Ping An 2318

[winston]

not vested

Ping An Insurance (2318 HK / 601318 CH) - Solid 9M24 performance

Ping An Insurance (Ping An) is China’s second largest life and P&C insurer, with an integrated financial services platform.

Driven by its strong agency focus, diversified business model and proprietary technology to improve the customer experience and facilitate cross-sales efforts, Ping An should continue to deliver organic growth in life/health insurance and internet finance, benefiting from the rising protection and wealth management needs of China’s rising middle class.

Following the life reform transition period for the company, which focused on improving its agent productivity and better integration of product offerings, we expect continued distribution cost discipline and life product mix improvements over the medium term.

Dividend policy has ranged between ~28% and 37% of OPAT from FY17 to FY23, with dividends per share (DPS) increasing at a compound annual growth rate (CAGR) of 8.4% during the period. BUY.

Source: OCBC

[winston]

not vested

<Results>PING AN 2024 NP Surges 47.8% to RMB126.61B; Final DPS Rises to RMB1.62

PING AN (02318.HK) announced its full-year results for the period ending December 31, 2024.

Revenue reached RMB1.14 trillion, up 10.6% YoY.

It recorded a net profit of RMB126.607 billion, up 47.8% YoY, with EPS at RMB7.16.

The company declared a final DPS of RMB1.62, vs RMB1.5 in the same of the previous year.

The full-year total annual DPS amounted to RMB2.55, reflecting a 5% YoY rise.

Cash dividend payout ratio based on OPAT attributable to shareholders of the parent company will be 37.9%, having risen for 13 consecutive years.

On a like-for-like basis with year-end 2023 assumptions, the group’s Life & Health NBV grew 28.8% YoY last year.

The agent channel NBV grew by 26.5% YoY.

Bancassurance channel NBV grew 62.7% YoY.

The number of Ping An Life’s individual sales agents grew steadily for three consecutive quarters to 363,000 as of December 31, 2024.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Ping An profit soars 47pc to 126.6b yuan

Reported a 47.8 percent rise in its net profit of 126.61 billion yuan (HK$136.11 billion) in 2024.

New business value of life and health insurance business, which measures the profitability of new policies sold, grew by 28.8 percent to 28.53 billion yuan

Investment yield of 5.8 percent in 2024.

The group's number of new customers rose 9.8 percent from a year earlier to 32.07 million last year.

Ping An Life's sales agents grew for 3 consecutive quarters to around 363,000.

Source: Reuters

https://www.thestandard.com.hk/section- ... 26.6b-yuan

[winston]

Broker│View

Huatai Securities│2024 EPS growth was slightly lower than expected, but the life NBV growth was resilient

JP Morgan│Life NBV growth improved; dividend increase beat; capital maintained steady growth

CICC│2024 profit was broadly in line; dividends continued to be stable

Morgan Stanley│Dividend increase to record high is a highlight; attention is paid to
the weak performance of banking business

Jefferies│2024 profit growth was in line; the dividend increase beat

UBS│2M25 NBV grew by a double digit

Citi│Increased investment income drove stronger earnings

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Ping An Insurance (2318 HK / 601318 CH)

Recommendation : BUY
Fair Value : HKD 62.70 (2318 HK) / CNY 62.75 (601318 CH)

COMMENDABLE PERFORMANCE WITH CONTINUED GROWTH IN DIVIDENDS

• FY24 operating profit attributable to shareholders of parent company (OPAT) and profit after tax and minority interests (PATMI) rose 9.1% and 47.8% year-on-year (YoY) to CNY121.9b and CNY126.6b respectively

• Declared FY24 dividend per share (DPS) of CNY2.55, representing growth of 4.9% YoY

• New business value (NBV) on a like-for-like basis jumped 28.8% YoY to CNY40.0b

Ping An Insurance (Ping An) is one of China’s largest life and P&C insurers, with an integrated financial services platform.

Driven by its strong agency focus, diversified business model and proprietary technology to improve the customer experience and facilitate cross-sales efforts, Ping An should continue to deliver organic growth in life/health insurance and internet finance, benefiting from the rising protection and wealth management needs of China’s rising middle class.

Following the life reform transition period for the company, which focused on improving its agent productivity and better integration of product offerings, we expect continued distribution cost discipline and life product mix improvements over the medium term.

Dividend policy has ranged between ~28% and 38% of OPAT from FY17 to FY24, with DPS increasing at a compound annual growth rate (CAGR) of 8% during the period.

Source: OCBC

[winston]

not vested

Ping An Insurance (2318 HK / 601318 CH) - Commendable performance with continued growth in dividends

Ping An Insurance (Ping An) is one of China’s largest life and P&C insurers, with an integrated financial services platform.

Driven by its strong agency focus, diversified business model and proprietary technology to improve the customer experience and facilitate cross-sales efforts,

Ping An should continue to deliver organic growth in life/health insurance and internet finance, benefiting from the rising protection and wealth management needs of China’s rising middle class.

Following the life reform transition period for the company, which focused on improving its agent productivity and better integration of product offerings, we expect continued distribution cost discipline and life product mix improvements over the medium term.

Dividend policy has ranged between ~28% and 38% of OPAT from FY17 to FY24, with DPS increasing at a compound annual growth rate (CAGR) of 8% during the period. BUY.

Source: OCBC

[winston]

not vested

Ping An Insurance Group (2318 HK)

1Q25: Strong NBV Growth; Net Profit Misses Estimates On Non-operating Losses

Ping An reported mixed results with strong NBV growth of 35% yoy, but net profit declined 26% on a one-off item and fair value losses on bond investments.

OPAT grew 2.4% yoy, thanks to solid earnings growth from the life segment and easing impairment pressure in the asset management segment.

Management remains optimistic that the company will deliver positive NBV growth in 2025, driven by continued margin expansion on the existing margin tailwinds.

Maintain BUY. Target price: HK$61.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Keep a watch on the agency channel

We see lower 1Q25 agent numbers qoq and FYP yoy as a potential area of concern leading up to changing agency commission regulations.

With agency comprising 80% of FY24 NBV, we think it is key to agent growth that agent income is not overly impacted by regulations and falling FYP.

A ramp-up of sales campaigns could help negate high-base effects for FYP growth, leading up to a potential guaranteed rate cut in early-mid 3Q25F.

Reiterate Add. Our SOP-based TP is cut to HK$57 (previously HK$66).

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 1289E7F26A

[winston]

not vested

Ping An builds US$23b stake in Chinese banks on dividend bet

Ping An has since late 2024 boosted its holdings of Hong Kong-listed stocks in some of the nation’s largest lenders to a combined HK$180 billion (US$23 billion or RM97.2 billion).

Its purchases had pushed its stake in the Hong Kong-listed shares of Industrial & Commercial Bank of China Ltd to as high as 18%, while holdings in China Merchants Bank Co and Agricultural Bank of China Ltd rose to at least 15%.

Its total holdings in the firms are substantially lower when also including their Shanghai-listed shares.

At the same time, Chinese banks are suffering under record low margins and slow profit growth. The years-long property crisis has also dented balance sheets because of jump in bad loans.

Ping An’s total investment portfolio of insurance funds is 5.9 trillion yuan (US$822 billion or RM3.5 trillion).

Source: Bloomberg

https://theedgemalaysia.com/node/760328