Ping An of China (601318): Net profit + 68% value ratio increased significantly
Investment points: Benefiting from the annual adjustment and reversion in 2018 and the recovery of the equity market in the first quarter, net profit in the first half of the year increased by + 68%, and the annualized total investment yield was +1.
5ppt to 5.
5%, life insurance, property insurance fees and commission rates were changed to 15%.
NBV was initially +4.
7%, the new business value rate increased significantly5.
7ppt to 44.
The value operation level is still significantly ahead of its peers. The “continuous market” rating is Ping An’s 2019 interim report performance: 1) Net profit attributable to mothers was USD 97.7 billion, of which + 68%, of which Q2 exceeded + 61%.
2) Attributable operating profit of US $ 73.5 billion, + 24% for the whole year, of which + 26% before and after Q2.
3) The net assets attributable to the mother is RMB 62.53 million, + 12% compared with the beginning of the year.
4) NBV up and down +4.
5) EV increased by 11% compared with the beginning 厦门夜网 of the year, and ROEV (annualized) 11.
Net profit of life insurance business increased by 108%, and operating profit increased by 36%; average price of life insurance service fees.
1) Net profit attributable to life insurance, property insurance, banking, asset management, financial and medical technology businesses increased by 108%, 101%, 15%, -19%, -33%, respectively.
2) The remaining marginal amortization increased by 21%; the remaining marginal balance was US $ 867.4 billion, an increase of 10% earlier.
3) One of the reasons for the high growth rate of profit in life insurance is that all 105 trillion in blood sugar reduction in 18 years were turned back. Life insurance and property insurance yields were 3% and 6%, respectively.
The proportion of life insurance, property insurance fees and commission rates increased by 15%, and changed to 2ppt and 7ppt respectively, which also had a positive effect on the reduction of income.
Ping An Life: NBV marginal income +5.
7ppt to 44.
1) NBV in the first quarter and the second quarter are +6 respectively.
2) New insurance premiums for individual insurance channels are -15% per year, and NBV has increased by more than 2%.
The new business value ratio of individual insurance channels increased by 5%.
9ppt to 58.
3) The NBV margin for all types of products in individual insurance channels has been expanded, including long-term guarantee margin +2.
3ppt to 97.
3%, long-term savings deposit increased by 19.
5ppt to 63.
4) Agent 128.
60,000, compared with -9 at the beginning of the year.
3%, -2% at the end of the earlier quarter.
The average monthly manpower is 123.
50,000 people, -5 a year.
The agent’s per capita income has been changed from 6870 yuan / month to 4% to 6617 yuan / month. We expect that this will be mainly due to the continuous decrease in insurance premiums of property insurance products due to the continuous integration of newspapers and banks.
NBV per capita exceeded expectations by +8.
5) The second quarter is the traditional off-season of insurance companies, and the base in the same period of 2018 is relatively high. We expect that labor and new insurance premiums will resume growth in the second half of the year. Restructuring NBV can still achieve 8% -10% growth.
Ping An Property & Casualty Insurance: The comprehensive cost rate increased slightly, and the fee and commission rates attempted to continue to decline.
1) Property insurance premiums increase by 9 per year.
7%, the market share temporarily decreased to 0.
2ppt to 19.
Auto insurance market accounted for previously + 1ppt to 23.
2) The overall comprehensive cost rate is 96.
6%, +0 per year.
8ppt; of which, guaranteed insurance is affected by the higher level of compensation for the stock business, with a combined cost rate of +5.
3) Adopting the “combination of newspapers and banks”, the replacement of program fees and commission rates will reduce the scale, leading insurance companies have strong ability to control fees, and profit growth promotes continuous improvement.
Investment: Benefiting from the surge in equity market in the first quarter, the total investment yield was +1 for half a year.
Net investment yield 4.
5% each time +0.
1) Total investment scale 2.
96 trillion yuan, +5 from the beginning of the year.
8%, of which cash and time deposits / fixed income / equity and long-term equity investment / investment properties and others accounted for -0 earlier.
4ppt / -0.
9ppt / + 1.
4ppt / -0.
2) In the first half of the year, the company increased the distribution of fixed-income assets such as treasury bonds. The asset duration improved and extended, and the duration gap must be reduced.
Ping An Finance and Medical Technology: Technology revenue of 38.4 billion yuan, + 34% in ten years.
1) Among them, Ping An Good Doctor’s revenue for ten years + 102% to 23 trillion.
Car home revenue for ten years + 24% to 39 trillion, profit for ten years + 23% to 16 trillion.
2) As of the end of the first half of the year, the affiliated technology companies are estimated to have reached $ 70 billion.
3) We expect the technology sector profit to reach -33%, mainly due to the company’s increased investment in core basic technology.
Future technology will further empower the financial, medical, automotive, and smart city ecosystems and continue to release profits, and it is estimated that the space is expected to continue to increase.
EV is stable and high growth, it is estimated that it is still low.
We believe that Ping An of China should copyright “corporate governance premium + life insurance premium + financial group premium + technology premium”, and it is expected that high premiums will persist.
On August 16, 2019, the corresponding 2019 E P / EV is only 1.
32 times, giving 1.
5 times the 2019 PEV, corresponding to a reasonable expected interval of 92.
08 yuan, estimated to remain low, “continuous market” rating.
Risk warning: interest rates are trending downward; stock market fluctuates sharply; guaranteed growth is less than expected.