China Financial Insurance (02328) fell nearly 5%. As of press release, it was down 4.73% to HK$9.66, with a turnover of HK$435 million.
The Zhitong Finance App learned that China Financial Insurance (02328) fell nearly 5%. As of press release, it fell 4.73% to HK$9.66, with a turnover of HK$435 million.
According to the news, the Nomura Research Report indicates that in the first quarter of 2024, the comprehensive ratio is expected to rise and return on investment to decline. Net profit may decrease 8% year over year to 8.75 billion yuan, annualized return on shareholders' equity will decrease 2.2 percentage points year on year to 14.8% year on year, and the target price will be lowered 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.