- We expect Prudential (SGX:K6S) to continue seeing faster-than-peer HK new business profit (NBP) in FY24F-25F, driven by its competitive edge in the mainland Chinese visitors (MCV) business and MCV-focused strategy.
More upside for Hong Kong agent channel market share
- - Read this at SGinvestors.io -
- In FY24F-25F, Prudential’s ongoing agent recruitment (1H23: 1,200 new agents; 2H23F: 2,800 new agents) and rising utilisation of excess capacity (1H23: 75% increase in active agents) will help to continue expanding market share and drive better-than-system NBP growth, in our view.
China difficulties set to continue in FY24F
- - Read this at SGinvestors.io -
- Secondly, the 1H24F base is challenging due to the bringing forward of insurance demand in 1H23.
- Thirdly, the difficult environment for the bancassurance channel is set to continue in 1H24F, thus lowering NBP, given CPL’s high bancassurance channel mix in mainland China.
Less pressure on new business margins in FY24F-25F
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Michael CHANG CFA CGS-CIMB Research | Laura LI Zhiyi CGS-CIMB Research | https://www.cgs-cimb.com 2024-03-12
Previous report by CGS-CIMB:
2023-12-12 Prudential - Key Regional Financial Conference Takeaways.
Price targets by 3 other brokers at Prudential Target Prices.
Listing of research reports at Prudential Analyst Reports.
Relevant links:
Prudential Share Price History,
Prudential Announcements,
Prudential Dividends & Corporate Actions,
Prudential News Articles
