SEHK:2318

Stock Analysis Report

Ping An Insurance (Group) Company of China

Executive Summary

Ping An Insurance (Group) Company of China, Ltd.

Rewards

Trading at 42.8% below its fair value

Earnings are forecast to grow 8.83% per year

Earnings grew by 54.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Ping An Insurance (Group) Company of China's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2318 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.06%

2318

0.8%

HK Insurance

0.9%

HK Market


1 Year Return

20.8%

2318

17.4%

HK Insurance

-1.5%

HK Market

Return vs Industry: 2318 exceeded the Hong Kong Insurance industry which returned 17.4% over the past year.

Return vs Market: 2318 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

2318IndustryMarket
7 Day-0.06%0.8%0.9%
30 Day-4.9%-5.3%-3.7%
90 Day-2.8%-1.0%-0.1%
1 Year23.8%20.8%19.7%17.4%2.0%-1.5%
3 Year130.8%114.4%51.3%43.1%17.3%5.4%
5 Year173.1%146.9%51.3%38.8%17.1%-2.2%

Price Volatility Vs. Market

How volatile is Ping An Insurance (Group) Company of China's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ping An Insurance (Group) Company of China undervalued compared to its fair value and its price relative to the market?

42.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2318 (HK$89.5) is trading below our estimate of fair value (HK$156.38)

Significantly Below Fair Value: 2318 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2318 is good value based on its PE Ratio (9.1x) compared to the Insurance industry average (9.9x).

PE vs Market: 2318 is good value based on its PE Ratio (9.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2318 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2318 is overvalued based on its PB Ratio (2.3x) compared to the HK Insurance industry average (1x).


Next Steps

Future Growth

How is Ping An Insurance (Group) Company of China forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2318's forecast earnings growth (8.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 2318's earnings (8.8% per year) are forecast to grow slower than the Hong Kong market (11.9% per year).

High Growth Earnings: 2318's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2318's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: 2318's revenue is forecast to decline over the next 3 years (-2.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2318's Return on Equity is forecast to be high in 3 years time (23.4%)


Next Steps

Past Performance

How has Ping An Insurance (Group) Company of China performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2318 has high quality earnings.

Growing Profit Margin: 2318's current net profit margins (13.6%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 2318's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: 2318's earnings growth over the past year (54.2%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: 2318 earnings growth over the past year (54.2%) exceeded the Insurance industry 4.6%.


Return on Equity

High ROE: Whilst 2318's Return on Equity (21.73%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ping An Insurance (Group) Company of China's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 2318 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2318's debt is covered by short term assets (assets are 1.7x debt).


Financial Institutions Analysis

Asset Level: 2318's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2318 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2318 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2318 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2318 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2318 has an appropriate level of bad loans.


Next Steps

Dividend

What is Ping An Insurance (Group) Company of China's current dividend yield, its reliability and sustainability?

2.30%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.2%markettop25%6.3%industryaverage1.8%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: 2318's dividend (2.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 2318's dividend (2.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.31%).


Stability and Growth of Payments

Stable Dividend: 2318's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2318's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.9%), 2318's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2318's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

What is the CEO of Ping An Insurance (Group) Company of China's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Peter Ma (63yo)

0yrs

Tenure

CN¥5,190,000

Compensation

Mr. Mingzhe Ma, also known as Peter, founded Ping An Insurance (Group) Co. of China Ltd. in March 1988 and has been its Chairman and Chief Executive Officer since April 1994 and April 2001 respectively. Mr ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD736.16K) is about average for companies of similar size in the Hong Kong market ($USD787.36K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 2318's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

