Ping An of China (601318) Quarterly Review: Accounting Standards Boost Profits, Optimize Premium Structure, Enhance NBV

Ping An of China (601318) Quarterly Review: Accounting Standards Boost Profits, Optimize Premium Structure, Enhance NBV

I. Event Overview On April 29, 2019, Ping An of China released the first quarter report, and the company achieved net profit of 455 in the first quarter.

1.7 billion, an annual increase of 77%; operating profit attributable to the parent company was 314.

1.9 billion, an increase of 21% in ten years.

Second, analyze and judge the release elasticity of the I9 indicator, the operating profit increases steadily. The company’s net profit attributable to its mother has increased by more than 70%, and the growth rate has exceeded expectations. The company’s use of new accounting standards has increased the elasticity of accounting profits.

The stock market grew strongly in the first quarter, and changes in the fair value of investment assets amplified the variability of net profit.

In terms of operating profit, it maintained a steady growth rate of more than 20%.

The number of users has maintained steady growth, and the cross-selling ability of the five major ecosystems is strong. The number of Ping An individual customers is about 1.

9.1 billion, an earlier increase of 3.

6%; Internet users 5.

6.1 billion, an earlier increase of 4.

2%; 11 million new customers in the first quarter, of which 31.

3% of Internet users from the five major ecosystems.

Life insurance premiums improved in the first year, and the value of new business maintained growth. The company proactively reduced the sales of short-term storage products in the first quarter. It is expected that long-term protection and long-term protection will save sales of core products.

Affected by the active transformation, the premiums of life insurance and health insurance in the first quarter gradually decreased by 10 in the first quarter.

8%.

However, benefiting from the improvement in premium structure, the value of Ping An’s new business has increased by 6 per year.

1%.

The premium growth rate was supplemented by the program rate. Property insurance profits exceeded the sharp increase in the first quarter. Passenger car sales were sluggish. The growth rate of Ping An Property and Casualty Insurance premiums continued to grow steadily. In the first 武汉夜网论坛 quarter, Ping An Property and Casualty Insurance premiums increased by 9%.

5%.

In terms of cost control, 97% of the comprehensive cost of property and casualty insurance was invested by the industry.

Benefiting from the decrease in handling fees, Ping An Auto’s net profit increased by 77% annually.

Equity market rebounded and investment yield improved. The market recovered in the first quarter, and the company’s investment-side net investment yield reached 3.

9%, increasing by 0 every year.

2 units; total investment income increased by 5.

1%, increase by 1 every year.

4 units.

3. Investment advice In terms of life insurance, the company proactively reduced short-term products, and the growth rate of premiums in the first year was affected to some extent. However, due to the improvement of the structure, the new 重庆耍耍网 business value of the company has been increasing, and the structural optimization brought about by the change in premiums has become apparent.The reduction of the plan fee has improved the level of net profit of property insurance. In the long run, the improvement of property insurance profit has continued; on the investment side, the recovery of the secondary market trend has clearly promoted the improvement of the overall yield.

The company is expected to have a PEV0 of 19 years.

98X, benchmarking AIA1.

The 5-2X estimate is still room, maintaining the recommended level.

Fourth, risk warning: New orders are selling less than expected.

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