Citibank: China Reinsurance (01508) target price reduced to HK$1.5 and raised this year's profit forecast

The Zhitong Finance App learned that Citi released a research report saying that after China Reinsurance (01508)'s results for the first half of the year were announced, the 2026 net profit forecast was raised 12% to RMB 11.293 billion to reflect the reduction in insurance service cost forecasts; and slightly lowered the 2027 and 2028 net profit forecasts by 1% each to reflect weak insurance income growth. The bank slightly lowered the target price of China Reinsurance from HK$1.55 to HK$1.50, maintaining a “neutral/high risk” rating.

Citi pointed out that since the company will no longer disclose embedded value data from the first half of 2026, the valuation of the life insurance and health reinsurance business was changed to calculated based on the comprehensive equity market price, and the market account ratio ratio of the original insurance production insurance business was lowered from 0.5 times to 0.3 times to reflect the declining trend in return on equity. Citi predicts that China Reinsurance's net profit for each year from 2026 to 2028 will be RMB 11.293 billion, RMB 10.544 billion, and RMB 11.523 billion, respectively.