Ping An 2318

[winston]

DJ MARKET TALK: Ping An +4.8%; No Plan To Sell Fortis Stake

1049 [Dow Jones] Ping An (2318.HK) +4.8% at HK$51.00, as FY08 earnings slump well flagged, due largely to huge CNY22.79 billion impairment charge on 4.81% Fortis stake. President Louis Cheung tells Dow Jones Ping An has no plans to sell stake despite dismantled Belgian-Dutch financial services group losing more than 90% of value over past 18 months.

"We still see some value in the remaining company," Cheung says. Without burden of Fortis, Ping An's investment performance in 2009 set to be much better vs 2008, says Shenyin Wanguo Research; keeps Outperform rating with target price of HK$55.50. Separately, Daiwa keeps stock as Buy, 6-month target price unchanged at HK$55.60. Stock's highest in current rebound of rally is HK$54.20, touched Monday, set to be near-term cap.

[winston]

DJ MARKET TALK: Ping An +6.3%; GS Tips As A Top China Fincl Pick

1211 [Dow Jones] Ping An (2318.HK) extends gains, +6.3% at HK$51.70, on expectations of earnings recovery post Fortis-hit FY08. Goldman Sachs says results modestly better than expected; given strong premium/EV growth outlook, A-share investment return in 1H09/FY09, Ping An among top picks of China financials coverage; keeps Buy call, putting estimates, target price (HK$42.00) under review, awaiting more detailed 2009 guidance.

Adds, CNY22.79 billion impairment charge on 4.81% Fortis stake in line with estimate, effectively removes overhang. Volume heavy at HK$440.9 million, recent high of HK$54.20 near-term cap. Bigger rival China Life (2628.HK) +3.0% at HK$27.40.

[winston]

DJ MARKET TALK: JPM Cuts Ping An To Neutral On Valuation, Risks

1348 [Dow Jones] STOCK CALL: JPMorgan cuts Ping An (2318.HK) to Neutral from Overweight on valuation, potential earnings, capital risks; tweaks target price to HK$50.40 vs HK$50.70. House lowers FY09-10 EPS estimates by 29%, 16% to reflect lower profit in banking (due to NIM pressure), life insurance (higher reserving, acquisition costs for new business); expects Ping An's strategy to diversify into non-insurance business to remain intact, but any M&A transactions to trigger capital-raising exercise.

Adds, key upside risks A-share market, strong premium growth trends. Stock +6.1% at HK$51.60 midday; HSI up 2.3%

[winston]

DJ MARKET TALK: ML Raises Ping An Target To HK$54.00 Vs HK$47.97

1436 [Dow Jones] STOCK CALL: Merrill Lynch raises Ping An (2318.HK) target to HK$54.00 from HK$47.97, after incorporating 20% gains on China's A-share markets this year and higher growth expectations. "While Ping An share price has outperformed the HSCEI by 21.4% year-to-date, and there may be some correction in the near-term, we believe that sentiment for the full year would continue to be fueled by better investment and premium outlook," says Merrill Lynch. Keeps at Buy. Stock +7.0% at HK$52.05; HSI up 3.0%

[winston]

Ping An slams brake on foreign forays by Katherine Ng, The Standard

Ping An Insurance (2318), the mainland's second- largest insurer, will put its overseas expansion plan on hold for the next two years as the market remains uncertain, a senior executive said.

"Nobody knows when the financial crisis will bottom. We need to avoid risks and will not consider overseas investments in the next two years," executive vice president Dominic Leung Ka-kui told The Standard.

"Recent data show no signs of improvement. It would also be difficult for valuation amid such an environment. The board believes buying overseas would mean big risks."

The Shenzhen-based insurer last year wrote off 22.8 billion yuan (HK$25.87 billion) on its investment in the ailing Dutch-Belgian Fortis Group. It led to Ping An's net profit plunging by nearly 99 percent despite its core business showing growth.

Fortis, in which Ping An holds 5 percent, will vote at the end of this month on a revised bailout by BNP Paribas. Shareholders voted down a revamp in February, but seeking global assets remains a long-term goal. "It will not change due to Fortis [investment]. But we need to be cautious," Leung said.

The insurer last year partly offset its investment loss on a reinsurance deal with Munich Re and reported a 2 billion yuan one-off gain. Leung, who also heads the insurance business, said the division will likely remain the biggest earnings driver this year and there may be a need for both life and property and casualty business to raise funds for expansion.

