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Morgan ups New China Life (01336) to HK$57
Morgan Stanley lifted its target price for New
China Life Insurance (NCI)(01336) to HK$57 from HK$53, and maintained its "equal-weight" 
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 NCI re-rated materially from its lows, up 127%, as the company executed on
its transition plan to become a quality play. The company is focusing on improving margin
by selling more health insurance and delivering above industry growth, which can be more 
difficult to achieve.
  Morgan belives that NCI will likely face more challenges to meet its high targets as
competition in the health insurance segment is intensifying. Earnings growth could also
lag peers due to its low return in-force book and higher costs.

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