On February 21, Bank Of Hangzhou Co.Ltd(600926) announced that China The Pacific Securities Co.Ltd(601099) life insurance (hereinafter referred to as “CPIC life insurance”) or planned to liquidate its Bank Of Hangzhou Co.Ltd(600926) (600926. SH) shares.
Over the past 12 months, CPIC life insurance has sold (planned to) reduce its Bank Of Hangzhou Co.Ltd(600926) shares for three consecutive times. In response to this continuous reduction, China Pacific Insurance (Group) Co.Ltd(601601) had previously responded exclusively to the Chinese reporter of the securities firm, ” China Pacific Insurance (Group) Co.Ltd(601601) highly recognizes the good performance created by Bank Of Hangzhou Co.Ltd(600926) since taking shares. This reduction is based on the needs of strategic allocation and belongs to conventional investment operation.”
From the perspective of the reduction time, several sales of CPIC life insurance belong to “rising and selling”. The cash out amount of two holdings reduction in the past year has reached about 1.8 billion yuan. The Chinese reporter of the securities firm estimated that CPIC life insurance participated in the capital and share increase of Bank Of Hangzhou Co.Ltd(600926) in 2009 and increased its holdings several times during the period. The floating profit of the investment may exceed 2.5 billion yuan in more than 12 years.
Bank Of Hangzhou Co.Ltd(600926) landed on the Shanghai Stock Exchange in 2016. By the end of September 2021, the bank’s total assets were 1330.031 billion yuan, an increase of 13.75% over the end of the previous year; From January to September 2021, Bank Of Hangzhou Co.Ltd(600926) had an operating revenue of 22.377 billion yuan, a year-on-year increase of 19.97%; The net profit attributable to the shareholders of the parent company was 7.036 billion yuan, a year-on-year increase of 26.16%; The data indicators of non-performing rate and provision coverage rate at the end of the period have reached the best in recent two years.
after cashing out up to 1.8 billion yuan, will you clear your bank equity?
On February 21, Bank Of Hangzhou Co.Ltd(600926) issued the announcement of share reduction plan for shareholders with less than 5%, which showed that Bank Of Hangzhou Co.Ltd(600926) received the letter on share reduction plan from shareholder The Pacific Securities Co.Ltd(601099) life on February 21, 2022. The number of holdings of CPIC life insurance this time is no more than 117850130 shares, with a reduction ratio of 1.99%. The reduction period of competitive trading is from February 25, 2022 to August 24, 2022.
As of the disclosure date of the announcement, CPIC life insurance held 117850130 Bank Of Hangzhou Co.Ltd(600926) shares, accounting for 1.99% of the total share capital of Bank Of Hangzhou Co.Ltd(600926) ordinary shares. Among them, CPIC life insurance obtained 60127617 shares before IPO; 57722513 shares were obtained by other means. This also means that if the reduction ratio reaches 1.99%, CPIC life insurance will withdraw from the list of Bank Of Hangzhou Co.Ltd(600926) shareholders.
it is worth mentioning that this reduction is also the third reduction of Bank Of Hangzhou Co.Ltd(600926) shares of CPIC life insurance in 12 months. By the end of 2021, China Pacific Insurance (Group) Co.Ltd(601601) was also the seventh largest shareholder of Bank Of Hangzhou Co.Ltd(600926) , holding 235 million shares, with a shareholding ratio of 3.97%. It was sold twice last year, cashing out about 1.842 billion.
From April 12, 2021 to July 28, 2021, CPIC life insurance reduced 59.3 million shares, with a reduction ratio of 1%; The reduction price range is 11.99 ~ 17.38 yuan / share, that is, it has reduced Bank Of Hangzhou Co.Ltd(600926) 5929997 shares through centralized bidding, with a total cash out of 914 million yuan.
From August 9, 2021 to January 27, 2022, CPIC life insurance reduced its holdings of 58.05 million shares, with a reduction ratio of 0.98%; The reduction price range is 13.58 ~ 15.99 yuan / share, and the total cash out of this reduction is 788 ~ 928 million yuan.
According to the third quarterly report of China Pacific Insurance (Group) Co.Ltd(601601) 2021, the company’s main revenue was 350.934 billion yuan, a year-on-year increase of 2.64%; The net profit attributable to the parent company was 22.686 billion yuan, a year-on-year increase of 15.46%; The debt ratio at the end of the quarter was 88.21%, and the investment income was 73.664 billion yuan.
the floating profit of more than 12 years of investment exceeds 2.5 billion yuan
The announcement of also shows that the reason for the proposed reduction of China Pacific Insurance (Group) Co.Ltd(601601) is the need of its own strategic arrangement and asset allocation.
For the continuous reduction of holdings in the past year, China Pacific Insurance (Group) Co.Ltd(601601) had previously responded exclusively to the Chinese reporter of the securities firm, ” China Pacific Insurance (Group) Co.Ltd(601601) highly recognized the good performance created by Bank Of Hangzhou Co.Ltd(600926) since taking shares. This reduction is based on the needs of strategic allocation and belongs to conventional investment operation.”
however, the investment Bank Of Hangzhou Co.Ltd(600926) is a relatively successful equity investment of CPIC life insurance. Chinese reporters from securities companies have also reported before:
In 2009, Bank Of Hangzhou Co.Ltd(600926) increased its capital and shares for the seventh time, issuing 350 million new shares at the price of 13 yuan per share; Among them, CPIC life insurance spent 1.3 billion yuan to subscribe for 100 million shares.
