Guoxin Securities·2026-01-08 06:42Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1] Core Views - The recent strength of the insurance sector, represented by China Ping An, is driven by a combination of policy support, macroeconomic changes, fundamentals, and market liquidity [3][24] - The valuation of China Ping An is expected to be re-evaluated in 2026, driven by both internal adjustments in public fund allocations and external capital inflows [4][11] - The company's strategic focus on "comprehensive finance + ecosystem" aligns well with the aging economy and domestic demand themes, particularly through its investments in health and wellness and AI technologies [5][15][22] Summary by Relevant Sections Investment Rating - The report maintains an "Outperform the Market" rating for China Ping An, with expected earnings per share (EPS) of 7.72, 8.57, and 9.26 CNY for 2025 to 2027, respectively [3][26] Market Dynamics - Since December 2025, the A-share insurance sector has seen a maximum monthly increase of 20%, with China Ping An reaching a nearly four-year high [2] - The appreciation of the RMB has attracted foreign capital to reallocate towards core Chinese assets, with China Ping An being a key choice due to its liquidity and low valuation [3][11] Internal and External Factors - Internally, the high-quality development of public funds is expected to shift from growth to value styles by 2026, favoring low-valuation, high-dividend stocks like China Ping An [3][4] - Externally, the strategic allocation of overseas capital is anticipated to increase, focusing on stable, high-dividend companies like China Ping An [4][11] Strategic Initiatives - China Ping An's investments in health and wellness, along with AI, are expected to create a second growth curve, enhancing service experience and operational efficiency [5][15][22] - The company is building a "finance + healthcare" service system that meets the growing demand for high-quality health and elderly care services, aligning with national policies to boost domestic consumption [15][22] Financial Projections - The report projects an average annual growth rate of 11% for the company's enterprise value (EV) over the next three years, with a reasonable P/EV valuation range of 1.02 to 1.13 [3][26] - The current P/EV ratios for 2025, 2026, and 2027 are expected to be 0.71, 0.65, and 0.59, respectively, indicating significant potential for valuation recovery [3][26]