\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 318 Ping An Insurance (Group) Company Of China Ltd(601318) )
Core view:
The event company released its annual report for 2021.
Cash dividends continued to increase, and ev was lower than expected. In 2021, the company achieved an operating revenue of RMB 1180444 billion, a year-on-year increase of 3.1%; The net profit attributable to the parent company was 101618 billion yuan, a year-on-year decrease of 29%, an increase of 8.22 percentage points over the first three quarters; The operating profit attributable to the parent company was 147961 billion yuan, a year-on-year increase of 6.1%. The company made impairment provision for China Fortune Land Development Co.Ltd(600340) investment assets, reducing the net profit attributable to the parent company after tax by 24.3 billion yuan, dragging down the growth of net profit. Operating profit has achieved positive growth after excluding the impact of short-term investment fluctuations and changes in discount rate. Affected by the growth of operating profit, the company increased the proportion of cash dividends, and the dividend per share increased by 8.2% year-on-year in 2021. In 2021, the group realized an embedded value of 1.4 trillion yuan, a year-on-year increase of 5.07%.
The decline of NBV was expanded, and the optimization of agent structure was affected by the decline of new business value rate caused by the repeated covid-19 pneumonia epidemic, the weakening of customer purchasing power, the fall off of the number of agents and the increase in the proportion of savings products. NBV growth was under pressure. In 2021, the company achieved NBV of life insurance and health insurance business of 37.898 billion yuan, a year-on-year decrease of 23.6%, further expanding by 5.79 percentage points compared with the first three quarters; The new single premium was 136290 billion yuan, a year-on-year decrease of 8.5%. Among them, the new single premium of individual insurance agent channel was 93.509 billion yuan, a year-on-year decrease of 5.94%; The value rate of new business was 27.8%, down 5.5 percentage points year-on-year, further lower than that in the first three quarters (30.7%). Among them, the long-term guaranteed savings hybrid products decreased by 8.1 percentage points to 47.5%, and the long-term guaranteed products decreased by 9.3 percentage points to 86.7%. In terms of agents, the number has fallen off, and the transformation of high quality has been steadily promoted. In 2021, the number of personal life insurance agents of the company was V V Food & Beverage Co.Ltd(600300) , a year-on-year decrease of 41.4%. The per capita first year premium of agent channels increased by more than 22% year-on-year, and the proportion of college or above increased by 2.4 percentage points compared with the beginning of the year
The premium of property insurance decreased and the comprehensive cost rate of automobile insurance increased. In 2021, Ping An Property Insurance realized an operating profit of 16.192 billion yuan, a year-on-year increase of 0.2%; The original insurance premium income was 270043 billion yuan, a year-on-year decrease of 5.5%. Affected by the comprehensive reform of automobile insurance, fierce market competition and other factors, the premium of automobile insurance increased negatively. The original premium income of the company's auto insurance business was 188838 billion yuan, a year-on-year decrease of 3.7%, accounting for 69.93%; The original premium income of non auto insurance + accident and health insurance business was 81.205 billion yuan, a year-on-year decrease of 9.47%, accounting for 30.07%. Affected by the torrential rain disaster in Henan, the comprehensive cost rate of automobile insurance market increased. The company's comprehensive cost rate of property insurance in the whole year reached 98%, a year-on-year decrease of 1.1 percentage points, an increase of 0.7 percentage points compared with the first three quarters; The comprehensive cost rate of auto insurance was 98.9%, up 0.7 percentage points year-on-year.
Affected by the decline of interest rate and impairment provision, the return on investment of the company decreased due to the fluctuation of capital market, the decline of market interest rate and the increase of impairment provision. In 2021, the group devalued China Fortune Land Development Co.Ltd(600340) related investment assets by 43.2 billion yuan. By the end of 2021, the company had invested 3.92 trillion yuan in assets, an increase of 4.7% over the end of the previous year. The company's net return on investment was 4.6%, a year-on-year decrease of 0.5 percentage points; The total return on investment was 4%, down 2.2 percentage points year-on-year. Corporate bond investment accounted for 48.6%, down 1.6 percentage points year-on-year; Equity + equity funds accounted for 9.3%, a year-on-year decrease of 0.9 percentage points.
It is suggested that the company build a new engine of value growth with medical and health care, continue to promote the reform of life insurance, "channel + product" two wheel drive, steadily promote the high-quality transformation of agents, optimize the structure and gradually improve the production capacity. Superimposed on the low base effect in the same period last year since March, the liability side is expected to improve in the future. We continue to be optimistic about the future development prospects of the company. Combined with the company's fundamentals and stock price elasticity, we maintain the "recommended" rating. The current stock price corresponds to a PEV of 0.58x in 2022.
Risk indicates the risk that the growth of premium income is less than expected.
