HONG KONG, April 28 (Reuters) - Ping An Insurance <2318.HK> dropped 5.53 percent after reporting a 71 percent decline in first-quarter earnings, disappointing investors who expected to see a recovery this year.
By 0232 GMT, the stock was at HK$46.95.
"While we believe Ping An's profit should improve in the second quarter of 2009, the market will start to question the quality of premium growth and underlying profitability," said analysts with Merrill Lynch in a report.
"Confidence needs to be rebuilt; and therefore, sentiment should remain poor until further clarity is given at first-half results," they said while downgrading the stock to an underperform rating.
Merrill Lynch also cut its target price on the stock to HK$45 from HK$54.