56yo

Average Age

Experienced Board: 2318's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥373,176,99503 Dec 19
BlackRock, Inc.
EntityCompany
Shares4,098,000
Max PriceCN¥91.06
SellCN¥1,376,200,23530 Oct 19
Charoen Pokphand Group Co., Ltd.
EntityCompany
Shares14,547,571
Max PriceCN¥94.60
SellCN¥4,692,49427 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares51,500
Max PriceCN¥91.12
SellCN¥744,760,18727 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares8,173,723
Max PriceCN¥91.12
BuyCN¥1,638,72827 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares17,985
Max PriceCN¥91.12
BuyCN¥21,86827 Sep 19
Sacam Mutualisation
EntityCompany
Shares240
Max PriceCN¥91.12
SellCN¥308,42927 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,385
Max PriceCN¥91.12
BuyCN¥10,797,29327 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares118,500
Max PriceCN¥91.12
BuyCN¥593,714,61024 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares6,415,665
Max PriceCN¥92.54
SellCN¥1,135,546,83418 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares11,966,313
Max PriceCN¥94.90
BuyCN¥367,946,53713 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares3,984,119
Max PriceCN¥92.35
SellCN¥2,577,158,26110 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares27,627,014
Max PriceCN¥93.28
SellCN¥13,708,78106 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares151,500
Max PriceCN¥90.49
SellCN¥2,945,392,45106 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares32,550,448
Max PriceCN¥90.49
BuyCN¥74,741,44906 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares825,991
Max PriceCN¥90.49
BuyCN¥3,800,45406 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares42,000
Max PriceCN¥90.49
BuyCN¥60,270,31506 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares666,066
Max PriceCN¥90.49
SellCN¥101,23005 Sep 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares1,120
Max PriceCN¥90.38
SellCN¥349,062,65905 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares3,861,996
Max PriceCN¥90.38
BuyCN¥95,083,97205 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares1,052,000
Max PriceCN¥90.38
SellCN¥20,743,12905 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares229,500
Max PriceCN¥90.38
BuyCN¥981,652,44303 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares10,975,726
Max PriceCN¥89.44
SellCN¥5,161,494,18702 Sep 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares57,476,317
Max PriceCN¥89.80
SellCN¥3,659,575,09509 Aug 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares41,930,003
Max PriceCN¥87.28
SellCN¥1,530,126,02527 Jun 19
Charoen Pokphand Group Co., Ltd.
EntityCompany
Shares16,814,571
Max PriceCN¥91.00
BuyCN¥48,998,02321 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares557,855
Max PriceCN¥87.83
SellCN¥682,044,32218 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares7,813,930
Max PriceCN¥87.29
SellCN¥23,933,43214 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares269,500
Max PriceCN¥88.81
SellCN¥7,315,709,17914 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares82,377,805
Max PriceCN¥88.81
BuyCN¥1,268,799,96714 Jun 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares14,287,194
Max PriceCN¥88.81
BuyCN¥14,608,71814 Jun 19
Highbridge Capital Management, LLC
EntityCompany
Shares164,500
Max PriceCN¥88.81
BuyCN¥7,890,670,06114 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares88,852,094
Max PriceCN¥88.81
SellCN¥1,143,905,88813 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares13,115,239
Max PriceCN¥87.22
BuyCN¥255,52111 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,000
Max PriceCN¥85.17
BuyCN¥1,119,948,80511 Jun 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares13,148,998
Max PriceCN¥85.17
SellCN¥38,716,13111 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares454,555
Max PriceCN¥85.17
SellCN¥7,197,17811 Jun 19
Highbridge Capital Management, LLC
EntityCompany
Shares84,500
Max PriceCN¥85.17
SellCN¥29,810,79511 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares350,000
Max PriceCN¥85.17
BuyCN¥4,923,55111 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares57,806
Max PriceCN¥85.17
SellCN¥200,354,13410 Jun 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares2,350,038
Max PriceCN¥85.26
BuyCN¥35,983,61710 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares422,067
Max PriceCN¥85.26
BuyCN¥1,406,71910 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares16,500
Max PriceCN¥85.26
SellCN¥8,731,54810 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares102,416
Max PriceCN¥85.26
SellCN¥19,097,27710 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares224,000
Max PriceCN¥85.26
BuyCN¥431,911,32607 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares5,071,852
Max PriceCN¥85.16
SellCN¥385,434,54506 Jun 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares4,470,491
Max PriceCN¥86.22
SellCN¥5,112,407,71803 May 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares54,332,811
Max PriceCN¥94.09
BuyCN¥5,890,404,46230 Apr 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares63,514,087
Max PriceCN¥92.74
SellCN¥4,912,602,86204 Apr 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares54,769,842
Max PriceCN¥89.70
SellCN¥4,646,568,93504 Apr 19
UBS Asset Management
EntityCompany
Shares56,041,704
Max PriceCN¥82.91
SellCN¥1,280,317,62205 Mar 19
Charoen Pokphand Group Co., Ltd.
EntityCompany
Shares16,003,971
Max PriceCN¥80.00
BuyCN¥2,055,446,92628 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares24,788,671
Max PriceCN¥82.92
SellCN¥1,983,874,02113 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares26,122,922
Max PriceCN¥75.94
SellCN¥303,160,94513 Feb 19
UBS Asset Management
EntityCompany
Shares3,930,020
Max PriceCN¥77.14
SellCN¥1,986,038,41913 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares26,151,422
Max PriceCN¥75.94
BuyCN¥584,685,65008 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares7,611,578
Max PriceCN¥76.82
BuyCN¥8,371,87504 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares110,576
Max PriceCN¥75.71
SellCN¥3,596,29604 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares47,500
Max PriceCN¥75.71
SellCN¥182,973,42404 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares2,416,719
Max PriceCN¥75.71
BuyCN¥245,76004 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,246
Max PriceCN¥75.71
SellCN¥58,841,46504 Feb 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares777,180
Max PriceCN¥75.71
BuyCN¥291,757,52404 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares3,967,018
Max PriceCN¥73.55
SellCN¥1,067,095,24522 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares14,898,591
Max PriceCN¥71.62
BuyCN¥1,141,990,84618 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares16,212,019
Max PriceCN¥70.44
SellCN¥281,642,25418 Jan 19
UBS Asset Management
EntityCompany
Shares4,043,000
Max PriceCN¥69.66
SellCN¥1,455,414,59411 Jan 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares21,818,019
Max PriceCN¥66.71
BuyCN¥1,041,22914 Dec 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares14,000
Max PriceCN¥74.37
SellCN¥1,056,99614 Dec 18
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares14,212
Max PriceCN¥74.37
SellCN¥1,375,91014 Dec 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares18,500
Max PriceCN¥74.37
SellCN¥449,251,85314 Dec 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares6,040,483
Max PriceCN¥74.37
BuyCN¥999,740,81414 Dec 18
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares13,611,657
Max PriceCN¥73.45

