Soochow Securities·2025-06-04 07:45Investment 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]