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2318

Ping An Insurance (Group) Company of ChinaSEHK:2318 Stock Report

Last Price

HK$65.95

Market Cap

HK$1.2t

7D

7.5%

1Y

-32.4%

Updated

22 Jan, 2022

Data

Company Financials +
2318 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends4/6

2318 Stock Overview

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

Ping An Insurance (Group) Company of China Competitors

AIA Group

SEHK:1299

HK$1.1t

China Life Insurance

SEHK:2628

HK$860.2b

China Taiping Insurance Holdings

SEHK:966

HK$42.3b

China Merchants Bank

SHSE:600036

CN¥1.3t

Price History & Performance

Summary of all time highs, changes and price drops for Ping An Insurance (Group) Company of China
Historical stock prices
Current Share PriceHK$65.95
52 Week HighHK$99.80
52 Week LowHK$48.80
Beta0.99
1 Month Change17.35%
3 Month Change5.27%
1 Year Change-32.36%
3 Year Change-10.15%
5 Year Change64.46%
Change since IPO1,168.27%

Recent News & Updates

Sep 26
Ping An Insurance (Group) Company of China (HKG:2318) Is Increasing Its Dividend To HK$1.06

Ping An Insurance (Group) Company of China (HKG:2318) Is Increasing Its Dividend To HK$1.06

Ping An Insurance (Group) Company of China, Ltd. ( HKG:2318 ) will increase its dividend on the 25th of October to...

Sep 12
Ping An Insurance (Group) Company of China's (HKG:2318) Shareholders Will Receive A Bigger Dividend Than Last Year

Ping An Insurance (Group) Company of China's (HKG:2318) Shareholders Will Receive A Bigger Dividend Than Last Year

Ping An Insurance (Group) Company of China, Ltd. ( HKG:2318 ) will increase its dividend on the 25th of October to...

Shareholder Returns

2318HK InsuranceHK Market
7D7.5%5.3%1.9%
1Y-32.4%-20.4%-13.4%

Return vs Industry: 2318 underperformed the Hong Kong Insurance industry which returned -20.4% over the past year.

Return vs Market: 2318 underperformed the Hong Kong Market which returned -13.4% over the past year.

Price Volatility

Is 2318's price volatile compared to industry and market?
2318 volatility
2318 Average Weekly Movement4.3%
Insurance Industry Average Movement3.6%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.1%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 2318 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2318's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1988362,035Jason Yaohttps://www.pingan.com

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

Ping An Insurance (Group) Company of China Fundamentals Summary

How do Ping An Insurance (Group) Company of China's earnings and revenue compare to its market cap?
2318 fundamental statistics
Market CapCN¥972.05b
Earnings (TTM)CN¥121.70b
Revenue (TTM)CN¥1.33t

8.0x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2318 income statement (TTM)
RevenueCN¥1.33t
Cost of RevenueCN¥855.33b
Gross ProfitCN¥479.20b
ExpensesCN¥357.51b
EarningsCN¥121.70b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Mar 17, 2022

Earnings per share (EPS)6.71
Gross Margin35.91%
Net Profit Margin9.12%
Debt/Equity Ratio200.1%

How did 2318 perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

8%

Payout Ratio

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$65.95) is trading below our estimate of fair value (HK$213.07)

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 (8x) compared to the Hong Kong Insurance industry average (5.2x).

PE vs Market: 2318 is good value based on its PE Ratio (8x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2318 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 2318 is overvalued based on its PB Ratio (1.2x) compared to the HK Insurance industry average (0.5x).


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 19 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2318's forecast earnings growth (16.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 2318's earnings (16.4% per year) are forecast to grow slower than the Hong Kong market (16.5% per year).

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

Revenue vs Market: 2318's revenue (2.5% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 2318's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2318's Return on Equity is forecast to be low in 3 years time (17.2%).


Past Performance

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

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2318 has a large one-off loss of CN¥80.5B impacting its September 30 2021 financial results.

Growing Profit Margin: 2318's current net profit margins (9.1%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: 2318's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: 2318's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2318 had negative earnings growth (-1%) over the past year, making it difficult to compare to the Insurance industry average (28.4%).


Return on Equity

High ROE: 2318's Return on Equity (13.5%) is considered low.


Financial Health

How is Ping An Insurance (Group) Company of China's financial position?


Financial Position Analysis

Short Term Liabilities: 2318's short term assets (CN¥2,779.4B) exceed its short term liabilities (CN¥282.3B).

Long Term Liabilities: 2318's short term assets (CN¥2,779.4B) do not cover its long term liabilities (CN¥8,747.8B).


Debt to Equity History and Analysis

Debt Level: 2318's net debt to equity ratio (3.2%) is considered satisfactory.

Reducing Debt: 2318's debt to equity ratio has increased from 181.5% to 200.1% over the past 5 years.

Debt Coverage: 2318's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: 2318's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Dividend

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

4.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2318's dividend (4.25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 2318's dividend (4.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.95%).


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 (8%), 2318's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2318's dividends in 3 years are forecast to be well covered by earnings (27.9% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Jason Yao (50 yo)

11.75yrs

Tenure

CN¥9,132,000

Compensation

Mr. Bo Yao, also known as Jason, has been the Chief Actuary of Ping An Insurance (Group) Company of China, Ltd. since October 2012 and also serves as its Co-Chief Executive Officer since July 01, 2020. Mr....


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.44M) is about average for companies of similar size in the Hong Kong market ($USD1.18M).

Compensation vs Earnings: Jason's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 2318's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: 2318's board of directors are considered experienced (3.5 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 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
  • Implied Market Cap: HK$1.194t
  • Shares outstanding: 18.13b
  • Website: https://www.pingan.com

Number of Employees


Location

  • Ping An Insurance (Group) Company of China, Ltd.
  • Ping An Finance Center
  • 47th, 48th
  • Shenzhen
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 10:03
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.