Merrill Lynch said it has raised its target price on China Life Insurance Co's Hong Kong-listed H-shares to 60.88 hkd from 43. 59 hkd. The brokerage maintained its ""buy"" call on the China insurer. ""China Life remains one of the top picks (in) the sector. The stock is likely to benefit from the strong A-share market, strong third quarter results and premium recovery"" in the fourth quarter, it said. Merrill Lynch noted that China Life is likely to post strong third-quarter results on the back of strong investments given the company only realized a small portion of its investments in the first half. It said the company had begun to see a pick-up in regular premiums in protection products due to the various campaigns its has launched. ""We expect premium growth (under Chinese accounting standards) to recover to around (the) low teens in fourth quarter 2007,"" it said, adding that China Life has been a laggard. Meanwhile, Merril Lynch also raised the target price on Ping An Insurance to 110.92 hkd from 73 hkd and maintained its ""neutral"" rating on the stock as it believes the recent rally in the stock has already priced in most of the good news. The brokerage gave a ""sell"" rating on PICC Property & Casualty and cut its target price to 9.0 hkd from 10.12 hkd as the current share price has detached itself from fundamentals after a gain of 308 pct year to date.
Based on TP of HK60.88, the ChLife-C4 will be at RM1.06 with zero premium attached.
ChLife is currentlt trading at 51.85 , ChLife-C4 is at 72 sen 11:52am 26 Oct07.
1 comment:
Agree on buy China life CW but is anobody realize what's the cheapest oversea CW available in Malaysia???
It's China Mobile-C1(CHMOBIL-C1).
trading at around 1.5% to 3% discount, it's far cheaper than any foreign CW.
furthermore recent good news relating china mobile such as Iphone, high profit, market expansion and more make most of the major investment bank upgrage china mobile's TP to around 180 which means the CW fair price will be around 90 cent. currently trading at 52 cent (14/11/07), expect at least 35% in return.
still, acording to goldman sachs, china mobile IPO propost to list in shanghai may be approved in 2008 first quarter.
if anybody remember what happened to CCB, Shenhua, petrochina's h-share prior to their shanghai listing day, you will know what i mean
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