Ping An 2318

[winston]

Not vested.

DJ MARKET TALK: Ping An Down 3.1%; CS Keeps Outperform

1027 [Dow Jones] Ping An (2318.HK) down 3.1% at HK$68.80, roughly in line with H-share financial index (down 2.7%), as sentiment hampered after PBOC's RRR hike decision. Also weighing on sentiment is Ping An's life-premium growth in December at only 14% on year vs FY09's 31% rise.

But Credit Sussie keeps Outperform, HK$88 target, noting volumes growth remains consistent and attractive in life insurance business. Notes continuation of strong growth in life volumes bodes well in terms of upside risk to house's 30% VNB (value of new business) growth forecast for FY09, which allows growth to slow to about 21% in 2H09.


Source: Dow Jones Newswire

[winston]

Not vested. From UOBKH:-

Earnings Risk
A-share market volatility.


Valuation/Recommendation

Favourably positioned for 2010. Ping An is currently trading at 2.6x 2010F P/EV, which we believe remains attractive given the prospects of higher earnings growth on the low base of 2009, strong VNB growth leading to EV accretion, accommodative macro backdrop and opportunities surrounding China’s pension reform.

Maintain BUY and target price of HK$86.30.

[winston]

Ping An to Boost Bond Holdings, Says Stocks Won’t See ’09 Gains

Jan. 13 (Bloomberg) -- Ping An Insurance (Group) Co. will boost its holdings of bonds such as corporate debt this year as inflation drives up yields, Chen Dexian, deputy chief investment officer of China’s second-largest insurer, said in an interview.

The Shenzhen-based company cut cash holdings to boost bonds in the second half of 2009, Chen, who manages about 560 billion yuan ($82 billion) as chairman of Ping An Asset Management Co., said without giving details. Fixed-income investments fell to 74.7 percent as of June 30, down from 80.7 percent at the end of 2008, according to the company’s 2009 half-year report.

“We were below our bond investment benchmark in 2009 and since the slowly climbing interest rates are good for us, we’re now slowly getting neutral,” Chen said in an interview in Shanghai yesterday. “If rates reach very high levels, we may go above the benchmark.”

China’s central bank sold bills at a higher yield for the second time in a week, increasing the likelihood policy makers will raise the benchmark interest rate in the first half as consumer prices climb. China yesterday unexpectedly raised the proportion of deposits banks must set aside as reserves to cool the world’s fastest-growing major economy as a credit boom threatens to stoke inflation and create asset bubbles.

China’s consumer prices rose 0.6 percent in November from a year earlier, the first increase in 10 months.

Rising yields will help Ping An improve returns on its new debt holdings, Chen said. The spread between so-called guaranteed enterprise bonds and government debt may decline to between 100 and 120 basis points later this year from about 140 basis points now, which remains “very attractive,” he said.

Further Gains

China’s benchmark stock index still has room to rise, Chen said, after the Shanghai Composite Index surged 80 percent last year as a 4 trillion yuan stimulus package helped the world’s third-largest economy recover from the global financial crisis.

“Our estimate is corporate profits will not be bad, and neither are valuation levels,” Chen said. “But it will be difficult to see gains like last year’s, and volatility in the stock index will increase.”

Ping An’s investment returns exceeded targets and were “relatively desirable” in 2009, he said without being specific.

Ping An boosted equities by 1.8 percentage points in the first half of 2009 to 9.6 percent as of June 30 as the market rallied. The ratio was “a little bit” higher at the end of last year, Chen said, adding any level between 10 percent and 15 percent is “normal.”

Profits at listed companies may rise 25 percent this year, while valuations will be about 18.5 times earnings, Chen said. The executive said he favors financial, property and medical stocks for the medium to long term, or over the next two-to- three years.

The Shanghai Composite rose 1.9 percent to 3,273.97 yesterday after the nation overtook the U.S. as the world’s biggest auto market and shipping lines gained, raising optimism about the China’s economic recovery.

http://www.bloomberg.com/apps/news?pid= ... aFo36cpkOQ

[winston]

by eauyong » Tue Feb 23, 2010 12:52 pm

<ET Net News Agency, 23 February 2010>

Ping An Insurance (02318) said that 860 million restricted circulating A shares, hold by 3 shareholders, will be unlocked from 1 March 2010.

