The analyst rating of "Buy" for PING AN (02318.HK) by CMBI is based on several key factors:
1. Target Price Increase: CMBI raised its target price for PING AN's H-shares from $75 to $90, indicating a positive outlook on the stock's future performance.
2. Valuation Metrics: The new target price corresponds to a forecasted price-to-embedded value (PEV) ratio of approximately 0.9x and a price-to-book (PB) ratio of 1.24x for 2026, suggesting that the stock is undervalued relative to its expected growth.
3. Bancassurance Channel Expansion: PING AN is expanding its bancassurance channels, which currently cover about 19,000 non-Ping An Bank outlets. The report highlights the potential for further penetration in this area, especially as household depositors seek solid returns.
4. Growth in New Business Value: The expected growth in PING AN's new business value (NBV) by 41.7% in 2025 and 17.7% in 2026 indicates strong future performance and profitability.
These factors collectively support the "Buy" rating, reflecting confidence in PING AN's growth prospects and market position.