Year-on-year premiums growth of life insurance and property and casualty insurance during the first two months were 18 percent and 43 percent, compared to the industry averages of 11 percent and 14 percent, respectively. Leung said the momentum has continued during March and April.

Due to the aging population, growth is also expected at Ping An's health insurance unit, which sells high net worth products.

http://www.thestandard.com.hk/news_deta ... 90414&fc=2

[winston]

DJ MARKET TALK: Daiwa Ups Ping An Target To HK$62.29 Vs HK$55.60

0906 [Dow Jones] STOCK CALL: Daiwa raises Ping An (2318.HK) target price to HK$62.29 from HK$55.60 on higher-than-expected value of one-year's new business. Estimates recent A-shares, H-shares rebound generated CNY4 billion unrealized gain in equity investments from Jan. 1 through April 8; could create potential upside to investment-return forecast.

Notes management to focus on increasing new-business value in FY09 rather than premium growth; tips new-business margin to rise to 22.5% in FY11 from 19.6% in FY08. Rates at Buy. Shares closed Thursday up 7.7% at HK$52.40.

[winston]

Ping An net tumbles 70pc by Katherine Ng, The Standard HK

Ping An Insurance (2318), the second-largest insurer in the mainland, recorded a more than 70 percent drop in net profit in the first quarter due to higher expenses in commission and administration operation.

Net profit for the first three months of the year was 2.07 billion yuan (HK$2.35 billion), versus 7.22 billion yuan in the same period in 2008.

Even as net earned premium grew 20 percent to 29.65 billion yuan, interest income from banking business and fees fell 10 percent to 1.5 billion yuan.

Commission income of non- insurance operations dropped 32 percent to 431 million yuan.

Investment income declined by 31.8 percent to 5.45 billion yuan. Total expenses, meanwhile, grew by more than 30 percent in the first quarter. Chairman Ma Mingzhe said he was satisfied by a "good start with premium income increasing rapidly" after the implementation of new strategies for its life insurance business.

Premium income for Ping An's life insurance and bancassurance business rose by 42 percent and 150 percent respectively, Ma said.

But he conceded that 2009 remains challenging as there are no clear signs of a global economic recovery.

"The three quarters ahead will remain uncertain while growth in the domestic economy still faces pressure. [All these] will bring uncertainty in investment income," Ma said in a statement to the local bourse.

Shares of Ping An fell 2.84 percent yesterday to close at HK$49.70.

[winston]

Garbage. As if it's going to matter...

*DJ Ping An Target Cut To HK$53.70 Vs HK$54.60 By Deutsche Bank

[winston]

DJ MARKET TALK: UBS Cuts Ping An To Neutral; Recovery Priced In

1414 [Dow Jones] STOCK CALL: UBS cuts Ping An (2318.HK) to Neutral from Buy, which mainly due to valuations given share price up more than 30% in past 2 months; current valuations "fully reflects the expect earnings recovery in 2009." Adds, stock no longer an A-share play for investors in 2009; notes Ping An's 1Q value of equity investments remained stable on-quarter at CNY54 billion (10% of total investment assets), while Shanghai Composite +38% in 1Q.

With low exposure to equity investment expected in 2009, scope for investment outperformance will be limited; forecasts Ping An's FY09 investment return to be 4%. Stock +4.7% at HK$50.80 midday.

[winston]

Not vested. So easy to sell high margined agency business ?

DJ MARKET TALK: Nomura Raises Ping An Target 30%; Keeps At Buy

0810 [Dow Jones] STOCK CALL: Nomura raises Ping An (2318.HK) target price to HK$65 from HK$50, reflecting revised FY09 VNB growth assumption of 25% vs previous 15%; keeps Buy call. Despite insurer tilting toward bancassurance in 1Q09, says recent meeting with company confirms growth in higher-margin agency business strong; while market critical of Ping An's growth composition in 1Q09, driven by lower-margin bancassurance, "we believe strong growth in the higher-margin agency business could result in value growth surprising on the upside," Nomura says.

Adds, relative share-price performance for China life insurers in near term could be dictated by divergence in top-line growth profiles; while noting long-term benefit of China Life's (2628,HK) strategy on improving product mix, it may come at cost of short-term growth pressure. Ping An ended down 1.1% at HK$52.40 yesterday