JW Securities issued a research report stating that PICC P&C (02328) achieved insurance service income of 235.84 billion yuan in the first half of the year, a year-on-year increase of 5.1%, with a steady growth in business. Due to the performance of investment income in the first quarter, the company's net income attributable to the parent in the first half of the year was 18.49 billion yuan, a year-on-year decrease of 8.7%.
The bank pointed out that since the beginning of the year, the auto insurance business in the industry has further deepened the integration of reporting and underwriting, strengthened fee management, guided the industry to reduce fees, and benefited consumers. Non-auto insurance business maintained a good growth rate, with health insurance, liability insurance, and property insurance achieving insurance service income growth rates of 7.5%/8.4%/6.3% respectively.
The bank pointed out that the commercial model of property insurance has the 'dual-wheel drive' advantage of asset and liability ends, combined with the continued recovery of production and life, as well as the rise of electric vehicles and other opportunities, which is bullish for the company's business to continue to grow steadily. The bank maintains profit forecast, expecting the company's EPS for 2024 to 2026 to be 1.28/1.44/1.54 yuan per share, corresponding to PB ratios of 0.92/0.86/0.81, and maintains an 'outperform the market' rating.
