Prudential Plc 2378; PUK

[winston]

not vested

Tailwinds add up; initiate with an Add

We see 12 tailwinds for Pru in the near, medium and long term, which we believe can drive a closing of its sizeable P/EV valuation gap vs. AIA.

Near-term catalysts include an Asia-based CEO, a Macau licence, improved capital ratios and EV after HK RBC adoption and a decrease in Covid cases.

Pru has significantly underperformed AIA since Nov 2021 by 39% pts, with its 119% P/EV gap to AIA only exceeded four times since 2010 (Fig 109).

Initiate coverage with an Add call. TP of HK$144.7, with FY22F P/EV at 0.7x.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... B9B3FDFEBA

[winston]

not vested

PRU (02378.HK) 1H Results Swing into USD104M Profit; 1st Interim DPS US5.74 Cents

PRU (02378.HK) announced that, for the first half of 2022, the net profit of the group amounted to USD104 million, compared to a loss of USD4.01 billion in the corresponding period of 2021.

The EPS was US3.8 cents.

A first interim dividend of US5.74 cents per share was declared, against a dividend of US5.37 cents per share for the corresponding period of the previous year.

Dividend History
Announce Date Event Particular
2022/03/09 Interim 2 D:USD 0.1186(equivalent to HKD 0.9307)
2021/08/11 Interim D:USD 0.0537(equivalent to HKD 0.4179)
2021/08/06 Special Distribution in specie:1 Jackson Financial Inc. share for 40
2021/03/03 Interim 2 D:USD 0.1073(equivalent to HKD 0.8332)

Source: AAStocks Financial News

[winston]

not vested

Prudential hit by China’s zero-Covid policy

Asia-focused insurer says new Hong Kong business profits fell 31% in the first half of 2022

Solely focused on insurance products in Asia and Africa — but with a UK domicile and primary listings in London and Hong Kong.

It split from its UK business, M&G, in 2019 and its US operation, Jackson, two years later.

Of its five cornerstone markets — Hong Kong, mainland China, Indonesia, Malaysia and Singapore — new business profits increased only in Singapore during the first half of the year.

Its growth markets, which include Taiwan, India, Vietnam and Africa, saw a combined increase in new business profits of 18 per cent to $304mn.

Source: Financial Times

https://www.ft.com/content/0c3f71e4-fd1 ... a8f528625e

[winston]

not vested

Prudential (2378 HK)
1H22: New Business Profit Below Expectations

Prudential’s 1H22 earnings came in below our expectations as sales were curtailed by
the resurgence of COVID-19 cases and interest rate hikes in various markets.

However, overall sales weakness was partially buffered by the margin expansion of its Singapore operations and stronger APE sales from CPL.

We trim our 2022-24 earnings to factor in the lacklustre 1H22 earnings, and expect 2H22 to see a better recovery.

Maintain BUY with a lowered target price of HK$158.10.

Source: UOBKH

https://research.uobkayhian.com/content ... 6fa12b7608

[winston]

not vested

Prudential PLC
China surprising on the upside in 2Q22

The most surprising element of its 2Q22 results was mainland China’s new business profit (NBP)– only -5% yoy, driven by a marked turnaround in 2Q22.

2Q22 China APE was +68% yoy (1Q22’s -7% yoy), driven by bancassurance (1H22: +28%), with 1H22 agency APE falling 11% yoy.

Singapore was the strongest region for 1H22 NBP growth, up 13% yoy.

Reiterate Add, with an unchanged TP of HK$144.7.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A52D5C28EB

[winston]

not vested

Prudential PLC
1H22 NDR takeaway: Diversification matters

We hosted Pru’s post-results NDR and were impressed by how its diversified distribution channel mix was an advantage amid Covid-19.

Bancassurance stood out as the main driver of new business profits (NBP) across most of its markets in 1H22, and we see this persisting in 2H22F.

In addition, its more diversified geographic exposure within mainland China saw Covid-19 lockdowns having a relatively muted impact in 1H22.

Pru has been included on 5 Sep into the Shenzhen-HK Stock Connect Programme.

Reiterate Add rating, with an unchanged TP of HK$144.7.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... DA14A9B3EF

[winston]

not vested

Prudential PLC
Exposed to faster growth channels/regions

We forecast 2H22F NBP to return to growth yoy (1H22: -7%), driven by our belief of continued solid growth momentum of APE in Jul and Aug 2022.

We still see bancassurance as the main driver, driven by a marked increase of bancassurance sign-ups in 2022, especially within mainland China.

We think Singapore and mainland China could be the strongest regions for 2H22F NBP growth, with Indonesia, Malaysia and Hong Kong the weakest.

Reiterate Add rating. TP cut to HK$119 from HK$144.7 due to cuts in our
FY22F–24F EPS, EVPS and NBP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... CE3C303A8E

[winston]

Prudential (2378 HK)
Remains Appealing With Discounted Valuation Despite Market Volatility

CPL’s expansive geographic footprint has become its key advantage despite the
lockdown of multiple cities in China.

We reckon Hong Kong’s 2H22 growth is still domestically driven and investors could focus on ASEAN while the reopening of the Hong Kong-China border remains uncertain.

We have reduced our earnings forecasts for 2022-24 to account for the impact of the interest rate hike. Maintain BUY with a lower target price of HK$128.20.

Source: UOBKH

https://research.uobkayhian.com/content ... 52c0938caa

[winston]

not vested

BUY(Initiating Coverage)
Price Target 12-mth (H):HK$165 (35.2% upside)

Recovery in MCV segment to drive multiyear growth
Revival in HK MCV market segment to drive NBP growth of 16%/19% y-o-y in FY23F/24F
Expect China business to experience solid growth supported by strong bancassurance channel
The new arrival of CEO to help strengthen its Asia story and business execution
Initiate with BUY, TP of HK$165, implying 1.3x FY23F P/EV

Source: DBS

[winston]

vested

PRUDENTIAL PLC FULL YEAR 2022 RESULTS

A RESILIENT PERFORMANCE IN 2022, WELL POSITIONED FOR OPPORTUNITIES IN 2023 AND BEYOND

LONDON, UK / ACCESSWIRE / March 15, 2023 / Performance highlights for the continuing business on a constant (and actual) exchange rate basis1

APE sales2 up 9 per cent (5 per cent) to $4,393 million with both agency and bancassurance channels delivering APE sales growth in the second half of 2022

New business profit3 down (11) per cent ((14) per cent) to $2,184 million with the impact of higher volumes being offset by higher interest rates and business mix effects

Adjusted operating profit4 up 8 per cent (4 per cent) to $3,375 million

EEV operating profit5 up 15 per cent (12 per cent) to $3,952 million. EEV shareholders equity is $42.2 billion, equivalent to 1,534 cents per share

GWS shareholder capital surplus over GPCR of $15.6 billion6, equivalent to a cover ratio of 307 per cent6 (2021: 320 per cent7)

Operating free surplus generated8 from life and asset management business up 9 per cent (6 per cent) to $2,193 million

Second interim dividend of 13.04 cents per share, 18.78 cents per share for the full year, up 9 per cent

https://finance.yahoo.com/news/prudenti ... 00277.html