标题：China LifeUptrend lacks support from fundamentals
发布日期：2016-02-24 13:37:53
内容： Substantial earnings pressure ahead in 2016E. Downward interest rate trend will weigh on its net investment yield Incrementally lower interest rates may create a potential need to further raise reserves in 2016E and 2017E Market investors tend to factor in falling interest rates to arrive at lower valuations for insurance names Potential risks: Pressure from narrower spreads in a sustainably low interest rate environment; andsystemic risks from asset quality arising from a declining stock market and economic downturn. Earnings estimates and valuation. We arrive at Rmb18.3/20.6 per share for the Companyˇs embeddedvalue in 2015E/16E based on its actuarial assumptions, which implies 2015E/16E P/EV of 1.21x/1.08x.We therefore reiterate our HOLD call on the stock as there remains downside in its valuation.
发布日期：2016-02-24 13:37:53
内容： Substantial earnings pressure ahead in 2016E. Downward interest rate trend will weigh on its net investment yield Incrementally lower interest rates may create a potential need to further raise reserves in 2016E and 2017E Market investors tend to factor in falling interest rates to arrive at lower valuations for insurance names Potential risks: Pressure from narrower spreads in a sustainably low interest rate environment; andsystemic risks from asset quality arising from a declining stock market and economic downturn. Earnings estimates and valuation. We arrive at Rmb18.3/20.6 per share for the Companyˇs embeddedvalue in 2015E/16E based on its actuarial assumptions, which implies 2015E/16E P/EV of 1.21x/1.08x.We therefore reiterate our HOLD call on the stock as there remains downside in its valuation.
