Ping An of China (601318) commented in the 2019 Interim Report: profit growth exceeded expectations and end-to-end fixed value development

Investment Highlights Ping An’s zero return growth of net profit in the first half of 2019. The profits and investment income released by the tax reduction policy increased compared with the same period of the previous year. At the same time, the growth rate of operating profits affected by alternative short-term factors also slightly exceeded the market.expected.

The company’s net profit attributable to mothers was 9.77 million yuan in 2019H1, a year-on-year increase of 68.

1%, the initial expected growth includes: 1.

The tax reduction policy will pay more than 104 in 18 years.

$ 5 million is released as profit this year, and tax cuts have also contributed to this year’s profit growth; 2.

The performance of the investment side was much better than the same period of last year. The total investment income of insurance assets reached 102.6 billion, an increase of 94 over the same period.

5%, Ping An’s use of IFRS9 accounting standards has also increased changes in investment income.

Under the influence of short-term factors such as alternative investment, the company’s operating profit for H1 2019 increased by 23.

8%, also higher than market expectations.

The life insurance liability end as a whole was in line with expectations. New policy premiums were affected by product mix adjustments and a high base. There was a negative growth, but the value rate of new business increased significantly, and the value of new business also achieved positive growth.

The company’s 2019H1 life insurance 佛山桑拿网 individual business new order scale premium growth rate was -7 in half a year.

The decrease of 1% was mainly due to the company’s Q1 initiative to adjust its product structure and focus on the operation of high-value products. As a result, the sales volume of Q1 annuity insurance fluctuated. Looking at Q2 alone, the growth rate of new orders was basically the same as that of the same period last year, and marginal improvement.

In addition, the high base last year is also one of the reasons for the replacement of new orders.

The optimization of the product structure has increased the company’s new business value rate in 2019H1 by 5 per year.

7 singles, driving new business value increase4.

7%.

In terms of manpower, the number of individual insurance agents at the end of 2019H1 was 128.

60,000, down 9 from the 武汉夜网论坛 end of last year.

3%, the main reason for the decline was the company’s voluntary removal of substandard agents.

Looking ahead to the second half of the year, we expect the margins of the company’s debt side to continue to improve, with a focus on changes in hostages and quantities and on the product side.

The insurance industry’s premium income grew steadily. The comprehensive cost ratio increased slightly, and the decrease in effective tax rate significantly increased the profit of property insurance.

The company’s premium for property insurance business in 2019H1 will increase by 9 per year.

7%, basically the same as the industry growth rate, and the comprehensive cost reached 96 again.

6%, rising by 0 every year.

Eight averages, of which the expense ratio has decreased and the payout ratio has increased.

In terms of different types of insurance, the increase in the comprehensive cost ratio of automobile insurance and guaranteed insurance, which has a relatively high revenue share, is the leading factor in the rise of the company’s comprehensive cost ratio of property insurance.

Affected by the tax reduction policy, the effective tax rate of the company’s property insurance business in 2019H1 (without considering the 18-year reversion) is 21%, which has gradually decreased by 20 percentage points. Combined with the 18-year income reversion, the company’s property insurance business has realizedNet profit was 11.9 billion yuan, an increase of 100 in ten years.

8%.

Looking into the second half of the year, under the influence of the continuous increase in the scale of supervision, the proportion of property and insurance company’s fee expenses will still decline, and profitability is expected to continue to increase.

The asset allocation mainly increased the proportion of stocks and funds, and the better performance of the investment side drove the growth of profits and EV.

The company’s 2019H1 mainly increased the proportion of stocks and funds (+1.

1 per share), and long-term equity investments have also increased (+0.

2 averages).

The 2019H1 investment end performed well, driven by the recovery of the capital market, with a net investment return rate and a total investment return rate of 4, respectively.

5% (decade +0.

3 averages) and 5.

5% (ten years +1.

5 averages).The better performance of the investment side drove the growth of profits and EV, and short-term investment increased by 13 billion yuan, accounting for 18% of the net profit attributed to the mother.

4%; investment return difference in EV increments is 157.

6 ppm, accounting for 14 of the EV increase.

2%.

We slightly adjusted the company’s EVPS to 66 in 2019, 2020 and 2021.

51 yuan, 80.

06 yuan and 95.

85 yuan, EPS is 8 respectively.

16 yuan, 9.

28 yuan and 11.

49 yuan to 2019.

8.

At 15 closing prices, the corresponding PEVs are 1.

3,1.

08 and 0.

9, the corresponding PE is 10.

58,9.

30 and 7.

51. We give a prudent overweight rating.

Risk warning: New single premium income is lower than expected, interest rates are down, and investment income is lower than expected.