Of which, the shareholders will dispose around 800 million shares gradually within 5 years. (PL)

[winston]

Not vested.

=DJ UPDATE: Ping An: 3 Shareholders Free To Sell 11.7% Stake

(Adds comments from analysts and Ping An's spokesman.)

SHANGHAI (Dow Jones)--Three of Ping An Insurance (Group) Co.'s (2318.HK) shareholders said Tuesday they would gradually sell down their holdings, which combined represent 11.7% of the insurer and could garner as much as US$5.7 billion, after the securities' lockup period expires Monday, news that sent the stock tumbling in Shanghai.

Ping An said the shareholders--three entities named Shenzhen New Horse Investment Development Co., Shenzhen Jingao Industrial Development Co. and Jiangnan Industrial Development Co. that are largely made up of the insurer's employees and managers, including Chairman Peter Ma and Louis Cheung, general manager of Ping An--will gradually sell a combined 860 million nontradable yuan-denominated A-shares over five years. The shares had been subject to a three-year lockup period since Ping An's initial public offering in Shanghai in 2007.

Ping An's A-shares closed down 8.9% at CNY44.72 Tuesday, while the benchmark Shanghai Composite Index fell 0.7% to 2982.58. The company's Hong Kong-listed H-shares were down 2.0% at HK$59.70.

Analysts said the planned divestments were larger than investors had expected, but were quick to point out that aggravated concerns of more share supply on an already vulnerable Chinese market were the main cause for the heavy share sell-off, and that the potential divestment by the three shareholders doesn't necessarily indicate weakening confidence in the insurer among its employees.

What appeared to spook investors was the fact that the shareholders gave a clear five-year time frame for the sales, which is in stark contrast to most Chinese blue-chip companies that would typically try hard to reassure the market by stressing that relevant shareholders would only sell a tiny portion of their stake or won't sell at all.

Based on Ping An's current A-share price, the pending stock sales could garner as much as US$5.7 billion for the sellers, a spectacular return for those who took the risky bet on the once little-known company as early as 18 years ago and saw the latter grow into China's largest private enterprise and its second biggest life insurer after China Life Insurance Group Co. (LFC). Some early buyers paid as little as CNY1.76 a share.

'The wording of the three shareholders' statement gives an impression that the magnitude of the future divestment could be much stronger than expected. Most analysts had expected them to unload a small portion of their holdings as the stake is key for Ping An's management to retain the control of the company,' said Yang Jianhai, an analyst at Essence Securities in Shanghai.

The three Ping An shareholders said the number of shares they will sell each year would represent no more than 30% of their respective stakes in the insurer as of Feb 28, 2010.

'The proposal is the best we can do to stabilize the stock market and protect stakeholders' interest,' said Sheng Ruisheng, a spokesman for Ping An.

However, analysts said that given the massive increase in the value of Ping An's shares in recent years it is to be expected that Ping An's employees would want to take profits from their long-term investments.

Shenzhen New Horse Investment Development, the biggest of the three shareholders with a 5.3% stake, holds 389.6 million Ping An shares. Ping An's 2007 IPO prospectus showed New Horse had amassed shares since 1992 by paying CNY164 million in cash and being rewarded stock dividends.

Shenzhen Jingao Industrial Development owns a 4.51% stake, and Jiangnan Industrial Development holds 1.89% of Ping An.

Sheng said the incentive scheme played an important role in replenishing capital and retaining talent for the insurer in its early years.

'Something we need to emphasize is the operations of Ping An's core businesses are good. We are full of confidence about the perspective of the company as well as the Chinese financial markets,' Sheng said, responding to concerns that the potential selldown may indicate its employees' pessimism about Ping An's prospects.

Some analysts said the market may have overreacted to Ping An's statements Tuesday because the divestment won't affect the company's strong long-term fundamentals.

