\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 318 Ping An Insurance (Group) Company Of China Ltd(601318) )
Event: the company’s q122 revenue was 305940 billion yuan, a year-on-year increase of – 10.1%, and the net profit attributable to the parent company was 20.658 billion yuan, a year-on-year increase of – 24.1%. Its performance was relatively better than that of its peers. The operating profit attributable to the parent company was 43.047 billion yuan, a year-on-year increase of + 10.0%. Life and health insurance nbv125 RMB 8.9 billion, year-on-year – 33.7%, nbvm24.5% 6%, year-on-year -6.8pct. Proportion of net profit attributable to parent: Life Insurance and health insurance 34.9%, property insurance 14.5%, bank 36.1%, asset management 12.5%, technology 10.6%, others – 8.6%. Growth rate of net profit attributable to parent: Life Insurance and health insurance – 41.8%, property insurance – 41.1%, bank + 26.8%, asset management + 13.1%, technology – 33.5%, others + 3.0%. The bank’s performance is bright, but the liability side of insurance business and the investment of insurance funds are under pressure, which hinders the performance of the company.
Performance attribution: [life insurance and health insurance] affected by the decline of human inertia, the adjustment of product structure and the high base of serious illness insurance in the same period last year, NBV and nbvm decreased year-on-year. At the end of q122, there were 537900 personal insurance agents, down from – 10.4% at the beginning of the year, of which those with college degree or above accounted for + 3.5pct year-on-year, and the manpower structure is in the process of gradual improvement. The company’s first increased life “Shengshi Jinyue” has received good market response. [property insurance] the premium income was 73.018 billion yuan, a year-on-year increase of + 10.3%, but the compensation expenditure increased due to covid-19 epidemic, with a comprehensive cost rate of 96.8%, a year-on-year increase of + 1.2pct. [investment income] q122 the stock market fell, the market interest rate range fluctuated, and the credit spread increased, putting pressure on the company’s investment income. The annual return on net investment and total investment were 3.3% and 2.3% respectively, with a year-on-year increase of -0.2pct and -0.8pct.
Promote channel reform and reduce the pressure of impairment: the individual insurance channel implements layered operation, promotes the ability upgrading of diamond team with incentive and product upgrading, and increases new employees with “excellent +” plan. Bancassurance channels strengthen cooperation with Ping An Bank Co.Ltd(000001) to build an exclusive product system and give full play to the group’s comprehensive financial advantages. Explore the community grid business model and open up new growth space in combination with the insurance consumption scene of the sinking market. Q122 credit impairment loss was 17.501 billion yuan, a year-on-year increase of – 22.7%. The investment in debt plans and debt based financial products accounted for 11.3%. The credit level was good, and the risk was stable and controllable.
Investment suggestion: Based on the data of the company’s first quarterly report, we lowered the assumption of the company’s total return on investment, and based on this, we lowered the profit forecast for 202224 by 9.7%, 7.0% and 5.2%. The current share price of the company corresponds to 2022ep / ev0 53x, considering the strong determination of the company to promote the reform of channels and products, the company maintained the “Buy-A” rating.
Risk tips: continuous loss of agents, repeated epidemics, lower than expected sales of new products, capital market fluctuations, etc.
