Broker: China Galaxy International
Date of Report: April 29, 2026
Excerpt from China Galaxy International report.
Report Summary
- Stock Focus: Ping An Insurance (2318 HK)
- Action: ADD (Buy) – Rating unchanged
- Target Price: HK\$82.00
- Current Price: HK\$60.05 (as of report date)
- Upside Potential: 37%
- Key Idea: Ping An Insurance delivered slightly better-than-expected 1Q26 results. Group operating profit after tax (OPAT) rose 6% YoY, and combined ratio of 96.8% was 0.5 percentage points lower than expected. New business value (NBV) grew 21% YoY, driven by 39% growth in annualised new premiums, offset by NBV margin contraction of 18% YoY due to actuarial assumption changes and a higher mix of participating products.
- Highlights:
- Management confident in continued OPAT and NBV recovery.
- Strong bancassurance channel performance – NBV mix from bancassurance and community finance up 6.8 percentage points YoY.
- Maintains sector leadership in bancassurance growth and margins vs. peers.
- Key downside risks: lower bond yields, weak investment returns.
- Implications: The report reiterates Ping An as the top domestic insurer pick, backed by solid NBV growth, strong bancassurance momentum, and expected margin improvement. The HK\$82 TP is based on a sum-of-the-parts valuation and implies significant upside for investors.
above is an excerpt from a report by China Galaxy International. Clients of China Galaxy International can be the first to access the full report from the China Galaxy International website : https://www.chinastock.com.hk
