Ping An (601318) 2019 Annual Report Review: Steady Growth in Embedded Value, Transformation and Transformation

Ping An (601318) 2019 Annual Report Review: Steady Growth in Embedded Value, Transformation and Transformation

Event: The company achieved total revenue in 20191.

17南京夜网论坛 trillion (+19 year-on-year.

7%), net profit attributable to mother 1.
49.4 billion (+ 39% YoY).

1%), ROE is 24.


The embedded value of the company increased by ten years.

8% to 1.

2 trillion, the value of new business is increasing by 5 per year.

1% to 759.

500 million, full-year dividend 2.

05 yuan / share.

The company’s embedded value grew steadily, and its performance basically met market expectations.

Life insurance: The increase in the number of pieces per capita and the new business value rate are driving new business value growth.

In 2019, the company’s life and health insurance new policy premiums were broken down by 3%, and the new business value rate increased by 3.

6ppts to 47.

3%, NBV increased by 5 in half a year.

1% to 759.

5 billion.

The company continued to promote the 四川耍耍网 improvement of agent quality, while the sales volume and price of the company’s guaranteed products increased, and the average number of agents fell by 9 per month.

In the case of 1% and the agent’s income is not high, the company’s per capita number increases to 1.

38 pieces / person (YOY + 13.

1%) and the per capita NBV is increasing by 16 per year.

4%, while the company’s long-term protection products increased by 10.

2%, the NBV rate is as high as 104.


The agent transformation effect has gradually improved. It is expected that the company’s agents will remain stable by 2020, and the number of pieces per person and the value of new business are still expected to increase.

Property insurance: The comprehensive cost rate rose slightly, and tax-optimized investments contributed high profits.

In 2019, Ping An Property & Casualty’s original insurance premium income increased by 9 per year.

5% to 27.09 million yuan, the comprehensive cost rate rose by 0.

4ppts to 96.

4%, mainly due to the increase in liability insurance and guaranteed insurance claims.

The company’s auto insurance expense rate continued to decline, the compensation rate rose slightly, and the comprehensive cost rate continued to fall to 97.


Accident and Health Insurance Contribution 36.

4% higher growth.

Tax incentives and investments contributed a higher net profit of 22.8 billion (YOY + 85) in 2019.

8%), the comprehensive cost ratio of auto insurance is expected to further decline in 2020, and total premium income growth will improve.
Investment: The equity market is picking up, and investment structure adjustment contributes high returns.
The company’s net investment yield in 2019 is 5.

2%, basically the same as in 2018, due to the recovery of the equity market, while the company expanded the proportion of stock investment to 9.

2%, the total return on investment increased significantly to 7%.

In 2019, through positive investment structure adjustments, the company reduced cash and deposits, increased the investment ratio of stocks and bonds, converted funds to non-standard products and allocated them to preferred stocks with long-term high dividend rates to adapt to the downward impact on the insurance industry.

It is expected that the company’s active strategy and the continued improvement of the stock market in 2020 will maintain a good return on investment.

Banks: The retail transformation has advanced in depth and business quality has continued to improve.

In 2019, the retail revenue of Ping An Bank increased by 29 each year.

2% to 80 billion, retail business revenue continued to rise to 58%.

Net interest margin increased by 27ppts to 2.

62%, the non-performing loan ratio decreased by 10ppts, and the core tier 1 capital adequacy ratio continued to maintain a high level.

The company empowered retail customers through technology, improved risk control management policies, further increased the number of customers to 97.08 million, and increased total managed customer assets by 40% to 1.

At 98 trillion yuan, overdue loans declined significantly, the company’s strategic and management advantages were prominent, and the overall quality of its business was improved overall.

Comprehensive Finance: Asset management business declined, and leases increased in counter-cyclical fashion.

Affected by the new rules on asset management, the total assets of the asset management business expanded, and the increase in financing management fees led to negative growth in the asset management business.

Ping An Securities built an intelligent service platform, and net profit increased by 41.

4%, while counter-cyclical businesses such as leasing business grew 36% to 44.

800 million.

It is expected that the new asset management regulations in 2020 will continue to affect the asset management industry.

Technology expansion continues, with online and migrating customers increasing.

The scale of wealth management transactions affected by consumer finance and finance affected by Lujin decreased by 29 compared with the same period last year.

8% in 2019, the operating income of OneAccount will increase by 64.

7% to 23.

2.8 billion.

Ping An stabilizes customers and deepens its comprehensive financial strategy through continuous technology promotion.

By the end of 2019, the company’s personal customers exceeded 200 million for the first time, and Internet customers5.

16 billion, of which 36.57 million new customers, of which 40.

7% of Internet users from the Group’s five major ecosystems.

The online migration of customers will continue to increase the synergy of the integrated financial industry and contribute to the group’s value.

Maintain “Buy” rating and raise TP to 110.

27 yuan.

We are optimistic about the company’s value transformation and the steady growth of embedded value. At the same time, benefiting from the equity market in 2020, the company’s investment yield is expected to maintain a high level.

According to the company’s disclosed financial data for 2019 and the growth expectation of the number of agents, the company’s net profit for 2020-2021 will be slightly reduced to 184/2227 billion, and the net profit forecast for 2022 will be increased to 2.62 billion.

According to the distribution estimation method, the target price is changed from 106.

42 was raised to 110.

27 yuan, maintain “Buy” rating.

Risk Warning: Macroeconomic Risks; Market Fluctuations; Unexpected Premium Growth