According to the Zhitong Finance APP, Bank of America Securities has released a research report reaffirming its "buy" rating on PICC Group (01339). Due to the higher investment income assumptions and expected property insurance revenue for the 2024 fiscal year, the profit forecast for the 2024 fiscal year has been raised by 30%, and the profit forecasts for the 2025 to 2026 fiscal years have been raised by 1% to 2%. The target price has been raised from HKD 3.6 to HKD 3.7.

The report states that PICC Group's performance in the first half of this year has shown steady growth, and it has distributed interim dividends for the first time. The bank predicts that the dividend payout ratio for the 2024 fiscal year will stabilize at 30%, and its dividend per share growth will be consistent with profit growth. The bank points out that as the risk of catastrophic losses gradually decreases, PICC will be able to maintain its comprehensive cost ratio for auto insurance below 97% and its comprehensive cost ratio for non-auto insurance below 100%.