UBS: A “buy” rating for Ping An of China (02318) is expected to increase 20% year-on-year operating profit after tax in the third quarter

The Zhitong Finance App learned that UBS published a report saying that the beneficiary asset management sector continues to recover. It is expected that China Ping An (02318)'s after-tax operating profit growth will accelerate in the fourth quarter. The group's after-tax operating profit for the whole year will rise 10% year-on-year, and the annual dividend is expected to be 2.44 yuan per share. Based on the price of Ping An H shares in China, it is equivalent to a 5.6% dividend rate. It was rated “buy” for H shares, with a target price of HK$59.

According to reports, Ping An of China will announce the results for the first three quarters on the 21st of this month. UBS predicts that Ping An's operating profit after tax for the first three quarters will rise 5% year on year, which means a 20% year-on-year increase in the third quarter. According to the bank, the strong reversal of China's safe quarter results was mainly driven by a steady improvement in financial insurance underwriting performance and a reduction in depreciation pressure on asset management. The bank also predicted that Ping An's net profit after tax for the first three quarters is expected to rise 40% year on year, meaning a 1.7 times year-on-year increase in the third quarter, benefiting from a strong rebound in the stock market and one-time profits from the technology sector, partly offset by an increase in convertible bond liabilities due to rising stock prices.