Macquarie released a research report that the valuation of Ping An of China (02318) is nearly a record low, the market unanimously gave a "buy" view to the stock, the bank resumed coverage of the company, but gave a "outperform" rating, with a target price of HK$50.
(Generally speaking, Hong Kong stocks are more undervalued than the renminbi, and should theoretically maintain A shares 1.1 times that of Hong Kong stocks)
The bank believes that the market is overly optimistic about Ping An's new business value (NBV) and return on equity over the next three years. Due to the decline in NBV margin and the decline in investment returns, the bank expects Ping An to continue to receive a downward valuation revaluation in the medium term. Even if the stock price is attractive to the valuation of the company in terms of intrinsic value, the stock has a potential downward trend in terms of sensitivity analysis.
Macquarie said the value of Ping An's new business is expected to contract again. Due to the decline in demand for private health insurance, the proportion of first-year premium income of regular payment products has shrunk from 57% in 2020 to 50% in 2023. As the ongoing product mix shifts towards low-margin savings products, NBV margins are expected to fall from 38.9% in 2020 to 33.9% in 2021 and further to 30.7% in 2022. The value of new business in the coming year will fall by 16% and 11% respectively year-on-year
Ping An of China is the first group in China that integrates financial businesses such as insurance, banking and investment. Good layout, can make money ~
Ping An can be described as a large number of customers and stable. Ping An Insurance agent has a very good set of customers for developing and maintaining customers. Many of them are old customers for more than ten or twenty years.
Related to the number of years of many insurances, many education and childcare insurance, serious illness insurance, are based on a period of ten years and twenty years, and some medical insurance is paid for 20 years and insured for life.
As of the end of June 2021, the number of individual customers of Ping An of China exceeded 223 million, and the proportion of individual customers holding contracts from multiple subsidiaries increased to 38.7%. In the first half of 2021, the scale of comprehensive financial financing for group business increased by 36.1% year-on-year.
With comprehensive insurance for each customer, and at the same time a long period of time, long-term stable customers, it is difficult for the insurance business not to make money
The insurance business is all actuarial, and the insurance company is in the dominant position, which can basically be said to be a business that makes no loss
However, Ping An's investment really collapsed!!! Cash flow is good though.
In addition, the added value of the user ecosystem can be described as immediate. Ping An Golden Butler and Ping An Good Doctor have brought medical, technological and financial benefits to Ping An
By the end of June 2021, Ping An Smart Healthcare had served 170 cities, empowering more than 40,000 medical institutions and benefiting about 950,000 doctors. Among Ping An's more than 223 million individual customers, nearly 62% of them also use the services provided by the medical and health ecosystem, with an average number of customer contracts of 3.2 and an average customer AUM of 41,000 yuan, which is higher than that of individual customers who do not use the services of the medical and health ecosystem. Ping An Life insurance has created the "Ping An Zhen Enjoy RUN" health service plan, providing nearly 30 health management services in the context of health management, sub-health management, chronic disease management, disease management and other scenarios, providing customers with an accompanying heart-warming guardian service experience.
Dividends twice a year, trillions of revenue, hundreds of billions of parents, how to make money! How many A shares can be out of the right?
Correct your mindset, no pole Tai Lai!
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