Ping An of China (601318): Outstanding performance of financial retail aircraft carrier highlights value

Ping An of China (601318): Outstanding performance of financial retail aircraft carrier highlights value

Event: Ping An of China achieved operating revenue of 3782 trillion (YoY + 21) in the first quarter of 2019.

5%), operating profit of 34.1 billion (+ 21% YoY), and net profit attributable to the parent company of 45.5 billion (+ 77% YoY).

1%).

We believe that the company’s core marginal changes in 2019 include: (1) New order growth is improving month by month, and NBV growth is better than expected.

New orders for life and health insurance business fell in line with expectations, and the value of new business increased by 6.

1% exceeded market expectations.

(2) Significant improvement in investment income and significant increase in net profit.

In 2018, the company implemented the IFRS9 standard, benefiting from the high recovery of the secondary market in the first quarter, and the increase in equity investment income penetration.

(3) The proportion of overseas institutions has steadily increased.

As of the end of the first quarter, the shareholding ratio of mainland shares was 6 from the end of last year.

56% increased to 7.

46%.

The continuous optimization of the company’s shareholder structure helps the company’s long-term healthy and stable development.

The growth rate of new orders improved month by month, and the growth rate of NBV was better than market expectations.

In Q1 2019, the company’s new single premiums were US $ 58.7 billion, a year-on-year decrease of 11%. The monthly single-month growth rate narrowed month by month. Benefiting from the company’s 杭州桑拿网 focus on high-value products, it actively adjusted its product structure and maximized the value of new business.

9% to 36.

8%, driving the company’s new business value to increase by 6.

1% to 216 ppm.

The number of agents has improved, and the number of agents at the end of the first quarter was 131.

10,000 people, down 7 from the beginning of the year.

5%, mainly due to the company’s improvement of agent channels and agent quality.

In the long run, a high-quality and solid agent team is one of the company’s strongest core competitiveness.

Significant improvement in investment income and significant increase in net profit.

In 2018, the company implemented new standards and benefited from the recovery of the equity market in Q1 2019. In Q1 2019, the company realized net profit attributable to its mother of 北京夜网 USD 45.5 billion, an increase of 77.

1%, the growth rate is obvious, through the recovery of equity market company investment income is expected to maintain a steady return.

The net profit attributable to the shareholders of the parent company if the financial instrument accounting standards before the amendment were implemented by insurance subsidiaries.

18 ppm, an increase of 4 per year.

2%, maintaining stable development.

Retail financial giant, fintech escorted.

As of Q1 2019, the company’s individual customers1.

9.1 billion people, an increase of 3 earlier.

6% of Internet users 5.

6.1 billion people, an increase of 4 earlier.

2%.

The advantages of cross-selling and full financial licenses in retail clients continue to emerge.

In addition, the financial technology business continued to deepen its strategy, and Ping An Good Doctor, Financial One Account, and Ping An Medical Insurance Technology maintained rapid development.

Among them, Lufax has now completed the Series C financing, with an estimated investment of 39.4 billion US dollars.

Maintain BUY-A investment rating.EPS of Ping An of China is expected to be 7 in 2019-2021.

1 yuan, 8.

7 yuan, 9.

5 yuan, corresponding to 2019 P / EV is 1.

2x, maintain BUY rating, 6-month target price of 95 yuan.

Risk warning: the equity market fluctuates sharply, regulatory policies are uncertain, and premium income has increased significantly.