The Zhitong Finance App learned that Bank of America Securities released a research report stating that the profit forecast for China Financial Insurance (02328) for this year and next two years remains largely unchanged. The target price was raised from HK$10.5 to HK$11.5 to maintain a “buy” rating because the company's growth prospects are stable, and a better payout ratio provides better defense in the current macro environment.

According to the report, China Financial Insurance's net profit last year was 24.6 billion yuan, down 16% year on year, mainly affected by weak investment income and disaster losses in the second half of the year. The core business remained stable. The dividend ratio increased from 40% to 44%, and the dividend per share increased by 2% to RMB 0.489, in line with market expectations. Under the best payout expectations, the dividend rate is around 6%, which is attractive to investors.