Ping An of China (601318): Comprehensive layout of the ascending track stabilizes dividends

27/03/2020 0 Comment

Ping An of 重庆耍耍网 China (601318): Comprehensive layout of the ascending track stabilizes dividends

Investment Highlights: This report discusses Ping An of China from three dimensions, one is the dimension of the industry track chosen by the company, the other is the dimension of the company’s path realization, and the third is the positioning and growth dimension of the company’s segmented business.

The insurance circuit is still in an upward path, and from a historical perspective, the sector has a cost perspective.

At present, the overall insurance market is still on the rise. The first is the increase in the proportion of guaranteed products, the endogenous capital can support business development, and the second is the optimization of the competitive environment under strict supervision to support the development of leading enterprises.

The industry-guaranteed products maintained a high growth rate, and their proportion in the overall premiums gradually increased, but the insurance density and depth of benchmarking the overall residents in other overseas areas still need to be tapped.

Looking back at the recent driving factors of the sector, the estimated trend of insurance PEV basically coincides with the interest rate cycle, and at the same time, the fluctuation of the equity market has gradually significantly promoted the role. From the perspective of industry benchmarking, the ROE of the insurance sector has steadily increased, and PE is at a low level.

The Group’s comprehensive financial group layout, the balanced development of all business lines, the performance growth rate is significantly ahead of the industry.

Ping An, as a typical integrated financial group, presents two major characteristics. One is the forward-looking strategic layout, which integrates technological advantages on the original financial license advantages, and balances the development of light and heavy assets. The second is the maximization of business synergy and the formation of business collaborations to form the group.Full internal cross-selling to serve customers in depth.

Diversified products have accumulated a rich customer base and continued to be supported by leading fintechs. 1% of annual revenue is invested in scientific and technological research and development to stimulate continuous innovation. The company’s practical and flexible management structure and diversified incentive plans also help the Group’s value.Unified implementation.

The insurance business provided stable operating profits, the proportion of fintech contributions increased, and the comprehensive business led to stable dividend income, which improved the estimated hub.

Ping An Life Insurance has a significantly higher ROEV than other insurers, with an average ROEV of 23 in 2011-18.


Divide the core competitiveness of Ping An Life Insurance from the breakdown of supply and demand until the Group’s middle-class and above customers reached 1.

300 million people, accounting for 72% of total customers.

0%, high-quality customers drive high insurance demand; the company accordingly maintains a diversified product supply, appropriately increases the proportion of guaranteed products, and takes the lead in developing a stable and high-quality agent team in the industry. In the future, it will put quality assessment first.

Property insurance in a relatively mature industry maintains stable growth and profitability, and can be used as the group’s cash cow business. Banking and big asset management business, as traditional businesses, have opened up space on the basis of retail transformation. Fintech has continued to invest inThe new circuit is expected to become a future star business.

The overall overall business group’s operating profit has maintained steady growth, and dividends have gradually been linked to operating profit. Future value growth will bring stable and continuous dividends, which is conducive to the improvement of the estimated hub.

Investment suggestion: Keep the leading position of traditional financial business, enable finance with technology, increase customer conversion rate and average profit per customer, accumulate driving force for operating profit growth, and maintain a BUY rating.

Due to the adjustment of the equity market, the company’s profit forecast was lowered, and the EPS for the year 19-21 was 8.

43, 8.

65 and 10.

02 yuan (previous forecast was 8.

56, 8.

91 and 10.

32 yuan).

Under the segment assessment method, life insurance uses P / EV multiples. For standard AIA, 四川耍耍网 taking into account the existing group’s ROEV development stage, historical estimates of the hub correspond to 1 for 2020.

35X, property and casualty insurance, securities and trusts use comparable companies to benchmark PB and PE conversions in 2020. Banking and fintech businesses use market capitalization, and the total equivalent of the segment is 106.

4 yuan, the follow-up group will further enjoy the premium from synergistic business and debt-side stability drive, maintaining a BUY rating.

Risk reminders: Synergies of integrated financial groups are weakening; Life insurance business transformation is less than expected, and agent throughput is limited; Input and investment after Fintech expansion is less than expected; Capital market scale is expanding and long-term interest rates are falling rapidly