\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 318 Ping An Insurance (Group) Company Of China Ltd(601318) )
Event: the company disclosed that in the first quarterly report of 2022, the group achieved operating revenue of 305.9 billion yuan (yoy-10.1%), net profit attributable to parent company of 20.7 billion yuan (yoy-24%), and basic earnings per share of 1.18 yuan (yoy-23%); The group realized an operating profit of 43 billion yuan (YoY + 10%), of which life insurance, property insurance, banking, asset management and technology businesses contributed 67%, 7%, 17%, 6% and 6% respectively.
We believe that the company’s first quarterly report has the following three key points: 1) manpower loss and pressure on value rate, and the NBV of life insurance and health insurance is 12.6 billion yuan (yoy-34%); 2) Property insurance grew steadily, with a comprehensive cost rate of 96.8%, a slight increase of 1.6pct. Over the same period last year; 3) Affected by the significant adjustment of the capital market, the annualized total return on investment in Q1 is only 2.3% (yoy-0.8pct.)
NBV fell 34% year-on-year, and the reform of channels and products continued. Affected by the decline of manpower scale in the first quarter and the pressure on the overall value rate of products, the company achieved a year-on-year decrease of 34% in NBV in Q1, of which the first year premium used to calculate the value of new business decreased by 15% year-on-year and the value rate of new business decreased by 6.8pct To 24.6%. The company continues to continue the two wheel drive strategic transformation direction of “channel + product”. 1) channel side: the decline of scale continues to be optimized, and the new bank insurance team Wu Liangjian. The agent team of Q1 continued the downward trend, and the number of individual insurance team reached 537000 (yoy-11%). The individual insurance manpower strengthened the fine operation, and the proportion of college degree or above in Q1 increased by 3.5pct. Bancassurance channels, deepen cooperation with Ping An Bank Co.Ltd(000001) and build a new Bancassurance team. In the opening stage, bancassurance achieved a year-on-year increase of 30%. 2) Product side: increase the sales of savings products and promote the transformation of “insurance +”. Q1 Ping An Life Insurance‘s listed life insurance product “Shengshi Jinyue” meets the purpose of customers’ pursuit of wealth appreciation. And build differentiated competitive advantages through the three core services of “insurance + health management”, “insurance + high-end elderly care” and “insurance + home-based elderly care”.
The comprehensive cost rate of property insurance was stable, and the investment dragged down the profit performance. Affected by the comprehensive reform of auto insurance, the growth rate of Q1 premium of the company’s property insurance returned to normal, and Ping An Property Insurance realized 73 billion yuan of original insurance premium (YoY + 10.3%), of which auto insurance, non auto insurance and health insurance increased by 10%, 2% and 39% year-on-year. The overall comprehensive cost rate is 96.8% (YoY + 1.6pct) It was mainly affected by the year-on-year increase in guarantee insurance compensation expenditure driven by the epidemic. Q1 company’s property insurance realized an operating profit of 3 billion yuan (yoy-41%), mainly due to the significant adjustment of the equity market in the first quarter, the impact of investment income and the rise of the overall loss ratio.
The annualized total return on investment in Q1 is 2.3%. As of 2022q1, the size of the company’s insurance fund portfolio was nearly 4.1 trillion yuan, an increase of 4.6% over the beginning of the year. Due to the intensified capital market adjustment in Q1 and the low interest rate, the performance of investment income is still under pressure under the relatively low base of Q1 last year, and the total annualized net investment return is 3.3% (yoy-0.2pct.), The annualized total return on investment is 2.3% (yoy-0.8pct.). Among them, Q1 investment income and profit and loss from changes in fair value decreased by 30.3 billion and 6.7 billion respectively compared with the same period last year.
Maintain the Buy-A investment rating. Maintain the Buy-A investment rating. It is estimated that the EPS of Ping An Insurance (Group) Company Of China Ltd(601318) 20222024 will be 6.5 yuan, 6.9 yuan and 8.3 yuan respectively, corresponding to 0.58 times of P / EV in 2022. At present, P / EV is at a historical low, and the six-month target price is 62 yuan.
Risk tips: sharp fluctuations in the equity market, uncertainty in regulatory policies, continuous decline in the size of agents, etc.
