DBS released a research report stating that China Taiping (00966.HK) new business value (VNB) increased by 86.3% in the first half of the 2024 fiscal year; new business contract service margin (CSM) increased by 28.3% year-on-year to 12 billion RMB; embedded value (EV) increased by 9.5% year-on-year. The bank believes that with the lower base in the second half of the 2023 fiscal year, strong growth momentum is expected to continue until the second half of the 2024 fiscal year.

DBS mentioned that Taiping's property and casualty insurance, as well as reinsurance business, have significantly improved in quality, mainly due to quality growth in non-automated areas, a profit-driven strategy, and good control of major natural catastrophe (NATCAT) risks in the reinsurance field. The bank also pointed out that Taiping's focus on quality and profitability will continue.

In addition, DBS raised Taiping's net profit forecast for the 2024 and 2025 fiscal years by 10% and 1% respectively, while also raising the forecast for the 2026 fiscal year. As for Taiping's VNB forecast, it will remain unchanged. Taking into account these factors, the bank raised Taiping's target price from 12.3 Hong Kong dollars to 18 Hong Kong dollars, reiterating a 'buy' rating.