＜Research＞BofAS Predicts PICC P&C (02328.HK) Interim NP to Plunge 25%, Maintains Buy Rating

　　BofA Securities has released a report, anticipating that PICC P&C (02328.HK) +0.140 (+1.449%) Short selling $8.74M; Ratio 4.603% will experience a 25% decline in its net profit in 1H24, better than the 38% decline in 1Q24, but still a mild drop in profits in 2Q24. Market expectations for PICC P&C's results in 1H24 are not high, and most investors are focusing on whether 3Q24 would be a quarter of rebounds with a low base. The broker expects PICC P&C to record positive earnings in 3Q24 if catastrophe losses are smaller against 3Q23, and to record positive earnings in 9M24 if catastrophe losses are significantly lower than in 3Q23.

　　BofA Securities expects PICC P&Cs combined ratio to be at 97.1% in 1H24, lower than 97.9% in 1Q24. The broker also expects that with the change of its investment strategy, PICC P&C will record lower investment return in 1H24 as compared to the same period last year.

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　　In the light of PICC P&C's attractive dividend and strength in cost control, BofA Securities reiterated the Buy rating with a TP of $11.5.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-22 16:25.)

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