Is the share price undervalued? How is the reorganization of Founder Group progressing? Besides China Fortune Land Development Co.Ltd(600340) , how much risk exposure does the real estate business have?
On March 18, Ping An Insurance (Group) Company Of China Ltd(601318) held the 2021 annual online performance conference, and Ping An Insurance (Group) Company Of China Ltd(601318) a group of executives responded to the above hot issues one by one.
Today, Ping An Insurance (Group) Company Of China Ltd(601318) rose 5.34%, with a cumulative increase of 12.38% in the past three trading days.
” I believe the market will recognize the value of Ping An”
Recently, the popularity of the A-share insurance sector has been depressed, and the valuation level of the sector has fallen to an all-time low. For the current stock price performance of the company, Ping An Insurance (Group) Company Of China Ltd(601318) co CEO and CFO Yao Bo said: “the current stock price is at a historical low, and we believe that the market will eventually realize the value of Ping An.”
Yao Bo said that the decline of the company’s share price in the past year was related to external factors on the one hand. Under the general pressure of white horse stocks and blue chips, Ping An Insurance (Group) Company Of China Ltd(601318) ‘s share price performance is not an example. Since this year, with the fluctuation of the external environment, the whole market has strong risk aversion. But at the same time, we should see that the fundamentals of China’s economy are stable at present. The implementation of a series of steady growth measures has laid a firm foundation for the annual economic growth goal. Therefore, the company is full of confidence in the future performance of blue chips in the capital market.
On the other hand, Ping An Insurance (Group) Company Of China Ltd(601318) ‘s share price performance is also affected by the cyclical transformation of the life insurance industry. At present, the whole life insurance industry is facing many challenges, the overall development model of the industry has a bottleneck, and the needs of customers have changed. In this regard, the effect of Ping An Insurance (Group) Company Of China Ltd(601318) internal life insurance reform needs to be continuously demonstrated. I hope the market will give the company patience and time.
Yao Bo said that the management is full of confidence in the development prospect of Ping An Insurance (Group) Company Of China Ltd(601318) as a whole:
First, full of confidence in the comprehensive financial model. Although the growth rate of operating profit of life insurance business slowed down last year, the growth rate of business profit of corporate banking, asset management, technology and other lines is relatively strong, reflecting the advantages of comprehensive finance model. The first mock exam is that “all roads lead to Rome.”
Second, the company has made clear the strategic direction of comprehensive finance + medical health ecology. Comprehensive finance itself has great development potential. In addition, medical health is also an industry with great development potential in China in the future.
Third, the effectiveness of life insurance reform will gradually appear. This year, the company’s life insurance reform has entered its third year, and the company continues to promote the in-depth reform of channel products and culture. The prospect of life insurance market is huge, and the future is still full of development potential.
Founder Group restructured smoothly
to make Chinese HMO
At the beginning of this year, Ping An Insurance (Group) Company Of China Ltd(601318) announced in the Hong Kong stock exchange that the China Banking and Insurance Regulatory Commission agreed Ping An Life to invest in new Founder group.
Xie Yonglin, general manager and co CEO of Ping An Insurance (Group) Company Of China Ltd(601318) Ping An Insurance (Group) Company Of China Ltd(601318) , responded to the latest progress in the reorganization of Founder group, which is concerned by the market. At the briefing, Xie Yonglin said that at present, the overall project of Founder Group has been promoted smoothly. On January 30, 2022, Ping An Life received the reply from the China Banking and Insurance Regulatory Commission and agreed to Ping An Life’s investment in new Founder group. Ping An Life’s final shareholding was 66.5%. At present, the whole reorganization plan is advancing according to the established objectives, and the company will timely fulfill the obligation of information disclosure according to the progress of reorganization. There are several listed companies under Founder group, which will be disclosed according to relevant procedures.
Previously, Xie Yonglin said publicly that Ping An Insurance (Group) Company Of China Ltd(601318) participated in the reorganization of Founder group in the hope of creating a more warm financial and insurance service unique to Ping An Group through the coordination of medical resources, while the resources of Founder’s Peking University Medical Group are very scarce in the market.
As for the construction of Ping An Insurance (Group) Company Of China Ltd(601318) medical ecology, Ping An Insurance (Group) Company Of China Ltd(601318) co CEO Chen Xinying said that Ping An Insurance (Group) Company Of China Ltd(601318) is committed to the Chinese version of HMO (health maintenance organization), there are two key factors to do this well. First, it needs to represent the payer; Second, we should integrate the suppliers.
How to represent the payer? Chen Xinying said, Ping An Insurance (Group) Company Of China Ltd(601318) as a whole covers 227 million individual customers, with 140 billion yuan of health and medical insurance premiums, which can provide one-stop health, medical and elderly care services on behalf of the payer.
How to integrate suppliers? She said that the integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) medical. First, more than 2000 doctors who are good doctors online. Second, the acquisition of Peking University Medical and its 10 hospitals. Third, the “three to” service, that is, to the line, to the store, to the home service.
real estate investment risk controllable
Ping An Insurance (Group) Company Of China Ltd(601318) annual report shows that in 2021, the company made impairment provision, valuation adjustment and profit and loss adjustment of equity method for China Fortune Land Development Co.Ltd(600340) related investment assets, with a total amount of 43.2 billion yuan, including 15.9 billion yuan of equity and 27.3 billion yuan of creditor’s rights; The amount of impact on the net profit attributable to the parent company after tax is 24.3 billion yuan, and the amount of impact on the operating profit attributable to the parent company after tax is 7.3 billion yuan.
In addition to China Fortune Land Development Co.Ltd(600340) , Ping An Insurance (Group) Company Of China Ltd(601318) whether the current risk exposure in the real estate field is controllable is the most concerned issue of investors.
In response, Ping An Insurance (Group) Company Of China Ltd(601318) chief investment officer (to be appointed) Deng Bin said that in Ping An Insurance (Group) Company Of China Ltd(601318) the real estate investment, the real estate projects for the purpose of long-term rent collection accounted for more than half, the real estate exposure risk was controllable and the prospect was promising. According to the annual report data, Ping An Insurance (Group) Company Of China Ltd(601318) core real estate exposure is 5.5%, which is in a reasonable range.
For the future strategy of real estate investment, Deng Bin said that in the future, Ping An Insurance (Group) Company Of China Ltd(601318) will adhere to the 16 character investment philosophy of “sticking to the bottom line, grasping opportunities, crossing the cycle and leading value”. Under the guidance of strategic asset allocation, make real estate investment in line with national policy guidance. Among them, there are high-quality real estate projects including carbon neutralization, digital economy, medical health and other related concepts, as well as high-quality commercial real estate, affordable low rent housing and affordable rental housing, which are closely related to the national economic development.
