Guotai Junan Securities·2024-07-16 01:01Investment Rating - The investment rating for Ping An Insurance (601318) is "Buy" [4] - The target price is set at 58.98 CNY per share, with the current price at 42.53 CNY [4] Core Insights - The company proposes to issue US dollar convertible bonds primarily to supplement its capital and support its strategic initiatives, particularly in enhancing its "comprehensive finance + healthcare and elderly care" service system [5][8] - The issuance of convertible bonds is expected to alleviate capital pressure and facilitate the sustainable growth of core indicators [8] - The company maintains its "Buy" rating and target price, projecting earnings per share (EPS) of 6.17, 7.57, and 8.77 CNY for 2024, 2025, and 2026 respectively [8][9] Financial Summary - Total revenue for 2022 was 880,355 million CNY, with a projected increase to 941,703 million CNY in 2024 [9] - Net profit attributable to shareholders for 2022 was 111,008 million CNY, expected to rise to 112,437 million CNY in 2024 [9] - The company's return on equity (ROE) is projected to improve from 10% in 2023 to 15% by 2026 [9] Capital Structure - As of the end of Q1 2024, the core solvency ratio for life insurance was 118.8%, and for property insurance, it was 173.8%, indicating a need for capital replenishment [8] - The total market capitalization is reported at 774,481 million CNY, with a price-to-book ratio of 0.9 [5][6]