter will increase 0.6 percentage points to 96.3% year-on-year. The main reason is the recovery in traffic after China reopened its doors and the increase in loss rates caused by natural disasters such as snow during the Spring Festival. Furthermore, due to weak new vehicle sales and strict enforcement of fees and pricing regulations, the year-on-year growth rate of insurance revenue may slow from 5.1% in the fourth quarter of 2023 to 4.5% in the first quarter of fiscal year 2024.