Movement Alert｜PICC Property and Casualty Rises 3.11% in Regular Trading, Broker Maintains Buy Rating Citing Valuation Back to Comfort Zone

On June 12, PICC Property and Casualty (02328.HK) rose 3.11% in regular trading, trading at HK$15.57/share, with turnover of HK$205 million.

On the news front, Zhongtai Securities recently issued a research report maintaining its Buy rating on PICC Property and Casualty, assigning a target PB multiple of 1.5x. The broker noted that the company's current PB has retreated to 0.91x (based on expected end-of-year book value), with a projected dividend yield of 5.7%, indicating valuation has returned to a comfort zone. The firm slightly raised its net profit forecasts for 2026-2028 to RMB 41.66 billion, RMB 44.20 billion, and RMB 46.69 billion respectively, citing updated underwriting profit and investment performance assumptions.

Additionally, the broader insurance sector has been rallying, with parent company PICC Group gaining 5.32% on the same day. The report highlighted that the company's motor insurance combined ratio stood at 93.5% in Q1, with new energy vehicle insurance already achieving underwriting profitability. Non-motor business is benefiting from regulatory fee alignment policies, expected to contribute approximately RMB 1.2 billion in underwriting profit for the full year. The company's proposed final dividend for FY2025 and formal approval of new president Zhang Daoming earlier this month further reinforced market confidence.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)