“From the perspective of valuation, our share price is undervalued. At present, the dividend rates corresponding to the share prices of A-Shares and H shares are 3.7% and 8.0% respectively, which is worthy of long-term holding. Investors can share the company’s long-term development achievements while obtaining higher cash dividends.” On March 28, Li Zhuyong, vice president of PICC group, said at the annual performance conference that from the perspective of valuation and dividend yield, the company’s share price is at the bottom of history, “we are confident that the company’s share price will be better in the long term in the future.”
Since The People’S Insurance Company (Group) Of China Limited(601319) ( The People’S Insurance Company (Group) Of China Limited(601319) . Sh, 01339. HK) returned to a in 2018, the stock price performance has been concerned by investors. Almost every year’s performance press conference will involve the company’s A-share price and other related issues. As of the closing on March 28, The People’S Insurance Company (Group) Of China Limited(601319) a shares closed at 4.51 yuan, up 1.12%; H shares closed at HK $2.50, up 0.81%.
Li Zhuyong believes that the stock price is determined by the market. In the long run, it mainly depends on the fundamentals, while in the short term, it is affected by multiple factors. In 2021, the poor performance of the share price of the insurance sector was mainly due to the switching of kinetic energy in the transformation of the life insurance industry to high-quality development. In the past, the business mode has been unsustainable. Most companies chose to change the crowd mode and slow down the existing growth through in-depth channel and product reform, so as to achieve higher quality growth in the future. Therefore, major life insurance companies have experienced a temporary decline in business growth. In addition, some investors are worried that the comprehensive reform of automobile insurance and major natural disasters will affect the future profitability of the property insurance industry. The short-term factors of these industries combined with macroeconomic pressure led to certain difficulties in the operation and development of the insurance industry last year, and the stock price performance was not satisfactory.
He said that the share price of PICC group showed strong resilience in the environment of general decline in the share price of the industry. “PICC group is a listed company with property insurance as its main business, and its investment value is different from that of life insurance companies, especially in H shares. The company’s H shares have not been affected by the reduction of holdings by major shareholders of a shares. The share price performed better than that of its peers in 2021, and rose to a certain extent when the index and peers generally fell.”
On the evening of March 27, Ping An Insurance (Group) Company Of China Ltd(601318) announced that from March 18 to 25, the company used the “2022 core personnel shareholding plan” and “2022 long-term service plan” to buy A-Shares of the company, with a total capital of about 5.034 billion yuan.
Talking about the ways PICC group will boost the company’s share price, Li Zhuyong said that it will stabilize and boost the company’s share price in a variety of ways. First, further promote the implementation of “excellent insurance strategy”, continuously improve the company’s performance, create sustainable growth value for investors, and support the company’s share price with good performance; The second is to continuously improve the return to investors. “We pay attention to the amount of dividend per share and will certainly consider this when establishing the dividend proportion every year. Moreover, since our listing in 2012, our cash dividend per share has always maintained an increasing trend and will be maintained as much as possible in the future, so that investors can obtain stable dividend income”; Third, vigorously strengthen communication with investors, so that the market can have an in-depth understanding of the company’s operation and management, business characteristics dominated by property insurance, unique competitive advantages and good investment value.
