Zhou’s view: the meeting of the financial committee boosted market confidence and was optimistic about the leading companies of big wealth management
This week’s meeting of the Finance Committee emphasized the importance of maintaining the stability of the capital market and proposed to actively introduce policies beneficial to the market. It is expected that the follow-up policies will be more positive. With the restoration of market confidence, we are now the first to promote the target of the great wealth management track of securities companies with strong beta attribute, including China stock market news, the leader of the channel side, and Gf Securities Co.Ltd(000776) and Orient Securities Company Limited(600958) , In the medium and long term, the above targets still have strong growth attributes and high valuation cost performance; In addition, we are optimistic about the leading securities companies with better undervalued value expected in the first quarterly report.
Securities companies: reduce the settlement provision, improve the transaction efficiency of the whole market, and promote the leader of big wealth management
(1) the statement made at the meeting of the Finance Committee on March 16 boosted market confidence, and the A-share and Hong Kong stock markets rebounded significantly. On March 16, the China Banking and Insurance Regulatory Commission said that it would guide insurance institutions to allocate more funds to equity assets and support wealth management companies to increase the proportion of equity products; The CSRC said that it will solidly promote the reform of the registration system and improve the system and mechanism conducive to the participation of long-term institutional investors in the capital market; China Clearing said that in line with the ongoing DVP reform, the payment proportion of the minimum settlement provision for stock business was reduced from 18% to 16%. We estimate that the average daily stock trading volume is 1 trillion yuan, which will release about 20 billion yuan of funds for the market, help reduce the transaction settlement cost, and bring capital release to the funds of securities companies, banks, public offering and other institutions. (2) The statement of the financial commission will boost the confidence of the stock market, and the follow-up policies are expected to be more positive. The securities sector will benefit comprehensively. We are the first to promote the target of the big wealth management track with stronger beta attribute. At the same time, we are optimistic about the leading target of undervalued value, and recommend China stock market news, Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) and Huatai Securities Co.Ltd(601688) , and Citic Securities Company Limited(600030) , China Greatwall Securities Co.Ltd(002939) and China International Capital Corporation Limited(601995) (H shares).
Insurance: the property insurance data continued to exceed expectations, and the pessimistic expectation on the liability side of life insurance was basically reflected in the valuation
(1) Ping An Insurance (Group) Company Of China Ltd(601318) this week, the annual report of 2021 was disclosed. The operating profit attributable to the parent company was + 6.1%, the operating roe was 18.9% and NBV was – 23.6% year-on-year, basically in line with our expectations. The EV of the group was + 5.1% year-on-year, lower than our expectations, mainly due to investment deviation, slow growth of NBV and non operating profits of other businesses; At the end of 2021, there were Shanghai Pudong Development Bank Co.Ltd(600000) agents, with a quarter on quarter ratio of – 15.0%, compared with – 41.4% at the beginning of the year. In terms of life insurance transformation, the company’s innovation in bank talent channels, community grid channels and sinking channels has been effective. At the same time, it has increased the layout of medical treatment and pension. We expect the growth rate of NBV and EV in 2022 to be – 7.5% / + 12% respectively. (2) In February, the property insurance premium income of the four listed insurance companies was + 15.7% year-on-year, up 3.7pct from + 11.9% in January, continuously exceeding our expectations. The China Automobile Association disclosed that the passenger car sales in February were + 27.8% year-on-year, with a cumulative increase of + 14.4% year-on-year, significantly higher than + 6.7% year-on-year in January. The passenger car sales exceeded expectations, and the leading insurance companies in the property insurance industry are expected to benefit. (3) The growth of property insurance exceeded expectations and China’s property insurance benefited; The valuation of life insurance shares has reflected the market’s pessimistic expectations on the liability side. The follow-up opportunities are mainly to improve expectations on the asset side. Recommend Ping An Insurance (Group) Company Of China Ltd(601318) , which has a large repair space on the asset side, China Pacific Insurance (Group) Co.Ltd(601601) 601 , which is leading in transformation, and the beneficiary objects are China Property Insurance (H shares), AIA (H shares) and China Life Insurance Company Limited(601628) .
Combination of beneficial objects
Securities companies: China stock market news, Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) , Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) (H shares), Huatai Securities Co.Ltd(601688) ; Insurance: China Property Insurance (H shares), AIA (H shares), China Pacific Insurance (Group) Co.Ltd(601601) , Ping An Insurance (Group) Company Of China Ltd(601318) , China Life Insurance Company Limited(601628) ; Diversified Finance: Jiangsu Financial Leasing Co.Ltd(600901) .
Risk warning: stock market fluctuations have an uncertain impact on the profits of securities companies and insurance companies; The growth of insurance liabilities is less than expected; The profit growth of wealth management and asset management of securities companies was lower than expected.
