Jinwu Financial News | According to BOC International Development Research Report, China Ping An (02318)'s profit performance for the first quarter of 2024 was stable on a high basis, and the three core businesses remained stable overall. Operating profit returned to parent fell 3% year on year. The decline was mainly due to the technology, financial insurance and asset management sectors, while life insurance, health insurance, and banks increased slightly year over year. Life and health insurance+financial insurance+banking combined increased 0.3% year over year.
According to the bank, the value of the new business has increased significantly, mainly due to an increase in the value ratio. The bank expects that there is still room for optimization of the product structure throughout the year, and the value rate of the new business is expected to continue to increase compared to the first quarter of 2024. The comprehensive cost ratio of financial insurance increased year-on-year. The return on investment declined slightly year over year.
The bank continued that guaranteed products account for a relatively high share of the stock business, and the traditional, dividend, and universal structures are relatively balanced; the proportion of increased lifetime life expectancy is very small, leveling the yield below 2.5%. The bank maintained its profit forecast and raised its new business value forecast. The bank expects that as the base for the next quarter decreases, the company's profit improvement trend is clear. The three core businesses are expected to contribute to stable profits, and the profit performance of the asset management sector is expected to improve significantly. Maintain the purchase rating and target price of HK$51.