Takeaways from 2021 interim results
Table 1: Ping An Insurance various business segments’ operating profits
| Business segments | 1H20 | 1H21 | Change |
| Life & Health Insurance | 51,127 | 49,495 | -3.2% |
| Property & Casualty Insurance | 8,234 | 10,741 | 30.4% |
| Banking | 7,927 | 10,191 | 28.6% |
| Asset Management | 5,831 | 8,008 | 37.3% |
| Technology | 3,438 | 6,236 | 81.4% |
| Total operating profit* | 74,310 | 81,836 | 10.1% |
Source:
Ping An Insurance's 2021 interim report, iFAST compilations *After taking into account other businesses and elimination |
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Chart 1: An increasing number of customers holding multiple contracts with different subsidiaries
Concerns over Ping An’s real estate exposure may be overblown
Table 2: Ping An’s investments in other real estate developers
| Company name | Ping An investments | Colour code | Debt growth allowed |
| Jinmao | 14.1% | Green | 15% |
| Country Garden | 8.0% | Yellow | 10% |
| CIFI | 6.5% | Yellow | 10% |
Source: iFAST compilations, respective companies' 2021 interim
report Data as of August 2021 |
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China’s insurance market still expected to see strong growth in the longer term
Chart 2: Strong growth in China’s insurance premium in the next two years
Chart 3: Low insurance density and penetration rate in China
Attractive upside potential due to the market sell-off
Table 3: Ping An’s SOTP valuation
| Business segment | Shareholding | Valuation | Valuation methodology | Multiple | Weighted valuation |
| Life & Health | 99.5% | 379,850 | P/B | 3.0 | 1,139,550 |
| P&C | 99.5% | 140,057 | P/B | 2.0 | 276,778 |
| Banking | 58.0% | 336,692 | Market cap | 1.0 | 195,147 |
| Fintech & Health-tech | Disclosed | 87,406 | Disclosed Valuation | - | 87,406 |
| Securities | 97% | 35,312 | Peers P/B | 2.0 | 70,624 |
| Trust | 100% | 1,250 | Peers P/E | 15.0 | 18,750 |
| Others | 100% | 43,151 | Book value | 1.0 | 43,151 |
| Total | 1,831,406 | ||||
| # of shares | 17,646 | ||||
| End 2023 target price (RMB) | 103.8 | ||||
| End 2023 target price (HKD) | 120 | ||||
| Current share price (HKD) | 53.3 | ||||
| Upside potential | 124.9% | ||||
Source:
Bloomberg Finance L.P., Ping An annual reports, iFAST estimations Data as of 30 September 2021 |
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Chart 4: Ping An Insurance’s share price and earnings
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