The Zhitong Finance App learned that Goldman Sachs released a research report stating that it lowered the target price for China Taibao (02601) from HK$20 to HK$19, with a “neutral” rating. The company's life insurance profit forecast for FY2024 to 2026 was lowered by 11% to 14% due to poor performance in FY2023 than market expectations and falling contract service profits, reducing overall earnings estimates from FY2024 to 2026 by 6% to 10%, which was partially offset by the increase in profits from the industrial insurance business.

The bank said it will reduce the value of China Taibao's new business from 2024 to 2026 by 10% to 13% because the revised risk discount rate and return on investment expectations had a negative impact of 5% and 9% on the intrinsic value of life insurance in fiscal 2023 and the value of the new business, respectively. The value of shareholders' equity in fiscal year 2023 was 5% higher than expected by the bank. The bank believes this is mainly due to the delay in confirming the increase in insurance contract liabilities, and believes this will gradually be reflected in the 2024 and 2026 fiscal years. As a result, the report slightly raised China Taibao's estimated book value for the 2024 fiscal year by 2%, and the book value for fiscal year 2025 and 2026 is expected to fall (expected to drop by about 1% to 2%).