<h1 class="pgc-h-arrow-right" > first look at Ping An's current revenue and profit</h1>
In the first three quarters of 2021, Ping An Group's operating profit attributable to shareholders of the parent company increased by 9.2% year-on-year to RMB118.737 billion, and net profit attributable to shareholders of the parent company was RMB81.638 billion, down 20.8% year-on-year, mainly due to adjustments such as the Company's impairment of investment assets related to Huaxia Happiness Foundation Co., Ltd. ("Huaxia Happiness"). In the first three quarters, Ping An's operating income was 904.629 billion yuan, down 1.36% year-on-year, and the decline was not obvious. At present, the total market value of Ping An of China is 906.2 billion:
Ping An of China according to the net profit of the dynamic PE of 8.32, according to the operating profit to calculate, Ping An of China dynamic PE of 5.72, you can see that Ping An of China's price-to-earnings ratio is still quite low, and it is extremely undervalued.
<h1 class="pgc-h-arrow-right" > benchmarked against the world's largest insurance company, United Health</h1>
At present, the total market value of United Health in the United States is 434.2 billion US dollars, about 27810.51 trillion yuan market value, the current price-earnings ratio of United Health in the United States is as high as 28.15 times, far more than all domestic insurance companies, it can be found that the PRICE-earnings ratio of US stocks for insurance companies is generally a higher multiple. Let's take a look at the performance of United Health:
United Health Q9 operating income reached 213.9 billion US dollars (1370.0295 billion yuan), revenue increased by 11.57%, net profit of 13.21 billion US dollars (84.61 billion yuan), net profit increased by 0.17%, it can be found that the performance of United Health has grown relatively fast, but the net profit has stagnated, attributed to low-speed growth.
Comparing United Health with Ping An of China, it will be found that the revenue of United Health is 470 billion yuan higher than that of Ping An of China, but the net profit is almost the same, while the market value of United Health is indeed as high as 2.78 trillion yuan, and Ping An of China only has a mere 0.9 trillion yuan, and the total market value is 3 times different.
<h1 class="pgc-h-arrow-right" > what will happen to Ping An of China's market value of 10 trillion yuan in the future? </h1>
Suppose Ping An of China maintains its current price-to-earnings ratio unchanged, That is, the net profit PE is 8.32, then the market value of 100,000 is equal to 11 times the total market value of Ping An of China now, that is, the annual net profit of Ping An of China is to reach 1.2 trillion, which is a more terrifying concept, and the operating income will reach 13.4 trillion yuan proportionally, which is also a very scary concept, because when Ping An reaches such a high level of income and net profit, Ping An of China will be a giant, after all, the most profitable listed company in A shares, the annual profit of the Industrial and Commercial Bank of China is about 320 billion 。 Therefore, in the short term, the possibility of ping an's total market value exceeding 10 trillion yuan is to increase the level of price-earnings ratio. For example, PE reaches 30 times:
Then if ping an's total market value reaches 10 trillion yuan, the annual net profit needs to reach 330 billion yuan, and the total revenue is about 3 trillion yuan according to the proportion, which is actually achievable. Because at present, Ping An's net profit in 2019 and 2020 has reached about 150 billion, only double the distance from 330 billion. The most important thing is that if an industry ushers in a time of rapid development, then the price-earnings ratio will be generally high.
So everything is only a chance for the rapid development of the industry, the depth of the density of insurance in China is far less than the global average, and the gap with developed countries is even greater, so the future high-speed development, the possibility of the P/E ratio is still relatively large, with reference to the previous new energy vehicles, similar to Changan Automobile, etc., the P/E ratio is generally low, after taking the new energy track, the P/E ratio is generally raised a lot.
#中国平安 #