Financial Performance - The company reported audited financial results for the year ending December 31, 2024, in compliance with the Hong Kong Stock Exchange listing rules[2]. - Operating profit attributable to shareholders increased to RMB 121.862 billion in 2024, compared to RMB 111.728 billion in 2023, marking a growth of 9.6%[10]. - Net profit attributable to shareholders rose significantly to RMB 126.607 billion in 2024, up from RMB 85.665 billion in 2023, reflecting a growth of 47.8%[10]. - Total assets grew to RMB 12.958 billion in 2024, an increase from RMB 11.583 billion in 2023, indicating a growth of 11.9%[10]. - The operating return on equity (ROE) improved to 12.7% in 2024, compared to 12.5% in 2023[10]. - Total revenue amounted to CNY 1,141.35 billion, representing a year-on-year increase of 10.6%[43]. - The basic earnings per share for 2024 is RMB 6.89, which is a 9.2% increase compared to the previous year[148]. - The total equity attributable to the parent company's shareholders increased by 9.3% to RMB 1,002,889 million as of December 31, 2024[160]. Customer Growth and Retention - The number of individual customers reached 24.247 million in 2024, up from 23.157 million in 2023, representing a growth of 4.7%[10]. - The number of personal customers increased by 4.7% year-to-date, reaching 242 million[53]. - The number of customers holding four or more contracts increased to 6.218 million in 2024, up from 5.856 million in 2023, a growth of 6.2%[10]. - The customer retention rate for individual customers improved to 90.9%, an increase of 1.6 percentage points year-on-year[97]. - The retention rate for customers with 4 or more contracts is 98.0%, which is 11.5 percentage points higher than those with only one contract[101]. - The average number of contracts per individual customer is 2.92, with an average profit of 446.90 yuan per person[32]. Business Segments and Innovations - The company anticipates significant growth in its core business segments, driven by digital transformation and innovation[9]. - The new business value for 2024 is projected to reach RMB 40.024 billion, representing a growth of 28.8% compared to the previous year[11]. - The net profit from property insurance business increased to RMB 15.021 billion in 2024, compared to RMB 8.958 billion in 2023, a growth of 67.5%[10]. - The health insurance premium income exceeded RMB 140 billion, with over 31 million strategic business paying users in the past 12 months[69]. - The company has implemented AI-driven underwriting processes, achieving instant policy approvals for life insurance[9]. - The company is exploring new market expansions and potential acquisitions to strengthen its competitive position[4]. Strategic Initiatives - The company aims to serve 240 million customers through comprehensive digitalization, enhancing efficiency and cost-effectiveness[9]. - The company plans to invest 100 billion in interest-free funds to support rural revitalization initiatives[9]. - The company is focusing on green development, with insurance products aimed at protecting natural resources[9]. - The company is committed to integrating financial and healthcare services, leveraging technology for better customer experiences[9]. - The company aims to build a comprehensive service system through standardization, centralized procurement, and service supervision[35]. - The company is actively responding to the national "Healthy China" strategy by providing proactive medical health management services[35]. Technology and Efficiency - AI coverage rate for customer service reached 80%, significantly enhancing service efficiency[40]. - The company is leveraging technology to enhance service efficiency, reduce costs, and improve risk management[30]. - In 2024, AI service volume reached approximately 1.84 billion times, covering 80% of total customer service volume, with 93% of life insurance policies underwritten in seconds and 56% of claims processed instantly[72]. - The intelligent claims interception in Ping An Property Insurance reduced losses by 11.94 billion yuan, representing a year-on-year growth of 10.4%[72]. Corporate Governance and Social Responsibility - The company has been recognized for its corporate governance and social responsibility, ranking 53rd in the Fortune Global 500 and 9th among global financial companies[82]. - The company has established a strong online and offline channel network with over 7,000 offline outlets covering 330 cities and a sales service team of over 1.3 million[89]. Future Outlook - The company plans to accelerate the integration of artificial intelligence and big data technologies, with a focus on digital transformation as a key priority for 2025[77]. - Ping An aims to enhance customer management and achieve steady growth in customer acquisition, retention, and migration, focusing on the "Three Numbers" strategy[76]. - The company is committed to increasing investments in strategic emerging industries, advanced manufacturing, and new infrastructure, reflecting a responsible approach to capital allocation[78].

