Core Viewpoint - China Ping An Insurance Group plans to issue HKD 11.765 billion zero-coupon convertible bonds due in 2030, convertible into H shares at an initial conversion price of HKD 55.02 per share, representing an 18% premium over the market price on June 3, 2025 [4][6][5]. Group 1: Issuance Overview - The bonds will be issued under a general authorization and will not involve the issuance of A shares [2]. - The total principal amount of the bonds is HKD 11.765 billion, with the initial conversion price set at HKD 55.02 per H share [3][4]. - If fully converted, the bonds would result in approximately 213.83 million new shares, accounting for 2.87% of the existing H shares and 1.17% of the total share capital [6]. Group 2: Financing Purpose - The net proceeds from the bond issuance will be used to support the group's future business development needs, particularly in finance, healthcare, and pension strategies [6][7]. - The issuance is expected to enhance the company's strategic flexibility and competitive strength while maintaining a low financing cost due to the zero-coupon nature of the bonds [6][8]. Group 3: Market Implications - The issuance marks a significant move for insurance companies in the offshore convertible bond market, potentially influencing other insurers to follow suit [5][9]. - Analysts suggest that the issuance could improve liquidity in the H share market and attract more investors, despite concerns about the relatively low interest rate compared to other markets [5][9]. - The issuance is seen as a test of global capital's attitude towards Chinese insurance companies, with the potential for a ripple effect in the industry [5][10]. Group 4: Industry Context - The insurance sector is facing increasing pressure to enhance capital adequacy due to regulatory requirements and market conditions, leading to a sustained demand for capital replenishment [10]. - The trend of issuing convertible bonds is expected to continue as companies seek to optimize their capital structures and meet higher solvency standards [10].

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of HKD 72.00 and RMB 73.00 [8]. Core Views - The company plans to issue HKD 11.765 billion in H-share convertible bonds, which reflects confidence in future growth and allows for lower-cost financing [4]. - The company's new business value (NBV) is expected to grow steadily, with a projected year-on-year increase of 27% for 2025, driven by strong performance in the bancassurance channel and resilient growth in the agent channel [2]. - The investment strategy focuses on high-dividend stocks, with significant investments in major banks to enhance cash returns in a low-interest-rate environment [3]. Summary by Sections Insurance Business - The bancassurance channel has seen a robust growth of 171% year-on-year in NBV for Q1 2025, aided by the removal of restrictions on bank partnerships [2]. - The agent channel also showed resilience, with a 12% year-on-year increase in NBV for Q1 2025, driven by improved value rates [2]. Investment Strategy - The company emphasizes the allocation of FVOCI stocks and has actively increased stakes in banks since December 2024 to boost dividend income [3]. - The current low bond yields have led to a potential slowdown in bond allocation, with the 30-year government bond yield at 1.89% compared to a new policy rate of 2.5% for traditional life insurance [3]. Financial Projections - The company maintains its earnings per share (EPS) forecasts at RMB 7.37, RMB 7.83, and RMB 8.31 for 2025, 2026, and 2027 respectively [5]. - The projected gross premium income for 2025 is RMB 584.644 billion, reflecting a 6.07% year-on-year growth [7]. - Total investment income is expected to reach RMB 209.034 billion in 2025, marking a 29.78% increase from the previous year [7].

Core Viewpoint - Major insurance companies in China are entering a capital replenishment window, with China Ping An Insurance Group announcing a bond issuance of HKD 11.765 billion, convertible into H-shares, amid increasing operational pressures in the insurance market [1][3]. Group 1: Capital Replenishment Activities - China Ping An plans to issue zero-coupon convertible bonds totaling HKD 11.765 billion, with an initial conversion price of HKD 55.02 per H-share, representing an approximately 18% premium over the market price [3]. - Other leading insurance companies, including Taiping Life, Sunshine Life, and Taikang Life, have also engaged in capital replenishment through bond issuance this year [1][5]. - The demand for capital replenishment is expected to remain high as insurance companies face operational pressures and regulatory requirements for higher capital adequacy ratios [5][6]. Group 2: Market Conditions and Regulatory Environment - The insurance industry is experiencing intensified competition and downward pressure on interest rates, prompting companies to seek capital to enhance competitiveness and risk resilience [1][5]. - The current low interest rate environment allows insurance companies to issue bonds at a lower cost, making it an opportune time to secure funding [5]. - Regulatory frameworks, such as the "Solvency II" phase II, are pushing insurance companies to meet stricter capital adequacy requirements, further driving the need for capital replenishment [5][6]. Group 3: Future Outlook - The trend of issuing bonds for capital replenishment is likely to continue, with both major and smaller insurance companies expected to maintain high levels of capital replenishment needs [5][6]. - The use of perpetual bonds and other capital-raising tools is anticipated to become more common among leading insurance firms [6].

