Executive Summary
Ping An Insurance (Group) Company of China, Ltd.
Rewards
Risk Analysis
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
| 2318 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.3% | 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 Year | 87.5%74.1% | 15.9%9.8% | -3.2%-13.0% |
| 5 Year | 79.0%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
3 days ago | Simply Wall St
Despite Its High P/E Ratio, Is Ping An Insurance (Group) Company of China, Ltd. (HKG:2318) Still Undervalued?2 weeks ago | Simply Wall St
Could Ping An Insurance (Group) Company of China, Ltd.'s (HKG:2318) Investor Composition Influence The Stock Price?1 month ago | Simply Wall St
Should We Be Delighted With Ping An Insurance (Group) Company of China, Ltd.'s (HKG:2318) ROE Of 19%?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | CN¥5.10m | 0.010% CN¥143.5m | |
| Executive VP | 10.75yrs | CN¥6.41m | 0.0036% CN¥50.3m | |
| Senior VP | 5.67yrs | CN¥4.23m | 0.0022% CN¥30.2m | |
| Executive Officer | no data | CN¥4.29m | 0.0057% CN¥78.4m | |
| Co-CEO, Executive VP & COO | 1.25yrs | no data | 0.00091% CN¥12.6m | |
| Co-CEO & President | 1.25yrs | no data | 0.00088% CN¥12.2m | |
| Chief Investment Officer | 7.58yrs | no data | no data | |
| Chief Scientist | no data | no data | no data | |
| Chief Insurance Business Officer & Chief Information Officer | no data | no data | no data | |
| Chief Strategist & Head of Investor Relations | no data | no data | no data |
5.0yrs
Average Tenure
50yo
Average Age
Experienced Management: 2318's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | CN¥5.10m | 0.010% CN¥143.5m | |
| Executive VP | 10.75yrs | CN¥6.41m | 0.0036% CN¥50.3m | |
| Senior VP | 5.67yrs | CN¥4.23m | 0.0022% CN¥30.2m | |
| Non-Executive Director | 6.75yrs | CN¥535.00k | no data | |
| Non-Executive Director | 6.75yrs | CN¥538.00k | no data | |
| Independent Non-Executive Director | 4.75yrs | CN¥538.00k | no data | |
| Independent Non-Executive Director | 13.83yrs | CN¥253.00k | no data | |
| Chairman of Supervisory Committee | 10.75yrs | CN¥258.00k | no data | |
| Independent Non-Executive Director | 2.58yrs | CN¥542.00k | no data | |
| Non-Executive Director | 4.17yrs | CN¥518.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PIAI.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Jun 2004 |
| 2318 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2004 |
| PZX | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Jun 2004 |
| 2318 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2004 |
| 2318 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jun 2004 |
| PNGA.Y | OTCPK (Pink Sheets LLC) | SPONS ADR EA REP 2'H' SHS | US | USD | Mar 2005 | |
| PNGAY N | BMV (Bolsa Mexicana de Valores) | SPONS ADR EA REP 2'H' SHS | MX | MXN | Mar 2005 | |
| 601318 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Mar 2007 | |
| 601318 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 12:31 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.