Financial Performance - In the first half of 2024, the group achieved an operating profit attributable to shareholders of RMB 78.482 billion, with an annualized operating ROE of 16.4%[4] - The bank's net profit for the first half of 2024 was RMB 25.879 billion, reflecting a year-on-year growth of 1.9%[4] - Net profit attributable to shareholders reached RMB 74.619 billion, representing a year-on-year growth of 6.8%[11] - The total assets of the company as of June 30, 2024, were RMB 12,226.67 billion, compared to RMB 11,583.42 billion at the end of 2023[6] - The total operating profit for the group was RMB 78.482 billion, a decrease of 0.6% compared to the previous year[28] - The annualized operating ROE for the same period was 16.4%, down from 17.6% in 2023[23] - The operating profit for the first half of 2024 was RMB 56,301 million, up by 1.3% from RMB 55,564 million in 2023[41] - The total liabilities increased by 5.9% to RMB 10,961,716 million from RMB 10,354,453 million[184] Insurance Business Performance - The new business value of life and health insurance reached RMB 22.320 billion, representing a year-on-year growth of 11.0%[4] - The life and health insurance segment contributed RMB 54.657 billion to the operating profit, while the property insurance and banking segments contributed RMB 9.909 billion and RMB 14.999 billion, respectively[26] - The new business profit margin for life insurance was 10.3%, a slight decrease of 0.3 percentage points compared to the previous year[32] - The total scale premium for life and health insurance business in the first half of 2024 reached RMB 387.766 billion, compared to RMB 379.918 billion in 2023, indicating a growth of 2.2%[44] - The new business value for the first half of 2024 was RMB 22,320 million, representing an 11.0% increase from RMB 20,112 million in the same period last year[20] Investment Performance - The investment portfolio of insurance funds achieved an annualized comprehensive investment return of 4.2%, up by 0.1 percentage points year-on-year[4] - The total investment income for the first half of 2024 was RMB 8.59 billion, representing a 6.7% increase from RMB 8.04 billion in the previous year[50] - The company's investment portfolio achieved an annualized comprehensive investment return rate of 4.2% in the first half of 2024, an increase of 0.1 percentage points year-on-year, primarily due to a balanced asset allocation strategy[69][64] - The net investment yield was 3.3% for the first half of 2024, a decrease of 0.2 percentage points compared to the previous year[64] Customer and Market Engagement - As of June 30, 2024, the number of individual life insurance sales agents reached 340,000, with a per capita new business value growth of 36.0%[4] - The registered user count for the "Ping An Good Car Owner" app exceeded 218 million, with over 142 million vehicles linked[13] - Over 63% of Ping An's 236 million individual customers utilized services from the medical and elderly care ecosystem, with an average of 3.36 contracts per customer[15] - The average number of contracts per individual customer was 2.93, with over 87.92 million customers holding contracts from multiple subsidiaries[123] Digital Transformation and Innovation - The company emphasizes digital transformation to enhance customer service and operational efficiency[11] - The company is implementing a dual-driven strategy of "comprehensive finance + medical care and elderly care" supported by technology[25] - The company has established an internal credit rating team to manage investment risks effectively, ensuring a robust risk management framework[73] - The company continues to enhance its technology capabilities, employing over 20,000 technology developers and 3,000 scientists[111] Dividend and Capital Management - The interim cash dividend per share is set at RMB 0.93, consistent with the previous year[7] - The company plans to distribute an interim cash dividend of RMB 0.93 per share, maintaining stable cash dividend levels[12] - The cash dividend payout ratio based on attributable operating profit for 2023 is 37.3%[189] - The actual capital as of June 30, 2024, is RMB 1,749,657 million, up from RMB 1,714,110 million at the end of 2023[192] ESG and Sustainable Development - The company has invested nearly RMB 9.46 trillion to support the development of the real economy as of June 30, 2024[5] - The scale of green investments by the company reached RMB 124.877 billion, with green loan balances at RMB 164.634 billion[197] - The company has cumulatively invested over CNY 1.5 trillion directly into the real economy through various investment plans, with an additional CNY 27 billion in new investments in the first half of 2024[199] - The ESG management framework consists of four levels: strategic, management, execution, and practice, ensuring comprehensive oversight and integration of ESG matters[198]

Investment Rating - The report maintains a "Buy" rating for the company, China Ping An Insurance (2318 HK), with a target price of HKD 51.00, indicating a potential upside of 48.7% from the current closing price of HKD 34.30 [1][3][23]. Core Insights - The company's major business indicators are performing well, and its valuation appears low, prompting a reaffirmation of the "Buy" rating. The individual insurance agents have stabilized and shown a slight recovery, with a total of 340,000 agents, a 2% decrease year-to-date but a 0.7 thousand increase quarter-on-quarter, marking the first quarter-on-quarter increase since Q3 2020 [1][3]. - The new business value for the first half of the year grew by 11% year-on-year, aligning with expectations. The new business value margin increased to 24.2%, up 6.5 percentage points year-on-year, driven by product structure optimization and extended payment terms [2][3]. - The strategic layout of comprehensive finance and medical pension services has created a differentiated competitive advantage, with an upgrade to the 2.0 customer management phase. The profit forecast for 2024 has been raised, expecting a 13% year-on-year growth in OPAT from a low base [3][15]. Financial Performance Summary - For the first half of 2023, the company reported a net profit attributable to shareholders of RMB 69.841 billion, a 6.8% increase year-on-year, while OPAT slightly decreased by 0.6% to RMB 78.950 billion. The core business segments showed growth, with property insurance up 7.2%, life and health insurance up 0.7%, and banking up 1.9% [6][15]. - The new business value for the first half of 2023 was RMB 20.112 billion, with a year-on-year growth of 11%. The number of individual insurance agents decreased by 9.1% year-on-year [6][7]. - The company expects a net profit of RMB 111.464 billion for 2024, reflecting a 30.1% year-on-year increase, with an operating ROAE of 12.0% [19][24].