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Timothy Chan (58yo)

    Chief Investment Officer

    • Tenure: 7.3yrs
  • Huichuan Ren (49yo)

    President & Executive Director

    • Tenure: 0.2yrs
    • Compensation: CN¥4.31m
  • Peter Ma (63yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CN¥5.19m
  • Yuansiong Lee (53yo)

    Co-CEO, Executive VP

    • Tenure: 6.5yrs
    • Compensation: CN¥8.40m
  • Fangfang Cai (45yo)

    Chief Human Resource Officer & Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥4.30m
  • Jason Yao (48yo)

    Executive VP

    • Tenure: 10.5yrs
    • Compensation: CN¥6.45m
  • Jessica Tan (42yo)

    Co-CEO, Executive VP & COO

    • Tenure: 1yrs
  • Yonglin Xie (51yo)

    Co-CEO, Senior VP & Deputy GM

    • Tenure: 1yrs
  • Min Lu (58yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Jing Xiao

    Chief Scientist

    • Tenure: 0yrs

Board Members

  • Soopakij Chearavanont (55yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: CN¥518.00k
  • Huichuan Ren (49yo)

    President & Executive Director

    • Tenure: 0.2yrs
    • Compensation: CN¥4.31m
  • Peter Ma (63yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CN¥5.19m
  • Ming Ge (68yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥526.00k
  • Yuansiong Lee (53yo)

    Co-CEO, Executive VP

    • Tenure: 6.5yrs
    • Compensation: CN¥8.40m
  • Kenneth Ng (68yo)

    Independent Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: CN¥29.00k
  • Liji Gu (71yo)

    Chairman of Supervisory Committee

    • Tenure: 10.5yrs
    • Compensation: CN¥258.00k
  • Hui Ouyang (57yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥526.00k
  • Fangfang Cai (45yo)

    Chief Human Resource Officer & Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥4.30m
  • Jason Yao (48yo)

    Executive VP

    • Tenure: 10.5yrs
    • Compensation: CN¥6.45m

Company Information

Ping An Insurance (Group) Company of China, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ping An Insurance (Group) Company of China, Ltd.
  • Ticker: 2318
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: HK$1.791t
  • Shares outstanding: 19.35b
  • Website: https://www.pingan.com

Number of Employees


Location

  • Ping An Insurance (Group) Company of China, Ltd.
  • Ping An Finance Center
  • 47th, 48th, 108th, 109th, 110th, 111th and 112th Floors
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PIAI.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 2004
2318SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2004
PZXDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2004
2318SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2004
2318SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJun 2004
PNGA.YOTCPK (Pink Sheets LLC)SPONS ADR EA REP 2'H' SHSUSUSDMar 2005
PNGAY NBMV (Bolsa Mexicana de Valores)SPONS ADR EA REP 2'H' SHSMXMXNMar 2005
601318SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYMar 2007
601318XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYMar 2007

Biography

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for insurance, banking, asset management, and fintech and healthtech businesses in China. The company’s Life and He ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:31
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.