PING AN OF CHINA(601318)2024-09-30 13:00Investment Rating - The report indicates a positive investment outlook for Ping An, highlighting a significant recovery in its market valuation and stock price, which has reached a three-year high [1][4]. Core Insights - The report emphasizes that the factors previously suppressing Ping An's valuation are now turning positive, with new business value returning to double-digit growth, which is expected to support future earnings and profit releases [21]. - Ping An is positioned as a major beneficiary of recent financial policies aimed at supporting high-quality economic development, particularly in the insurance sector [4][15]. - The company's internal value, measured by embedded value, has shown substantial growth from 264.2 billion yuan in 2014 to 930.2 billion yuan in 2023, indicating a strong recovery from a "broken net" state [7][9]. Summary by Sections Business Performance - Ping An's new business value (NBV) reached 22.3 billion yuan in the first half of 2024, with a year-on-year growth rate of 11%, marking six consecutive quarters of positive growth [9][10]. - The company's agent channel saw a 10.8% increase in new business value, with the average income of agents rising from 6,309 yuan in 2019 to 12,000 yuan in 2023 [9][10]. Regulatory Environment - Recent regulatory changes, including the implementation of the "Solvency II Phase II" rules, have positioned Ping An as a significant beneficiary due to its accumulation of long-term protection-type policies [11][12]. - The new "National Ten Articles" for the insurance industry aims to enhance regulatory oversight and promote high-quality development, benefiting leading firms like Ping An [15]. Strategic Direction - Ping An's strategy focuses on a "comprehensive finance + healthcare" model, integrating various financial services and healthcare offerings to meet consumer needs [19][20]. - The company has established a robust ecosystem that leverages technology and AI to enhance service delivery across its financial and healthcare services [19]. Customer Engagement - As of mid-2024, Ping An has 236 million individual customers, with a significant portion engaging with multiple services, indicating strong customer retention and cross-selling potential [19]. - The company's commitment to customer-centric services is reflected in its "Three Savings" initiative, which aims to provide value through convenience, efficiency, and cost savings [17][18].