Glonghui, October 27 | Goldman Sachs published a report to lower the target price of Prudential H shares from HK$189 to HK$178, maintaining the “buy” rating and continuing the “buy with confidence” list. The bank lowered Prudential's operating profit forecast for this year to 2025 by 0% to 4% and net profit forecast by 0% to 3%. At the same time, it also lowered its new business profit forecast by 5% to 9% for the same period, mainly reflecting rising debt interest rates. The bank predicts that Prudential's new insurance policy sales for the third quarter will maintain strong momentum in the first half of the year, driven by mainland travelers. It is believed that sales from mainland travelers will increase overall new insurance policy sales by more than 40% in the quarter. However, there is a negative relationship between the profit margin of Hong Kong's new insurance policy and the yield of US long-term bonds. Based on the 80 basis point increase in US ten-year treasury bond yields last quarter and 100 basis points in the second half of the year, the full-year Hong Kong new business profit margin forecast was lowered to 57%, down from 65% in the first half of the year and 74% for the full year of last year. The bank will pay attention to management's views on the impact of higher interest rates on the profit margins of new insurance policies.