UBS elevated its target price for CHINA LIFE (02628.HK) from $29 to $42 and maintained a Buy rating based on three main reasons:
1. Improved prospects for new business value growth.
2. Favorable macro conditions leading to an upward revision of embedded value forecasts.
3. An update of valuation benchmarks to 2026.
Additionally, UBS highlighted that CHINA LIFE's current valuation is attractive, with a 12-month forward PEV of 0.5x and a PB ratio of 1.22x. The firm also noted that CHINA LIFE is positioned to benefit significantly from the migration of deposits and the upward trend in the equity market in mainland China. Furthermore, UBS anticipates strong new business growth in January, particularly in the bancassurance channel.