Investment Rating - The report maintains a "BUY" rating for Ping An, with a target price (TP) unchanged at HK$52.0, implying a 0.6x FY24E P/EV [1]. Core Insights - Ping An reported resilient 1H24 results with a year-on-year (YoY) increase in new business value (NBV) of 11% to RMB 22.3 billion, surpassing forecasts by 3.6% and market consensus by 9.5% [1]. - The report anticipates a turnaround in Group operating profit after tax (OPAT) in FY24, driven by improved operating efficiency and a low base effect from the previous year [1]. - The NBV margin improved to 24.2%, reflecting a 6.5 percentage point increase YoY, indicating a focus on margin expansion rather than volume growth [1]. Summary by Sections New Business Value (NBV) - Ping An's NBV for 1H24 reached RMB 22.3 billion, an 11% increase YoY, with 2Q24 stabilizing at RMB 9.43 billion [1][3]. - The agency and bancassurance channels contributed significantly, with NBV growth of 10.8% and 17.3% YoY, respectively [1][3]. - The NBV margin increased to 24.2%, up 6.5 percentage points YoY, indicating improved profitability [1][3]. Operating Profit After Tax (OPAT) - Group OPAT declined by 0.6% YoY in 1H24, with core business lines showing a 1.7% YoY increase to RMB 79.6 billion [1]. - The report expects full-year Group OPAT to grow by 3.9% YoY, supported by stabilized life and health (L&H) OPAT and enhanced property and casualty (P&C) underwriting profit [1]. Property and Casualty (P&C) Performance - The P&C combined ratio (CoR) was 97.8% in 1H24, a slight improvement of 0.2 percentage points YoY, with a notable scale-back in high-loss guarantee business [1][10]. - P&C underwriting profits increased by 15.3% YoY to RMB 3.5 billion, driven by higher insurance revenue [1][10]. Valuation Metrics - The stock is currently trading at 0.42x FY24E P/EV and 0.61x FY24 P/BV, with a dividend yield of 7.6% and an average ROE of 12.3% over three years [1][19]. - The report highlights a positive outlook for the Group's OPAT turnaround, particularly in the asset management and technology segments [1][19].

