Ping An of China (601318): Property insurance bank leases power technology to enable investment gains
Event: In the first half of 2019, the company realized a net profit of 97.7 billion attributable to mothers, which will increase by 68 in the future.
1%; net profit attributable to non-attributed mothers was 87.4 billion yuan, an annual increase of 50.
6%; attributable mother’s operating profit of 73.5 billion, a year-on-year increase of 23.
8%; embedded value of 7.132 billion, an increase of 11% over the beginning of the year; operating ROE increased by 0.
4ppts to 12.
3%; half-year dividend 0.
75 yuan / share.
The number of agents was reduced, and the value of new business increased.
In the first half of 2019, the value of the company’s new life and health insurance business increased by 4 each year.
7% to 410.
500 million; the company downplayed the start, continued to focus on long-term protection products, and promoted the increase in the value of new business5.
7ppts to 44.
7%, hedging the impact of new policy premiums.
The company expanded its agent team’s cleaning and assessment efforts, and the total number of agents terminated at the end of June was 128.
630,000 people, a decrease of 9 from the end of 2018.
3%, while maximizing the value of new business per capita 8.
5% to RMB 29,314 per capita for half a year.
We believe that the increase in per capita capacity will be the key to the growth of NBV. It is expected that the company’s NBV will increase by 6% in 2019 and the internal value-added will increase by 22%.
The interest rate was cut for profit, and the comprehensive cost rate was lower than that of the industry.
In the first half of 2019, the company’s property and casualty insurance business realized an original premium income of 130.5 billion yuan, an increase of 9 in ten years.
7%; the increase in the payout ratio causes the comprehensive cost ratio to double.
8ppts to 96.
6%, but continued to continue in the same industry; benefiting from lower yields and increased investment income, P & C insurance net profit increased significantly by 69.
It is expected that the annual comprehensive P & C insurance cost rate of the company will remain stable, and the concessions are expected to boost gradually the profitability of P & C insurance.
Equity investment contributes elasticity, and the return on investment has improved significantly.
The company’s total investment yield in the first half of 2019 was 5.
5%, rising by 1 every year.
5ppts, net investment yield 4.
5%, rising by 0 every year.
3 percentage points.
As of the end of June 2019, the company’s investment assets increased by 5 compared with the beginning of the year.
8% to 2.
96 trillion, of which shares and funds accounted for an increase of 1.
1ppts to 13%, with a book value of 326.6 billion.
As the stock market continues to fluctuate, the contribution of equity investment elasticity is expected to weaken in the second half of the year.
The banking retail transformation has been fruitful and the asset quality has continued to improve.
In the first half of 2019, Ping An Bank’s retail business revenue increased by 31.
7% to 38.6 billion, the proportion of retail business revenue increased to 56.
According to Ping An Bank’s 2019 Interim Report, 26 billion debt-to-equity swaps are about to be completed, gradually increasing and consolidating capital, and accelerating business development.
Leasing continued to grow at a high speed, and securities trusts developed steadily.
In the first half of 2019, Ping An Finance Leasing’s net profit further increased 42.
4%, the non-performing ratio is low in the industry, continuing a good development trend; the net profit of the trust business exceeds 10.
6%, the scale of trust management assets fell by 17.
2% to 3.0969 trillion, but active management financing increased by 41 year-on-year.
6%, boosting profits.
The net profit of Ping An Securities increased by 31% each year, and the industry performance was average.
Technology empowers ecological customers to migrate and immigrate, One Account Express intends to go public in the United States.
In the first half of 2019, the technology business realized revenue of 38.4 billion yuan, an increase of 34% year-on-year; the contribution was attributed to the mother’s operating profit32.
700 million, down 22% before.
The company continues to deepen its comprehensive financial strategy to realize the main business of science and technology empowerment, the five major ecosystems have realized customer migration, and the level of cross-selling has continued to increase.
Bloomberg 杭州夜网论坛 Democracy reports that Financial OneAccount has submitted a listing application to the Securities and Exchange Commission, which is expected to increase value.
Maintain “Buy” rating and raise TP to 106.
We continue to be optimistic that the company will promote the steady increase of personal business value through the continuous increase in the number of individual customers and the in-depth excavation of customer value.
Based on the adjustment of the income tax rate and the company’s latest operating situation, the company’s profit forecast is raised. The company’s net profit for 2019-2021 is expected to be 1,739, 2,138, and 256.7 billion yuan (previously expected to be 1,408, 1,662, 1,955.3 billion for 2019-2021, respectively).Price starts from 88.
27 was raised to 106.
42 yuan, maintain “Buy” 杭州夜网论坛 rating.
Risk Warning: Macroeconomic Risks; Market Fluctuations; Unexpected Premium Growth