In 2014, Bank Of Hangzhou Co.Ltd(600926) carried out the conversion of capital reserve into share capital, increased by 2 shares for every 10 shares, and the number of shares held by CPIC life insurance increased to 120 million shares.
In October 2016, Bank Of Hangzhou Co.Ltd(600926) successfully landed in a shares. Then, in Bank Of Hangzhou Co.Ltd(600926) 2017 and 2018 profit distribution plans, CPIC life insurance obtained 115.2 million shares by converting capital reserve into share capital.
The most important thing for insurance funds to invest in bank equity is its stable dividend income. Statistics show that over the past few years, CPIC life insurance has obtained a total cash dividend income of about 420 million yuan from Bank Of Hangzhou Co.Ltd(600926) . This means that only through the cash dividends over the years and the first round of reduction and cash out completed from April to July last year, the income obtained by CPIC life insurance has covered the cost of shares.
As of February 21, Bank Of Hangzhou Co.Ltd(600926) closed at 15.54 yuan / share. If it is roughly estimated at this price, the floating profit of Bank Of Hangzhou Co.Ltd(600926) investment of CPIC life insurance has exceeded 2.5 billion yuan, and the investment return in 12 years has exceeded 165%.
Recently, at an investor interaction forum, investors asked how to view the future development prospects of insurance companies? Is the current valuation of the company low? China Pacific Insurance (Group) Co.Ltd(601601) the board secretary said, “at present, China’s insurance industry as a whole is in a period of deep transformation, which may be an important reason for the recent pressure on the stock price performance of the insurance sector. According to the embedded value multiple (P / EV) index commonly used in capital market valuation, the current valuation level of the company is at an all-time low.”
In its view, macroeconomic development, the improvement of residents’ income, the change of population structure, the transformation of government functions and the innovation of social governance mechanism will inject sustained impetus into the long-term development of China’s insurance market. The occurrence of covid-19 epidemic has further stimulated the public’s awareness of insurance and the demand for health services. China’s insurance market will remain one of the most dynamic and fastest growing markets in the world.
Bank Of Hangzhou Co.Ltd(600926) credit supply is expected to grow steadily in 2022
After the lunar new year this year, the market of the banking sector has warmed up, and the share prices of many banks have risen day after day. As of the closing on February 21, 2022, Bank Of Hangzhou Co.Ltd(600926) had a share price of 15.54 yuan / share, up 2.44% from the previous day.
Note: by the end of the third quarter of 2021, two of the top ten shareholders of Bank Of Hangzhou Co.Ltd(600926) had reduced their holdings
Bank Of Hangzhou Co.Ltd(600926) was founded in September 1996. At present, Bank Of Hangzhou Co.Ltd(600926) has more than 200 branches, based in Hangzhou, covering developed economic circles such as the Yangtze River Delta, the Pearl River Delta and the Bohai Bay.
By the end of September 2021, Bank Of Hangzhou Co.Ltd(600926) had total assets of RMB 133031 billion, an increase of 13.75% over the end of last year. From January to September last year, the operating revenue of Bank Of Hangzhou Co.Ltd(600926) was 22.377 billion yuan, a year-on-year increase of 19.97%; The net profit attributable to the shareholders of the parent company was 7.036 billion yuan, a year-on-year increase of 26.16%; The data indicators of non-performing rate and provision coverage rate at the end of the quarter have reached the best in recent two years.
China Securities reporter noted that recently, including China Industrial Securities Co.Ltd(601377) , gae Yi property, Ning Quan assets, Orient Securities Company Limited(600958) asset management, Taikang asset management, Penghua Fund, China Merchants Fund, Hong Kong Innovation Fund, Shanghai Morgan fund, East Alfa fund, Jianxin fund, China Life Insurance Company Limited(601628) , Chinese people’s pension insurance, thousand plus capital, Shanghai investment and investment management, APS asset management, Nearly 30 institutions including Shenwan Hongyuan Group Co.Ltd(000166) securities, Guosen Securities Co.Ltd(002736) , GF fund, Changjiang Securities Company Limited(000783) asset management, Nomura Oriental international securities, Haitong Securities Company Limited(600837) asset management and Ping An Securities investigated Bank Of Hangzhou Co.Ltd(600926) .
Research institutional investors paid attention to the focus and starting point of Hangzhou’s credit supply under the background of weak credit supply and demand pattern and steady growth, Bank Of Hangzhou Co.Ltd(600926) introduced its plan and arrangement of credit supply in 2022, and said that it is expected to maintain the increment of last year: from the demand side, first, strengthen credit reserves, arrange the supply of key industries, and second, improve the credit utilization rate of customers, Accelerate the implementation of non invested businesses; From the perspective of supply side, first, seize the air outlet of infrastructure construction and invest locally; Second, strengthen real economy services and practice the concept of Inclusive Finance; Third, focus on key customers and meet the diversified financing needs of enterprises.
Meanwhile, the bank expects the deposit interest rate to remain stable in 2022; In terms of investment in public industries, according to the national policy guidance and their own transformation needs, we will steadily increase support for key areas such as manufacturing, small and micro enterprises, especially credit small and micro enterprises, and improve the level of financial support for the high-quality development of the real economy in 2022.
