Ping An of China (601318) 2019 First Quarterly Report Review: Significant increase in value rate, investment performance under new norms, contribution to profit soaring

Ping An of China (601318) 2019 First Quarterly Report Review: Significant increase in value rate, investment performance under new norms, contribution to profit soaring

Matters: Ping An of China announced the 2019 quarterly report.

In Q1 2019, Ping An of China achieved a net profit of 4.55 million yuan, an increase of 77 year-on-year.

1% (3.18 million yuan under the old regulations, +4 for the whole year.

1%); realized operating profit of US $ 34.1 billion, + 21% a year; new business value in the first quarter was US $ 21.6 billion, +6 a year.

1%; net assets attributable to mother at the end of the quarter were 5,991 trillion, an increase of 7 earlier.

7%; annualized total investment income injection 3.

8% / 5.

1% (before / after IFRS9 implementation), increasing by 0 every year.

1 piece; net investment income increased by 3.

9%, a year to raise 0.


Comment: Proactively adjust product structure, focus on value, and significantly increase the value of new business.

In the first quarter of 2019, China Ping An’s life insurance business realized a total premium of 2050 ppm (the original premium caliber), which is +8 per year.

1%, of which 599% of new orders for life insurance business are 10% for 10 years.


The new business value in the first quarter was 216 trillion, and the quarter was +6.

1%, the new business value rate increased significantly5.

9 up to 36.


Initially for the impulse-scale products whose main sales value ratio reached in the past 1 quarter, this year proactively adjusted the product structure, dilute the beginning, and focus on the operation of high-value products.

Operating profit grew steadily, benefiting from the recovery of the equity market and a sharp increase in net profit.

In the first quarter of 2019, China’s Ping An’s net profit was 45.5 billion, 77 per year.

1%, operating profit is 3.41 million yuan, + 21% for the whole year.

The net profit of life insurance and health insurance attributable to mothers was 31 billion, a further increase1.

23 times, of which about 11.5 billion contribute to short-term investment income, 1.

6 trillion contributes to changes in the discount rate.

Excluding the contribution of short-term investment fluctuations and changes in discount rates, the operating profit of the life and health insurance business was 196.

50,000 yuan, an increase of 19 in ten years.


The reason for the short-term investment changes to contribute substantial profits is the significant recovery in the annual equity market and the new accounting standards increase the impact of changes in fair value on profits.

Injected annualized total investment income in the first quarter 5.

1%, net investment income return 3.

9%, a year to raise 0.

2pct, the initial increase in investment income for the allocation of long-term equity investment assets.

The pressure on blood pressure eased, and the growth rate of the property and casualty insurance business was greatly reversed.

In the first quarter of 2019, the property insurance business realized the original insurance 苏州桑拿网 premium income of 6.92 million yuan, +9 per year.

5%, including auto insurance premiums of 478.

3 ‰, 8 per year.4%, non-auto insurance premium 213.

9 trillion, ten years +12.


The net profit of the property and casualty insurance business was 580,000 yuan, a year-on-year increase of 77.

3%, initially because the fee rate has dropped and increased more than the decline, investment income has increased and also contributed.

In the first quarter, the comprehensive cost estimate of property insurance reached 97%, exceeding the growth rate by one.

One single, preliminary increase in management fee rate other than the program fee caused an increase in the comprehensive fee rate.

Investment suggestion: Ping An of China realized positive growth of NBV in the first quarter under the initiative to adjust the 西安耍耍网 product structure. The Group’s various business segments and insurance product structure are stable and diversified, and the company is expected to have relatively stable profit returns and value growth.

We expect China Ping An’s BPS to be 32 in 2019-2021.



59, EPS is 8.



87 (Democratic predictors) 7.




The possible embedded value of Ping An of China in the next 3 years is expected to be 65, 76, and 89 yuan, and the 2019 target price of 104 yuan is maintained according to the segment forecast method, corresponding to a PEV of 1.

6 times, maintaining the “strong push” level.

Risk warning: New business growth is less than expected, the equity market is volatile, and the downward pressure on the economy is increasing.