PING AN OF CHINA(601318) 太平洋·2024-10-29 02:17Investment Rating - Buy/Maintain rating for Ping An Insurance (601318) with a target price of 57.70 [1] Core Views - Ping An Insurance's Q3 2024 report shows strong growth in New Business Value (NBV) and significant profit growth driven by investment returns [1] - The company achieved a net profit attributable to shareholders of 1191.8 billion yuan, up 36.1% YoY, and an operating profit of 1138.2 billion yuan, up 5.5% YoY [1] - The annualized ROE stood at 15.9%, with growth driven by the expansion of core businesses and a recovery in the capital market [1] Business Performance Life Insurance - Life insurance operating profit reached 827.0 billion yuan, up 3.0% YoY, with NBV at 351.6 billion yuan, up 34.1% YoY [1] - Agent channel NBV increased by 31.6% YoY, with per-agent NBV growing by 54.7% and the number of agents reaching 362,000 [1] - Bancassurance channel NBV surged by 68.5% YoY, driven by exclusive agency agreements with Ping An Bank and cooperation with major state-owned banks [1] - Community financial services channel NBV increased by over 300.0%, reflecting continuous breakthroughs in customer value management [1] Property and Casualty Insurance - Property and casualty insurance operating profit reached 139.9 billion yuan, up 39.7% YoY [1] - Gross premiums written amounted to 2393.7 billion yuan, up 5.9% YoY, with auto insurance contributing 1605.4 billion yuan, up 3.8% YoY [1] - Non-auto insurance premiums were 552.4 billion yuan, up 3.5% YoY, while accident and health insurance premiums reached 235.9 billion yuan, up 31.7% YoY [1] - The combined ratio (COR) improved to 97.8%, down 1.5 percentage points YoY, with a slight increase in auto insurance COR to 98.2% due to rising liability costs and natural disasters [1] Investment Performance - The annualized comprehensive and net investment yields for the insurance fund investment portfolio were 5.0% and 3.8%, respectively, up 1.3 percentage points and down 0.2 percentage points YoY [1] - Equity market recovery in Q3 2024 contributed to the improvement in investment returns [1] - Debt plan and debt-type wealth management product investments totaled 3761.7 billion yuan, accounting for 7.1% of the portfolio, while real estate investments stood at 2050.3 billion yuan, accounting for 3.9% [1] Integrated Financial Strategy - The number of individual customers reached 240 million, up 3.8% from the beginning of the year, with 88.26 million customers holding contracts with multiple subsidiaries [1] - Customers holding four or more contracts within the group accounted for 25.1% of the total [1] - Cross-selling migration reached 16.88 million person-times in the first three quarters of 2024, reflecting the deepening of the integrated financial strategy [1] Financial Forecasts - Revenue is projected to be 10088.33 billion yuan in 2024, 10781.05 billion yuan in 2025, and 11574.71 billion yuan in 2026 [3] - Net profit attributable to shareholders is expected to be 1249.27 billion yuan in 2024, 1384.26 billion yuan in 2025, and 1544.45 billion yuan in 2026 [3] - EPS is forecasted to be 6.86 yuan in 2024, 7.60 yuan in 2025, and 8.48 yuan in 2026, with corresponding P/E ratios of 8.41x, 7.59x, and 6.80x [3] Industry Outlook - The insurance industry is expected to benefit from the recovery in the capital market and the continued growth of core businesses [1]