Financial Performance - In the first half of 2024, the operating profit attributable to shareholders of the parent company was RMB 78.482 billion, a decrease of 0.6% year-on-year, while the net profit attributable to shareholders increased by 6.8% to RMB 74.619 billion[11]. - The operating profit for the first half of 2024 was RMB 56.301 billion, compared to RMB 55.564 billion in the first half of 2023[20]. - The net profit for the first half of 2024 was RMB 52.22 billion, reflecting a 12.7% increase year-on-year[29]. - Operating profit attributable to shareholders for the six months ended June 30, 2024, was RMB 78,482 million, a decrease of 0.6% compared to RMB 78,950 million in 2023[66]. - Net profit attributable to shareholders increased by 6.8% to RMB 74,619 million from RMB 69,841 million year-on-year[66]. - The bank's net profit for the first half of 2024 was RMB 25.879 billion, a year-on-year increase of 1.9%[84]. - The total investment income for the first half of 2024 was RMB 8.586 billion, representing a 6.7% increase compared to the previous year[147]. - The total insurance premium income for the first half of 2024 was RMB 160,397 million, a 4.9% increase from RMB 154,136 million in the same period last year[184]. Business Segments - The operating profit from the life and health insurance business was RMB 54.657 billion, while the property insurance business contributed RMB 9.909 billion and the banking business contributed RMB 14.999 billion[13]. - The new business value of the life and health insurance segment grew by 11.0% year-on-year, with the agent channel's new business value increasing by 10.8% and per capita new business value rising by 36.0%[27]. - The new business value for the first half of the year reached RMB 22,320 million, an increase of 11.0% year-on-year[37]. - The insurance service revenue from property insurance was RMB 161.91 billion, showing a year-on-year growth of 3.9%[84]. - Health insurance premium income amounted to RMB 10,090 million, representing a significant year-on-year growth of 43.5%[175]. - The original insurance premium income from auto insurance was RMB 104.824 billion, a year-on-year increase of 3.4%, with the number of insured vehicles growing by 5.9%[197]. Customer Engagement and Services - The company has served nearly 16 million customers in health management and provided home care services to over 120,000 customers across 64 cities by mid-2024[28]. - The number of individual customers using the medical and elderly care ecosystem reached 14,922,000, up 1.4% compared to the end of 2023[37]. - The company launched the "11312" one-stop proactive health management service system under the upgraded "Ping An Family Doctor" service brand in June 2024[69]. - The number of individual customers reached 236 million, with a customer retention rate of 97.8%[128]. - The company added 13.92 million new customers in the first half of 2024, driven by a comprehensive financial service model[128]. Technology and Innovation - The company holds 1,564 generative AI patent applications, ranking second globally according to the latest WIPO report[71]. - AI service volume reached approximately 870 million instances in the first half of 2024, with intelligent fraud detection reducing losses by RMB 6.1 billion, a year-on-year increase of 4.3%[71]. - The company emphasizes a comprehensive digital transformation to enhance service quality and efficiency across its financial ecosystem[83]. - The company has over 20,000 technology developers and more than 3,000 scientists, enhancing its technological capabilities[71]. Capital and Solvency - The group’s total liabilities to total assets ratio increased by 0.3 percentage points to 89.7%[23]. - The solvency adequacy ratio under the second phase of the solvency regulation was 208.8%, significantly above regulatory requirements[41]. - The core tier one capital adequacy ratio was 9.33%, up 0.11 percentage points compared to the end of 2023[37]. - The comprehensive solvency adequacy ratio significantly exceeded regulatory requirements as of June 30, 2024[183]. Dividends and Shareholder Returns - The total cash dividend for 2023 was RMB 44,002 million, with a cash dividend per share of RMB 2.43, reflecting a growth rate of 0.4%[44]. - The company plans to distribute a mid-year dividend of RMB 0.93 per share for 2024[64]. - The interim dividend per share remained stable at RMB 0.93, unchanged from the previous year[66]. Market Position and Recognition - The company ranked 53rd in the Fortune Global 500 and maintained its position as the top global insurance company[32]. - The cumulative cash dividend over the past five years has a compound annual growth rate of 7.0%[44].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 51.00, indicating a potential upside of 48.9% from the current price of HKD 34.25 [1][3][10]. Core Insights - The company is expected to face pressure on performance in the first half of 2024, but its valuation remains attractive. The new business value is projected to grow by 12% year-on-year, primarily driven by an increase in the new business value rate [1][2]. - The report highlights a decline in new individual insurance premiums by 5.2% year-on-year in the first half of 2024, with a slight improvement in the new business value rate to 23.1% in the second quarter [1][2]. - The company plans to issue USD 3.5 billion in 5-year convertible bonds, which will provide investors with the option to convert to shares, thereby reducing financing costs and having a limited dilution effect [3][6]. Financial Performance Summary - The expected comprehensive cost ratio for the property and casualty insurance segment is 99.4%, reflecting a year-on-year increase of 1.4 percentage points due to a slowdown in auto insurance growth and natural disaster impacts [2][6]. - The report anticipates a 3% year-on-year decline in operating profit attributable to the parent company (OPAT) for the first half of 2024, with a more significant decline of 18% in the property insurance segment [2][6]. - The net profit for the first half of 2024 is expected to decrease by 2% year-on-year, with a potential recovery in profit growth in the second half of the year [2][6]. Business Segment Insights - The life and health insurance segment is projected to maintain stable performance, while the property insurance segment is expected to see a significant decline in profits due to concentrated underwriting losses from credit guarantee insurance [2][6]. - The new business value for the life insurance segment is expected to reach RMB 96 billion, reflecting a 2% year-on-year increase, with the new business value rate improving to 22.9% [1][6][7]. Valuation Metrics - The company currently has a dividend yield exceeding 7%, and the report suggests a high certainty of a year-on-year recovery in operating profit for 2024 [3][6]. - The report provides updated forecasts for key financial metrics, including a projected net profit of RMB 94.825 billion for 2024, which is a 3.5% decrease from previous estimates [7][13].

