Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: March 19, 2026
Excerpt from China Galaxy International Securities (Hong Kong) Co., Limited report.
Report Summary
- Prudential PLC delivered FY25 results in line with or slightly above expectations, with new business profit (NBP) up 12% year-on-year, driven by strong performances in mainland China (+27% NBP) and Hong Kong (+12% NBP).
- Bancassurance was the standout distribution channel in FY25, with NBP growth of 27%, especially notable in China (+59% NBP in bancassurance), while the agency channel grew 4%.
- Singapore’s NBP growth lagged at 2%, underperforming industry trends, largely due to a slowdown in bancassurance sales in 2H25 despite robust local equity markets and a surge in investment-linked policy sales.
- The broker raised its target price to HK\$165, citing higher embedded value per share forecasts, and reiterated its Add rating, highlighting solid sector tailwinds and attractive capital management yields.
- Key risks include the impact of higher interest rates on investment returns and shareholder equity, and a potential focus by investors on valuation methods that might not close the valuation gap with peers like AIA.
- Prudential remains a top sector pick for its strong new business growth outlook, especially in Hong Kong and China, and its confidence in meeting 2027 financial targets, including a commitment to return over US\$7bn to shareholders during 2024-2027.
Above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International Securities website: https://www.chinastock.com.hk