Investment Rating - The report maintains a "Buy" rating for China Ping An, suggesting investors pay attention to the company [2]. Core Views - China Ping An is a comprehensive financial company that continues to deepen its "one customer, multiple products, one-stop service" model to meet diverse financial needs [2]. - The operating profit of the three core businesses remains robust, with a total operating profit attributable to shareholders of RMB 113.82 billion for the first three quarters of 2024, representing a year-on-year increase of 5.5% [2]. - The new business value from the agent channel has significantly improved, with a year-on-year increase of 34.1% in new business value for life and health insurance [2]. Financial Performance Summary - For the first three quarters of 2024, the group achieved an operating profit of RMB 113.82 billion, a 5.5% increase year-on-year, and a net profit of RMB 119.18 billion, a 36.1% increase year-on-year [2]. - The annualized operating ROE as of September 30, 2024, was 15.9%, a decrease of 0.1 percentage points year-on-year [2]. - The new business value for life and health insurance reached RMB 35.16 billion, a 34.1% increase year-on-year, with the agent channel's new business value growing by 31.6% [2]. - The property insurance service revenue for the first three quarters of 2024 was RMB 246.02 billion, a 4.5% increase year-on-year, with operating profit increasing by 39.7% [2]. - The investment portfolio of insurance funds grew to over RMB 5.32 trillion, a 12.7% increase from the beginning of the year, with an annualized comprehensive investment return rate of 5.0%, up 1.3 percentage points year-on-year [2]. Key Financial Indicators - The projected operating revenue for 2024 is RMB 990.9 billion, with a year-on-year growth of 8.4% [3]. - The projected net profit attributable to shareholders for 2024 is RMB 128.3 billion, representing a year-on-year increase of 49.7% [3]. - The projected new business value for 2024 is RMB 40.4 billion, with a year-on-year growth of 30.0% [3]. - The projected EPS for 2024 is RMB 7.24, compared to RMB 4.84 in 2023 [3].

Investment Rating - The report maintains a "BUY" rating for Ping An, with a revised target price of HK$65.1, representing a 35.2% upside from the current price of HK$48.15 [2][5]. Core Insights - Ping An reported robust earnings growth in Q3, with Group net profit and Life & Health (L&H) New Business Value (NBV) more than doubling year-on-year. The Group's Operating Profit After Tax (OPAT) attributable to shareholders grew 5.5% YoY to RMB 113.8 billion, indicating a steady recovery trajectory [1][10]. - The L&H NBV rose 34.1% YoY to RMB 35.2 billion in the first nine months of 2024, with Q3 showing a remarkable growth of 110.2% YoY to RMB 12.8 billion, driven by margin expansion and a stable agency force [1][11]. - The Property & Casualty (P&C) segment saw OPAT surge 455% YoY to RMB 4.0 billion in Q3, supported by improved underwriting and a better combined ratio [1][12]. Summary by Sections Earnings Performance - Group NPAT rose 36.1% YoY in the first nine months of 2024, with a significant surge of 1.51x YoY in Q3. The L&H segment's OPAT grew 3.0% YoY, while P&C's OPAT saw a dramatic increase [1][10][15]. - The report revises FY24-26 EPS forecasts upward by 14%/7%/3% to RMB 7.44/7.57/7.90, reflecting a clearer outlook for profitability [5][6]. New Business Value (NBV) - The L&H NBV margin increased to 25.4%, with expectations to rise to ~26% by the end of FY24. The agency force stabilized at 362,000 agents, contributing significantly to the NBV growth [1][11][7]. - Bancassurance NBV surged 68.5% YoY, driven by a favorable product mix and margin expansions [1]. Investment Performance - The comprehensive investment yield (CIY) reached 5%, up 1.2 percentage points YoY, indicating a positive investment experience variance that could enhance the Group's embedded value [6][14]. - The report anticipates better-than-expected earnings in the second half of 2024, supported by rebounding investment income and a low base from Q4 2023 [1][5]. Valuation Metrics - The stock is currently trading at 0.54x FY24 P/EV and 0.81x FY24 P/B, which is above the historical average for H-share listed Chinese insurers. The report suggests limited downside risk due to the turnaround in fundamentals [1][5][9]. - The sum-of-the-parts valuation assigns target multiples of 1.19x for L&H, 0.72x for P&C, and 0.90x for banking, leading to a target valuation of RMB 1,059 billion for the Group [8][9].

