CMB International: Upgrading the target price of China Taibao (02601) to HK$40 for a “buy” rating

The Zhitong Finance App learned that CMB International released a research report saying that under a high base, China's Taibao (02601) net profit rebounded 11% year-on-year to 27.9 billion yuan in the first half of the year, which meant a 36% year-on-year increase in the next quarter. Due to the high banking insurance business structure, the value profit margin of the new business in the first half of the year increased slightly by 0.4 percentage points to 15% compared to the same period last year. According to the bank, it raised the Group's monthly stock surpluses forecast for this year, next year and 2027 to RMB 4.54, RMB 4.81 and RMB 5.28 respectively. The target price was raised from HK$34 to HK$40, maintaining its rating as “buy”.