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Ping An Insurance (Group) Co. of China Ltd Class A 601318

Morningstar Rating
CNY 42.99 +0.09 (0.21%)
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Company Report

Ping An's Life Insurance Business Should Continue to Recover Despite a High Base in 2023

In China's highly competitive insurance market, Ping An differentiates itself with its ability to use proprietary technology to strengthen the customer experience and enhance cross-sales for its major ecosystems: integrated finance, auto, healthcare, and eldercare. We believe its competitive advantage results in a better outlook than peers in terms of underwriting profitability and growth.

Price vs Fair Value

601318 is trading at a 34% discount.
Price
CNY 42.99
Fair Value
CNY 35.00
Uncertainty
High
1-Star Price
CNY 837.16
5-Star Price
CNY 36.00
Economic Moat
Qvm
Capital Allocation
Rkxrtlfsl

Bulls Say, Bears Say

Bulls

We believe the regulatory cut to bancassurance commission rate will benefit large insurers such as Ping An, with about 75% of bancassurance sales being generated from its banking subsidiary and a strong product pipeline.

Bears

Frequent top management turnover posts more temporary headwinds to its ongoing business restructuring.

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News

Trading Information

Previous Close Price
CNY 42.90
Day Range
CNY 42.5243.09
52-Week Range
CNY 37.6256.00
Bid/Ask
CNY 42.99 / CNY 43.00
Market Cap
CNY 782.86 Bil
Volume/Avg
44.6 Mil / 50.6 Mil

Key Statistics

Price/Earnings (Normalized)
7.73
Price/Sales
0.93
Dividend Yield (Trailing)
5.65%
Dividend Yield (Forward)
5.65%
Total Yield
5.65%

Company Profile

Founded in 1988, Ping An Insurance is an integrated financial service provider headquartered in Shenzhen. The company has a focus on the offerings of healthcare services and integrated financial products. Ping An is China's second-largest life and P&C insurer. The company strives for an integrated financial services platform comprising life insurance, P&C insurance, banking, other financial services, and technology. These business segments contributed 51%, 11%, 33%, 4%, and 2% of the company’s operating profits, respectively, in the first half of 2023.
Sector
Financial Services
Industry
Insurance - Life
Stock Style Box
Large Value
Total Number of Employees
344,223

Competitors

Valuation

Metric
601318
601628
01336
Price/Earnings (Normalized)
7.7348.293.08
Price/Book Value
0.871.920.41
Price/Sales
0.931.020.41
Price/Cash Flow
1.712.110.45
Price/Earnings
601318
601628
01336

Financial Strength

Metric
601318
601628
01336
Quick Ratio
Current Ratio
Interest Coverage
0.63
Quick Ratio
No chart available

Profitability

Metric
601318
601628
01336
Return on Assets (Normalized)
0.42%0.88%1.11%
Return on Equity (Normalized)
5.31%10.70%12.99%
Return on Invested Capital (Normalized)
< 0.01%4.59%7.07%
Return on Assets
601318
601628
01336
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Insurance - Life Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
PNGAY
Ping An Insurance (Group) Co. of China Ltd ADRKzlm$97.9 Bil
PIAIF
Ping An Insurance (Group) Co. of China Ltd Class HSbdp$97.9 Bil
CILJF
China Life Insurance Co Ltd Class HWqnj$95.9 Bil
AAGIY
AIA Group Ltd ADRTtnb$90.2 Bil
AAIGF
AIA Group LtdMhn$90.2 Bil
MET
MetLife IncPjng$50.4 Bil
AFL
Aflac IncBgkpbkp$46.4 Bil
MFC
Manulife Financial CorpLqw$43.1 Bil
PRU
Prudential Financial IncXtqkx$38.8 Bil
PUK
Prudential PLC ADRSmyj$27.2 Bil

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