PING AN OF CHINA(601318) 东吴证券·2024-05-19 05:32Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The recent relaxation of real estate policies by the central bank is expected to positively impact the company's valuation and performance, positioning it as a strong option for investing in financial stocks [2][3][25]. - The company is not only a leader in the insurance sector but also a comprehensive financial group that stands to benefit significantly from the current real estate policy changes [2][3][25]. Summary by Sections Earnings Forecast and Valuation - The forecasted net profit attributable to shareholders for 2024-2026 is projected to be 120.38 billion, 154.12 billion, and 162.21 billion yuan, with year-on-year growth rates of 40.5%, 28.0%, and 5.2% respectively [1][3]. - The estimated embedded value per share is expected to rise from 76.34 yuan in 2023 to 83.19 yuan in 2024 [1][3]. Market Data - The closing price of the stock is 45.20 yuan, with a market capitalization of approximately 823.1 billion yuan [4]. - The price-to-book ratio stands at 0.91 [4]. Basic Data - The company's total assets have a debt-to-asset ratio of 89.63% [5]. - The total number of shares is approximately 18.21 billion [5]. Real Estate Exposure Analysis - As of the end of 2023, the company's real estate-related investments in the insurance segment amounted to 204 billion yuan, accounting for 4.3% of total investment assets [2][9]. - The bank's real estate-related credit exposure was approximately 284.2 billion yuan, reflecting a decrease from the previous year [12][13]. Investment Recommendations - The report suggests that the recent real estate policy changes will help narrow the decline in real estate sales and investments, leading to an improvement in the asset quality of insurance companies [2][25]. - The company is viewed as a strong bullish option in the financial sector, with expectations of valuation recovery driven by the recent policy changes [2][25].