Investment Rating - The report maintains a BUY rating for Ping An with a target price of HK$52.00, implying a potential upside of 52.5% from the current price of HK$34.10 [5][4]. Core Insights - The issuance of US$3.5 billion convertible bonds is expected to have a limited dilutive impact of approximately 3.43% on existing shares, with the initial conversion price set at HK$43.71, representing a premium of 21.2% over the closing price on July 15, 2024 [4][20]. - The potential use of proceeds from the convertible bonds is aimed at boosting the core solvency ratio of Ping An Life, which is projected to rise by 6.4 percentage points to 125.2% in 1Q24, assuming all proceeds are injected into the business [4][29]. - The stock is currently trading at FY24E 0.48x P/EV and 0.70x P/B, with an expected dividend yield of 8.0% and FY24E ROE at 13.2% [4][17]. Financial Summary - For FY24E, the net profit is estimated at RMB 154.021 billion, with an EPS of RMB 7.18, reflecting a growth trajectory from previous years [17][24]. - The core solvency ratio for Ping An Life was reported at 118.8% in 1Q24, which is above the industry average of 113.5% [4][29]. - The comprehensive solvency ratio for Ping An P&C is projected to be 199.1% in 1Q24, indicating strong financial health [9][4]. Share Capital and Structure - Following the full conversion of the bonds, the total number of H-shares will increase to approximately 8.07 billion, accounting for 42.9% of the enlarged share capital [4][20]. - The report also notes the cancellation of 102.6 million A-shares, which will partially offset the dilutive effect of the convertible bonds and increase the H-share proportion to 43.1% [4][20]. Valuation Metrics - The report highlights a projected dividend yield of 8.0% for FY24E, with a consistent increase in dividend payouts expected over the next few years [17][35]. - The P/B ratio is expected to decrease to 0.63x by FY25E, indicating a potential undervaluation of the stock [40][17].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$52.00, implying a 52.5% upside from the current price of HK$34.10 [2][4]. Core Insights - The company announced the issuance of US$3.5 billion in convertible bonds (CB) with a conversion premium of 21.2%, which is expected to have a limited dilution effect of approximately 3.43% on existing shares [5][12][23]. - The financing is anticipated to support the core subsidiary, Ping An Life, with a relatively low cost of capital, enhancing its solvency ratios [5][15]. - The estimated core solvency ratio for Ping An Life is projected to increase by 6.4 percentage points to 125.2% following the capital injection from the CB issuance [5][26]. Financial Summary - The company’s projected net profit for FY24E is estimated at RMB 154.021 billion, with an EPS of RMB 7.18 [5][46]. - The dividend per share (DPS) is expected to be HK$2.53 for FY24E, reflecting a dividend yield of 8.0% [5][46]. - The return on equity (ROE) is projected to be 13.2% for FY24E, indicating a positive trend in profitability [5][46]. Valuation Metrics - The stock is currently trading at a price-to-earnings (P/E) ratio of 0.48x for FY24E and a price-to-embedded value (P/EV) of 1.0x [2][46]. - The estimated net asset return rate is 13.2% for FY24E, which is favorable compared to industry averages [5][46]. Market Performance - The stock has experienced a decline of 5.41% following the CB announcement, but this is viewed as a short-term fluctuation [2][6]. - The company’s market capitalization is approximately HK$620.961 billion, with a 52-week high of HK$56.25 and a low of HK$29.80 [9].

Investment Rating - The report maintains a "Buy" rating for Ping An Insurance, with a target price of HKD 51, indicating a potential upside of 38.4% from the current price of HKD 36.85 [7][18]. Core Insights - Ping An's decision to receive special dividends in shares rather than cash has increased its stake in Lufax from 41.4% to 56.82%, allowing it to consolidate Lufax as a subsidiary in its financial statements [5][7]. - Lufax reported a turnaround in its pre-tax profit for Q1 2024, although it is still expected to incur losses for the full year. However, significant improvement in profitability is anticipated for 2025 [1][7]. - The share price of Lufax's American Depositary Shares (ADS) was noted at USD 2.95, which is higher than the offer price of USD 2.254, indicating that Ping An has no intention of privatizing Lufax or changing its listing status [2][7]. Summary by Sections Shareholding Structure Changes - Prior to the special dividend, Ping An held 41.4% of Lufax, with the second-largest shareholder, Tun Kung, holding 26.87%. After the dividend distribution, Ping An's stake increased to 56.82%, while Tun Kung's stake decreased to 17.78% [5][27]. - The new shareholding structure post-dividend distribution shows Ping An's significant increase in ownership, which reflects confidence in Lufax's business prospects [5][7]. Financial Implications - The consolidation of Lufax will result in financial changes for Ping An, but these will be classified as non-recurring items and will not affect its operating profit after tax (OPAT) [7]. - The report projects that Ping An's operating profit for 2024 is likely to show positive growth from last year's low levels, reinforcing the attractiveness of its current valuation [7].