Investment Rating - The investment rating for Ping An Insurance (601318) is "Buy" (maintained) [2][7] Core Views - On June 4, Ping An announced the issuance of HKD 11.765 billion convertible bonds to support capital needs and strategic development in healthcare and elderly care [2] - The issuance of convertible bonds is expected to enhance the company's capital strength at a lower cost, optimizing the capital structure and supporting business development [7] - The report maintains previous profit forecasts, expecting net profit attributable to shareholders to be CNY 135.2 billion, CNY 154.4 billion, and CNY 177.0 billion for 2025, 2026, and 2027 respectively [7] Financial Forecasts - Total revenue (CNY million) is projected to be 913,789 in 2023, 1,028,925 in 2024, and expected to grow to 1,215,854 by 2027, with a CAGR of 6.9% from 2024 to 2027 [7][9] - Net profit attributable to shareholders (CNY million) is forecasted to decline by 22.8% in 2023, followed by a significant recovery of 47.8% in 2024, and steady growth of 6.8%, 14.2%, and 14.6% in the subsequent years [7][9] - The estimated PEV for 2025 is 0.65x, indicating that the current market valuation remains low [7][9] Market Data - The closing price of Ping An is CNY 53.85, with a market capitalization of CNY 980.62 billion [5] - The price-to-book ratio (P/B) is 1.04, and the price-to-earnings ratio (P/E) is projected to be 7.75 for 2024 [5][9] Capital Adequacy - As of Q1 2025, the core solvency ratio for Ping An Life is 163.7%, and the comprehensive solvency ratio is 227.9%, reflecting a significant increase from the beginning of the year [7]

Investment Rating - The investment rating for Ping An Insurance (601318) is "Buy" (maintained) [1][2] Core Views - On June 4, Ping An announced plans to issue HKD 11.765 billion in H-share convertible bonds to support capital needs and strategic development in healthcare and elderly care [2] - The issuance of convertible bonds is expected to enhance the group's capital strength at a lower cost, optimizing the capital structure and supporting business development [7] - The report maintains previous profit forecasts, expecting net profit attributable to shareholders to be CNY 135.2 billion, CNY 154.4 billion, and CNY 177.0 billion for 2025, 2026, and 2027 respectively [7] Financial Forecasts - Total revenue forecast for 2023 is CNY 913.789 billion, with a year-on-year growth of 3.8% [1] - Net profit attributable to shareholders for 2023 is projected at CNY 85.665 billion, reflecting a year-on-year decline of 22.8% [1] - Earnings per share (EPS) for 2023 is estimated at CNY 4.70, with a projected increase to CNY 6.95 in 2024 [9] - The price-to-earnings (P/E) ratio for 2025 is expected to be 7.25, indicating a relatively low valuation [9] Market Data - The closing price of Ping An is CNY 53.85, with a market capitalization of CNY 980.621 billion [5] - The price-to-book (P/B) ratio is currently at 1.04, suggesting the stock is trading at a slight premium to its book value [5] - The one-year price range for the stock is between CNY 40.22 and CNY 62.80 [5] Capital Adequacy - As of Q1 2025, the core solvency ratio for Ping An Life is 163.7%, and the comprehensive solvency ratio is 227.9%, showing significant improvement [7] - The company plans to increase its capital by CNY 20 billion, which is expected to further enhance its capital adequacy [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][7] Core Views - The company announced on June 4 that it plans to issue HKD 11.765 billion in H-share convertible bonds to support its capital needs and strategic development in healthcare and elderly care [2][7] - The issuance of the convertible bonds is expected to enhance the company's capital strength at a lower cost, following a previous USD 3.5 billion convertible bond issuance completed in July 2024 [7] - The company's solvency ratios have improved significantly, with core and comprehensive solvency ratios at 163.7% and 227.9% respectively as of Q1 2025, reflecting a 47 percentage point and 39 percentage point increase from the beginning of the year [7] Financial Forecasts - Total revenue is projected to reach CNY 1,028,925 million in 2024, with a year-on-year growth of 12.6% [7] - The net profit attributable to shareholders is expected to rebound to CNY 126,607 million in 2024, representing a 47.8% increase year-on-year [7] - The estimated earnings per share (EPS) for 2025 is CNY 7.42, with a projected price-to-earnings (P/E) ratio of 7.25 [9] - The company's price-to-embedded value (PEV) is forecasted to be 0.65x in 2025, indicating it is still undervalued [7][9] Market Data - The closing price of the company's stock is CNY 53.85, with a market capitalization of CNY 980,621.13 million [5] - The company has a price-to-book (P/B) ratio of 1.04 and a net asset value per share of CNY 51.60 [5][6] Capital Structure - The convertible bonds will be zero-coupon bonds maturing in 2030, with an initial conversion price of HKD 55.02, representing an 18.45% premium over the closing price on June 3 [7] - The issuance will utilize 28.7% of the general authorization limit approved by the shareholders [7]

