\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 318 Ping An Insurance (Group) Company Of China Ltd(601318) )
Event:
Ping An Insurance (Group) Company Of China Ltd(601318) released the report for the first quarter of 2022: Ping An Insurance (Group) Company Of China Ltd(601318) 2022q1 achieved operating revenue of 305.9 billion yuan (yoy-10.1%), net profit attributable to parent company of 20.7 billion yuan (yoy-24.1%), operating profit attributable to parent company of 43 billion yuan (YoY + 10.0%), basic earnings per share of 1.18 yuan (yoy-23.4%), property insurance premium income of 73 billion yuan (YoY + 10.3%) and cor96.3% 8%, year-on-year + 1.6pct, nbv12.6 billion yuan (yoy-33.7%), annualized net investment return of 3.3% and annualized total investment return of 2.3%.
Comments:
Life insurance: NBV is under significant pressure, and the clearing up of agents is still in progress. In 2022q1, the company realized nbv12.6 billion yuan (yoy-33.7%), the first year premium was 51.2 billion yuan (yoy-15.4%), and nbvm24.4% 6%, year-on-year -6.8pct, which is expected to be mainly due to the adjustment of the agent team. In the same period of last year, the transformation of old and new serious diseases brought a high base, which superimposed the impact of the company’s main promotion of increased life insurance products represented by “Shengshi Jinyue” in the first quarter. At the same time, the epidemic repeatedly affected the agent’s offline development, and NBV was under great pressure. By the end of the first quarter, the number of personal insurance sales agents of the company was 538000, a decrease of 10.4% over the beginning of the year, and the improvement of quality and stability of agents was still in progress. At present, the company has launched the “excellent +” plan for the construction of new team, and continues to promote the pilot of digital business department. In the future, it is expected to alleviate the pressure on NBV through human empowerment.
Property insurance: the premium income increased steadily and the business quality continued to be optimized. In 2022q1, the company realized a property insurance premium income of 73 billion yuan (YoY + 10.3%), of which the auto insurance premium income was 47.1 billion yuan (YoY + 10.4%). It is estimated that the improvement of the income is mainly due to the weakening of the cyclical impact of the comprehensive reform of auto insurance and the release of compensation pressure due to the superposition of epidemic diseases. The non auto insurance premium income was 18.7 billion yuan (YoY + 2.1%), and the Italian health insurance premium income was 7.3 billion yuan (YoY + 38.5%). In 2022q1, the comprehensive cost rate of property insurance was 96.8%, with a year-on-year increase of + 1.6pct. It is expected that it is mainly affected by the epidemic, and the compensation expenditure of guarantee insurance business increased year-on-year. The company continued to strengthen scientific and technological empowerment and build an automobile service ecosystem. By the end of the first quarter, the registered users of Ping an good car master app had exceeded 153 million (YoY + 17.7%), and the cumulative number of tied up vehicles had exceeded 97 million.
Investment: the market downturn has significantly dragged down the performance of the investment side. By the end of the first quarter, the company’s investment assets were nearly 4.1 trillion yuan, an increase of 4.6% over the beginning of the year. 2022q1 is affected by multiple factors, the downward pressure of the market increases, and the pressure on the investment side of the company is obvious. The annualized net investment return is 3.3%, year-on-year -0.2pct, and the annualized total investment return is 2.3%, year-on-year -0.8pct. By the end of the first quarter, the company’s investment assets accounted for 11.3% of debt plans and debt based financial products. The overall credit level was good, and the risk was stable and controllable.
Banks: excellent revenue performance, slightly improved asset quality and capital adequacy. 2022q1 Ping An Bank Co.Ltd(000001) achieved an operating revenue of 46.2 billion yuan (YoY + 10.6%), a net profit of 12.9 billion yuan (YoY + 26.8%), and excellent performance. In 2022q1, the average cost rate of deposit taking was 2.05%, with a year-on-year -0.01pct, the non-performing loan rate was 1.02%, unchanged from the beginning of the year, the provision coverage rate was 289.1%, increased by 0.68pct from the beginning of the year, the core Tier-1 capital adequacy ratio increased by 0.04pct from the beginning of the year, and the asset quality and capital adequacy level were improved.
Comprehensive finance: the brokerage business performed well, and the scale of asset management continued to grow. In 2022q1, the company’s comprehensive financial premium scale is 4.8 billion yuan (YoY + 9.4%), and the comprehensive financial financing scale is 193 billion yuan (YoY + 9.0%). Relying on the group’s comprehensive financial and technological advantages, Ping An Securities has a steady growth in performance. In 2022q1, the market share of brokerage stock based trading volume is about 3.69%, which is the same as that in the same period last year. The scale of ABS and bond underwriting ranks second and seventh in the industry respectively. Ping An Trust continued to deepen its transformation and significantly improved its asset management scale. As of the end of the first quarter, the trust asset management scale was 478.7 billion yuan, an increase of 3.8% over the beginning of the year, and the proportion of actively managed asset management scale increased to 81.1%.
Profit forecast and rating: in 2022q1, the company’s life insurance reform has been deepened. Around the two wheel drive strategic deployment of “channel + product”, phased progress has been made in the high-quality transformation of the agent team. It is expected that the follow-up individual insurance channels and bancassurance channels will work together or alleviate the pressure on NBV, superimpose the company’s active promotion of scientific and technological empowerment, create a new engine of value growth with medical health, establish differentiated advantages, and the performance of life insurance is expected to rebound. The pressure of comprehensive reform of auto insurance has been fully released. It is expected that the comprehensive cost rate will further narrow after the epidemic is effectively alleviated. However, considering the increasing downward pressure in the current market and the pressure on the investment side of the company in the first quarter, which significantly dragged down the profit growth, we lowered the forecast of the company’s net profit attributable to the parent company from 2022 to 2024 by 19.3% / 13.2% / 10.4% to 1169 / 1471 / 172.6 billion yuan. At present, the A / H share price corresponds to the company’s 22-year PEV of 0.54/0.52, maintaining the “buy” rating of a / H shares.
Risk warning: the equity market fluctuates sharply; The advancement of policy reform is less than expected; The long-term interest rate was lower than expected.