Investment Rating - Maintain BUY rating with a target price of HK$52.00, implying a 51.2% upside from the current price of HK$34.40 [2][3]. Core Insights - The first-quarter results for Ping An show resilience in core lines, with Life VNB increasing by 20.7% YoY to RMB12.9 billion, surpassing market consensus and previous estimates [2]. - The growth in VNB is attributed to a significant rise in VNB margin, which increased by 6.5 percentage points YoY to 22.8%, despite sluggish sales in the 2024 jumpstart period [2]. - Group OPAT decreased by 3.0% YoY to RMB38.7 billion, but this is a significant improvement from a decline of 19.7% YoY by the end of 2023 [2]. - Life & Health OPAT turned positive with a growth of 2.2% YoY to RMB27.3 billion, contributing to a 0.3% YoY OPAT growth across the three core segments: Ping An Life & Health, P&C, and PAB [2]. - Asset management returned to profitability with a net profit of RMB910 million in 1Q24, compared to a loss of RMB20.7 billion by the end of 2023 [2]. Summary by Sections Life Insurance - Life VNB rose by 20.7% YoY to RMB12.9 billion in 1Q24, driven by a VNB margin increase to 22.8% [2][16]. - The number of life insurance agents decreased by 4.0% YoY to 0.33 million, but the productivity per agent increased by 56.4% YoY [2][16]. Property & Casualty (P&C) Insurance - P&C insurance revenue grew by 5.7% YoY to RMB80.6 billion, with a combined ratio (CoR) of 99.6%, reflecting a 0.9 percentage point increase [2][16]. - Underwriting profit in P&C declined by 67.5% YoY to RMB323 million, attributed to increased claims from catastrophes [2][16]. Asset Management - The asset management segment reported a net profit of RMB910 million in 1Q24, a recovery from a significant loss in the previous year [2][16]. Financial Projections - FY24-26E EPS revised down to RMB6.42, RMB7.05, and RMB7.61, respectively, from previous estimates of RMB6.94, RMB7.87, and RMB8.62 [2][3]. - The stock is currently trading at FY24 0.47x P/EV and 0.71x P/B, with potential upside driven by improved market sentiment and rising investment yields [2][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 51.00, indicating a potential upside of 48.3% from the current closing price of HKD 34.40 [1][3][4]. Core Insights - The company's earnings performance is stable, with new business value exceeding expectations. In Q1 2024, the operating profit after tax (OPAT) decreased by 3% year-on-year, primarily due to declines in technology, property and casualty insurance, and asset management sectors. However, life and health insurance grew by 2.2%, and banking increased by 2.3%, partially offsetting the declines [1][2]. - The new business value saw a significant increase of 20.7% year-on-year, with the new business value rate rising to 22.8%, up by 6.5 percentage points, driven by a shift towards protection-type products and longer payment cycles [2][3]. - The comprehensive cost ratio for property and casualty insurance increased to 99.6%, reflecting a 0.9 percentage point rise year-on-year, while investment yields slightly declined [2][3]. Financial Performance Summary - In Q1 2024, the company's net profit attributable to shareholders was RMB 36,709 million, down 4.3% year-on-year, while OPAT was RMB 38,709 million, a decrease of 3.0% [8]. - The life and health insurance segment reported OPAT of RMB 27,288 million, a growth of 2.2% year-on-year, while the property insurance segment saw a decline of 14.3% [8]. - The asset management sector turned profitable compared to Q4 2023, with expectations of improved profitability moving forward [1][3]. Earnings Forecast Adjustments - The report projects an increase in new business value for 2024E to RMB 35,359 million, reflecting a 14.2% adjustment from previous estimates [8]. - The new business value rate is expected to rise to 23.6% for 2024E, indicating continued improvement in product structure and profitability [8][9]. - The forecast for net profit attributable to shareholders for 2024E is set at RMB 98,288 million, representing a 14.7% year-on-year growth [9].