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]Morgan lifts PICC P&C (02328) to HK$21.2
 Morgan Stanley lifted its target price for PICC 
P&C (02328) to HK$21.2 from HK$19.9, and maintained its "overweight" rating.
  The research house said the industry is making gradual changes to adapt a new operating
environment in 2018, demand for insurance remains intact and healthy. Valuation should 
continue to re-rate for solid names and Morgan maintained its "attractive" industry view.
  It noted that PICC P&C rose from 1.1x 12-month forward BV to 1.2x during 2017, but still
appears quite attractive. Resilient profitability amid deregulation surprised many 
investors, and concerns over balance sheet risks appear to be abating along with a general
recovery of the bank's valuation in China.
  Morgan expects further upside given its high ROE profile and potential dividend upside.
The third round of auto deregulation could also take longer to be implemented and 2018 
might be another strong year for P&C companies.

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