PING AN OF CHINA(601318) 长江证券·2024-10-23 04:39Investment Rating - Maintains a "Buy" rating with a 2024 PEV valuation of 0.69x, indicating the stock is in a bottom range [1][4] Core Views - The primary industry challenge remains asset-side factors, with attention needed on long-term interest rates, equity markets, and the real estate sector [1] - In a scenario of marginal improvement, the company has significant upside potential [1] - The company continues to advance channel reforms, emphasizing supply-side innovation and deepening businesses in healthcare, elderly care, and integrated finance [1] - The ecosystem advantages are expected to help build future product and pricing barriers [1] Financial Performance - Net profit attributable to shareholders in Q3 2024 reached RMB 119.182 billion, up 36.1% YoY [3] - New business value (NBV) for the first three quarters of 2024 was RMB 35.16 billion, up 34.1% YoY on a comparable basis [3] - Net investment yield and comprehensive investment yield were 3.8% and 5.0%, respectively, with the latter increasing by 1.3pct YoY [3] - Lufax's consolidation contributed a one-time profit impact of RMB 12.755 billion [3] Business Highlights - NBV growth was driven by improved NBV margins, with first-year premium NBV margin rising 7.3pct to 25.4% [3] - Individual agent force stabilized and rebounded, reaching 362,000 by the end of Q3, up from 340,000 in the first half [3] - Agent productivity improved significantly, with per capita NBV up 54.7% YoY [3] - Bancassurance and community channels contributed 18.8% of NBV, up 2.4pct YoY [3] - Property and casualty insurance underwriting profit improved, with a combined ratio of 97.8%, down 1.5pct YoY [3] Future Outlook - Short-term focus remains on asset-side factors, with potential upside in a marginally improving environment [4] - Long-term growth is supported by ongoing channel reforms, supply-side innovation, and ecosystem advantages [4]