UPDATE: DBS Group Upgrades China Life Insurance (2628.HK) (LFC) to Buy, 'Seeing book quality improvements'

September 27, 2022 4:52 AM EDT
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    0 Buy, 0 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - September 27, 2022 4:52 AM EDT)

DBS Group analyst Ken Shih upgraded China Life Insurance (2628.HK) (NYSE: LFC) from Hold to Buy with a price target of HK$17.00 (from HK$13.00).

The analyst comments "We see that China Life is making good progress in the individual agent channel reform in 1H22. The contraction in its life agent headcount has slowed down, with -9% h-o-h in 1H22, compared to peers’ average of 32% h-o-h. The headcount is now almost back to its FY14 level. The new management has emphasized agent team stabilization and have adjusted basic rules[1] to improve agent quality. With its strategy of maintaining stability of agent headcount, we expect limited downside to China Life’s agent headcount versus peers going forward. We expect headcount to decline by 3% h-o-h in 2H22F and hold stable in FY23F."

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