Financial Performance - For the first three quarters of 2024, the company achieved an operating profit of RMB 113.82 billion, a year-on-year increase of 5.5%[5] - The net profit attributable to shareholders for the same period was RMB 119.18 billion, reflecting a significant year-on-year growth of 36.1%[3] - Total revenue for the first three quarters reached RMB 861.82 billion, marking an 8.7% increase compared to the previous year[3] - Operating profit attributable to shareholders for the nine months ended September 30, 2024, was RMB 82,701 million, an increase from RMB 80,310 million in the same period last year, representing a growth of 2.0%[8] - The total operating profit for the group, including minority interests, reached RMB 134,680 million, compared to RMB 128,556 million in the previous year, reflecting a year-on-year increase of 4.0%[8] - The group reported a net profit of RMB 140,054 million for the nine months ended September 30, 2024, up from RMB 108,111 million in the same period last year, marking a significant increase of 29.5%[8][9] - Total revenue for the nine months ended September 30, 2024, reached RMB 861,817 million, an increase of 8.7% compared to RMB 792,525 million in the same period of 2023[58] - Net profit for the nine months ended September 30, 2024, was RMB 140,054 million, representing a 29.5% increase from RMB 108,111 million in the same period of 2023[59] - Basic earnings per share attributable to ordinary shareholders of the parent company increased to RMB 6.73, up from RMB 4.94 in the same period of 2023, reflecting a growth of 36.3%[59] Customer Metrics - The number of individual customers reached 240.47 million, with a retention rate of 98.0%[1] - The number of individual customers reached 240.47 million as of September 30, 2024, representing a 3.8% increase from 231.57 million at the beginning of the year[11] - The average number of contracts per individual customer decreased slightly to 2.92 from 2.95, indicating a 1.0% decline[12] - The retention rate for clients with four or more contracts is 98.0%, significantly higher than the 87.2% retention rate for clients with only one contract, indicating improved customer loyalty[15][16] Business Segments - The new business value for life and health insurance reached RMB 35.16 billion, up 34.1% year-on-year, with agent channel new business value increasing by 31.6%[2] - The property insurance segment reported service revenue of RMB 246.02 billion, a 4.5% increase year-on-year, with an operating profit of RMB 13.99 billion, up 39.7%[2] - The group’s operating profit from life and health insurance business was RMB 85,083 million, while the property insurance business contributed RMB 13,987 million for the same period[8] - The property insurance segment achieved insurance service revenue of RMB 246.02 billion in the first three quarters of 2024, reflecting a 4.5% year-on-year growth, with operating profit increasing by 39.7% to RMB 13.99 billion[21][22] Investment Performance - The investment portfolio achieved an annualized comprehensive investment return of 5.0%, an increase of 1.3 percentage points year-on-year[2] - The investment return rate for life and health insurance businesses was locked at 4.5%, based on long-term investment return assumptions[10] - As of September 30, 2024, the company's insurance fund investment portfolio achieved an annualized comprehensive investment return of 5.0%, an increase of 1.3 percentage points year-on-year[23] - The scale of the insurance fund investment portfolio exceeded 5.32 trillion RMB, growing by 12.7% since the beginning of the year[23] Banking Performance - The bank's net profit for the first three quarters was RMB 39.73 billion, showing a slight increase of 0.2% year-on-year[2] - For the first three quarters of 2024, Ping An Bank reported operating income of 111.58 billion RMB, a decrease of 12.6% year-on-year[25] - Ping An Bank's net profit for the same period was 39.73 billion RMB, a slight increase of 0.2% year-on-year[27] - The non-performing loan ratio remained stable at 1.06% as of September 30, 2024[27] Shareholder Information - As of September 30, 2024, the total share capital of the company is 18,210,234,607 shares, with A-shares accounting for 10,762,657,695 shares and H-shares for 7,447,576,912 shares[38] - The total number of shareholders at the end of the reporting period is 825,539, with A-share shareholders accounting for 37.66% of the total shares held[39] - The top ten A-share shareholders hold a total of 6,857,076,165 shares, representing 37.66% of the total shareholding[39] - The core personnel shareholding plan has a total of 27,067,120 A-shares held, accounting for 0.149% of the company's total share capital[44] Long-term Service and Employee Plans - The company has implemented a long-term service plan with over 140,000 participants, funded by employee compensation amounts[40] - The core personnel shareholding plan has been extended until February 4, 2027, allowing for continued participation by key personnel[43] - The long-term service plan for 2023 involved 83,651 participants, acquiring 96,608,364 shares at a total cost of RMB 4,450,946,615.20, representing 0.528% of the total share capital[47] Cash Flow and Assets - The company's cash and cash equivalents increased to RMB 987,869 million as of September 30, 2024, up from RMB 804,077 million as of December 31, 2023[61] - The total assets as of September 30, 2024, amounted to RMB 12,533,736 million, an increase from RMB 11,583,417 million as of December 31, 2023[61] - The total liabilities as of September 30, 2024, amounted to RMB 11,254,145 million, an increase from RMB 10,354,453 million as of December 31, 2023, representing a growth of 8.7%[62] - The company's retained earnings increased to RMB 698,489 million as of September 30, 2024, compared to RMB 622,050 million as of December 31, 2023, marking a growth of 12.3%[62]

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].