In addition, they added the shareholders' expected exit may offer opportunities for existing strategic investors, such as HSBC Holdings PLC, to boost their presence in the company. HSBC holds a 16.8% stake in Ping An.

Source: Rose Yu, Dow Jones Newswires

[winston]

Not vested.

Valuation/Recommendation

Maintain BUY. Given the strong earnings momentum over 1Q10, we maintain BUY on Ping An.

Although there lacks sufficient disclosure for a detailed analysis, we believe underlying EV and NBV will continue to see solid growth for the year.

Source: UOBKH

[winston]

Not vested. From Phillips :-


Risks

Decrease of China's economyï¼›
The unexpected volatility in domestic stock market, leads the losses of the Group's investment.


Valuation

In all, premium incomes of Ping An increased strongly, its performance is better than the peers and has the reasonable valuation. We estimate that the value for life insurance of Ping An is about HK$60, coupling with the valuations for property insurance, banking and other aspects, we increase Ping An's 12-month target price to HK$80.00, around 18% higher than its latest closing price, equivalent to 27 times EPS and 2.8x P/EV in 2010. We maintain “Buy” rating on Ping An.

( PE 27 ??? )

[iam802]

http://english.caijing.com.cn/2010-08-25/110505035.html

»Ping An Insurance Co., China's second-biggest insurer, said first-half profit climbed 27.8 percent to 9.87 billion yuan, driven by expanding premiums and increasing profit in securities and trust businesses.

»Operational revenue stood at 93.82 billion yuan ending June 30, 2010, said the half-year results released on Tuesday.

[winston]

Not vested. Just a few days ago, the "expert" analysts were asking you to buy Chinese Life insurers because interest rates are expected to go up. Well, do you know what you are buyig ?


=======================================

Ping An in surprise 25pc slide
Thursday, October 28, 2010

Ping An Insurance (2318) surprised the market by posting a 25.9-percent decline in net profit in the third quarter, due to a 49.5-percent jump in claims and policyholders' benefits.

That was much worse than the market expectation of a 20-percent growth to 5.1 billion yuan (HK$5.92 billion) from three analysts surveyed by Reuters.

Net profit for the three months ended September 30 fell to 3.145 billion yuan, compared with 4.245 billion yuan earned in the same period last year.

Because of this, the year-on-year growth in net profit for the first nine months rose a mere 8.4 percent.

The insurance giant also warned that there may be further pressure on its fourth-quarter result, with a more cautious investment environment and investment sentiment in the coming months, compared with last year.

China's economy is expected to rebound after stabilizing, but the fundamentals have yet to be continuously fortified, Ping An said.

"The internal market is still full of uncertainties and instabilities ... and the bond yield is expected to remain at a relatively low level despite a slight rise as the hike of interest rate."

Ping An's gross written premiums and policy fees rose 35 percent to 35.25 billion yuan between July and September, and jumped 40 percent to 120.33 billion yuan on a nine- month basis ended September 30.

Investment income in the third quarter rose slightly to 9.31 billion yuan from 9 billion yuan one year ago.

The insurer also said Ping An Bank recorded a huge profit surge and Shenzhen Development Bank made strong contributions.

Ping An shares slumped nearly 3 percent to close at HK$84.15 yesterday.


http://www.thestandard.com.hk/news_deta ... 01028&fc=7

[winston]

Not vested. From Phillips:-


Risks

The stock market fluctuates violently, which results in sharp decline of its investment proceeds.

The growth rate of premium income decreases.


Evaluation

In general, Ping An keeps steady growth in premium income, better than its counterparts and its evaluation is reasonable.

With still the method of evaluation by parts, we calculated the estimated value of Ping An as HKD65. In addition to the estimated value of property insurance, banks and etc, we adjust the 12-month target price of Ping An to HKD105 that has 30% premium than the latest closing price, which is equivalent to 26 times of PE ratio and 5 times of PB ratio in 2011.

The ratio of stock price / embedded value in 2010 and 2011 will be respectively 2.6 times and 2.1 times. We maintain the buy rating.