6月4日，中国平安公告称，拟发行总额为117.65亿港元的H股可转换债券，该债券将于2030年6月到期， 初始转换价为每股H股55.02 港元（可予调整）。 关键是此次可转换债券是零息，也就是中国平安不用支付一分钱利息。 不过，投资者有权在债券到期时将债券转换为H股，这种特性使得债券持有人在股票价格上涨时可以通 过转换获利。 按55.02港元的初始转换价计算，该价格较中国平安H股于6月3日（即签署认购协议的交易日）在香港联 交所所报收市价每股46.45港元溢价约18.45%；较截至6月3日（包括该日）连续五个交易日于香港联交 所所报平均收市价约每股46.08港元溢价约19.40%。 接受零息债券，只能说投资人是异常看好中国平安未来股价走势。 根据中国平安公告，假设债券按每股H股55.02港元的初始转换价全部转换且不再发行其他股份，则债券 将可转换为约2.14亿股转换股份，约占中国平安现有已发行H股数目的2.87%及现有已发行股本总数的 1.17%，以及约占该公司于债券获全部转换后经发行转换股份扩大后已发行H股数目的2.79%及已发行股 本总数的1.16%。 | | 于本公告日期 | | 假设债券已按初始转换价 ...

Group 1 - The Hong Kong insurance stocks are experiencing volatility and a downward trend, with ZhongAn Online (06060.HK) and China Pacific Insurance (02328.HK) both declining over 2% [1] - China Ping An (02318.HK) and Yunfeng Financial (00376.HK) have also seen declines of more than 1% [1]

证券代码：601318 证券简称：中国平安 公告编号：临 2025-024 中国平安保险（集团）股份有限公司 关于拟根据一般性授权发行 11,765,000,000 港元于 2030 年到期的零息 H 股可转换债券的公告 中国平安保险（集团）股份有限公司（以下简称"本公司"）董事会及全体董事保 证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容的真 实性、准确性和完整性承担法律责任。 重要内容提示： 本公司拟根据一般性授权发行可转换为本公司 H 股股份的债券，不涉及本公 司 A 股发行。 一、本次发行概述 2025 年 6 月 3 日（交易时间后），本公司与经办人签署认购协议。根据认购 协议，本公司已同意向经办人发行或根据经办人指示发行，且经办人已同意认购 并支付，或促使认购人认购并支付债券，但须遵守认购协议中规定的若干条件。 经办人已开展入标定价，关于债券的条款（包括但不限于本金金额和初始转 换价）已在入标定价后确定。 发行人拟发行的债券本金总额为 11,765,000,000 港元，可于条款及条件所载 情形下转换为 H 股。初始转换价为每股 H 股 55.02 港元（可予调整）。 假设债券 ...

Core Viewpoint - China Ping An has signed a subscription agreement to issue HKD 11.765 billion zero-coupon convertible bonds due in 2030, which can be converted into H-shares at an initial conversion price of HKD 55.02 per share [1][2] Group 1 - The total principal amount of the bonds is HKD 11.765 billion, which can be converted into approximately 214 million shares, representing about 2.87% of the existing H-shares and 1.17% of the total issued share capital as of the announcement date [1] - The initial conversion price of HKD 55.02 per share is subject to adjustments [1] - After full conversion of the bonds, the new shares will represent approximately 2.79% of the enlarged issued H-shares and 1.16% of the total issued share capital, assuming no other changes in share capital [1] Group 2 - The net proceeds from the bond issuance will be used to meet the group's future financial business development needs, support the new strategic developments in healthcare and elderly care, and for general corporate purposes [2] - The board believes that the bond issuance will help optimize the group's capital structure and diversify financing channels, providing support for the group's ongoing business development [2]