SEHK:2318

Stock Analysis Report

Ping An Insurance (Group) Company of China

Executive Summary

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


Snowflake Analysis

Good value with proven track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.3%

2318

5.4%

HK Insurance

4.0%

HK Market


1 Year Return

-16.2%

2318

-18.9%

HK Insurance

-20.3%

HK Market

Return vs Industry: 2318 exceeded the Hong Kong Insurance industry which returned -18.9% over the past year.

Return vs Market: 2318 exceeded the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

2318IndustryMarket
7 Day6.3%5.4%4.0%
30 Day-13.0%-13.2%-9.6%
90 Day-18.1%-21.5%-16.0%
1 Year-14.1%-16.2%-17.3%-18.9%-17.4%-20.3%
3 Year87.5%74.1%15.9%9.8%-3.2%-13.0%
5 Year79.0%61.9%-2.4%-10.4%-7.4%-22.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2318 (HK$75.4) is trading below our estimate of fair value (HK$153.73)

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


Price To Earnings Ratio

PE vs Industry: 2318 is poor value based on its PE Ratio (8.2x) compared to the Insurance industry average (7.1x).

PE vs Market: 2318 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 2318 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 2318 is overvalued based on its PB Ratio (1.9x) compared to the HK Insurance industry average (0.9x).


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 16 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2318's forecast earnings growth (9.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 2318's earnings (9.1% per year) are forecast to grow slower than the Hong Kong market (12.8% 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 (-9.1% per year).

High Growth Revenue: 2318's revenue is forecast to decline over the next 3 years (-9.1% 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 (20.8%)


Next Steps

Past Performance

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

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2318 has high quality earnings.

Growing Profit Margin: 2318's current net profit margins (12.1%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: 2318's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: 2318's earnings growth over the past year (39.1%) exceeds its 5-year average (26% per year).

Earnings vs Industry: 2318 earnings growth over the past year (39.1%) underperformed the Insurance industry 48%.


Return on Equity

High ROE: 2318's Return on Equity (19.3%) is considered low.


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 1.4x 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?

2.97%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2318's dividend (2.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 2318's dividend (2.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


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 (24.4%), 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 (30.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Peter Ma (63yo)

no data

Tenure

CN¥5,101,000

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 ($USD718.88K) is below average for companies of similar size in the Hong Kong market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mingzhe Ma
Founderno dataCN¥5.10m0.010% CN¥143.5m
Bo Yao
Executive VP10.75yrsCN¥6.41m0.0036% CN¥50.3m
Fangfang Cai
Senior VP5.67yrsCN¥4.23m0.0022% CN¥30.2m
Huichuan Ren
Executive Officerno dataCN¥4.29m0.0057% CN¥78.4m
Sin Yin Tan
Co-CEO, Executive VP & COO1.25yrsno data0.00091% CN¥12.6m
Yonglin Xie
Co-CEO & President1.25yrsno data0.00088% CN¥12.2m
Tak Yin Chan
Chief Investment Officer7.58yrsno datano data
Jing Xiao
Chief Scientistno datano datano data
Min Lu
Chief Insurance Business Officer & Chief Information Officerno datano datano data
James Garner
Chief Strategist & Head of Investor Relationsno datano datano data

5.0yrs

Average Tenure

50yo

Average Age

Experienced Management: 2318's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mingzhe Ma
Founderno dataCN¥5.10m0.010% CN¥143.5m
Bo Yao
Executive VP10.75yrsCN¥6.41m0.0036% CN¥50.3m
Fangfang Cai
Senior VP5.67yrsCN¥4.23m0.0022% CN¥30.2m
Soopakij Chearavanont
Non-Executive Director6.75yrsCN¥535.00kno data
Xiaoping Yang
Non-Executive Director6.75yrsCN¥538.00kno data
Ming Ge
Independent Non-Executive Director4.75yrsCN¥538.00kno data
Sing Yip Ng
Independent Non-Executive Director13.83yrsCN¥253.00kno data
Liji Gu
Chairman of Supervisory Committee10.75yrsCN¥258.00kno data
Hui Ouyang
Independent Non-Executive Director2.58yrsCN¥542.00kno data
Chong Liu
Non-Executive Director4.17yrsCN¥518.00kno data

6.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 2318's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.385t
  • Shares outstanding: 18.21b
  • 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 Health Insurance segment offers term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance to individual and corporate customers. Its Property and Casualty Insurance segment provides auto, non-auto, and accident and health insurance to individual and corporate customers. The company’s Banking segment undertakes loan and intermediary businesses with corporate and retail customers; and provides wealth management and credit card services to individual customers. Its Trust segment offers trust services; and undertakes investing activities. The company’s Securities segment provides brokerage, trading, investment banking, and asset management services. Its Other Asset Management segment provides investment management, finance lease, and other asset management services. The company’s Technology segment offers various financial and daily-life services through Internet platforms, such as financial transaction information service platform, and health care service platform. It also provides annuity insurance, investment management, IT and business process outsourcing, real estate investment, futures brokerage, consulting, project investment, financial advisory, currency brokerage, property agency, fund raising and distribution, real estate development, and insurance sale agency services. In addition, the company provides factoring, equity investment, financing guarantee, logistics, management consulting, e-commerce, credit information, and private equity financing services. Further, it operates expressway, as well as produces and sells consumer chemicals. The company was founded in 1988 and is based in Shenzhen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 12:31
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.