pingan , a large player in insurance with very good investment plays

Accuracy score :
97%

Ping An Insurance (Group) Co. of China Ltd H  02318

Summary (from latest annual report 2015 and quarterly report 2016)

  • Total equity  : 54.22 billion USD
  • Market Cap is 96.87 billion USD ( last price of the stock is  41.40 HKD)
  • Ping An Insurance (Group) is engaged in providing financial products and services in the area of insurance, banking, and investment businesses in the People's Republic of China. The Company offers property, casualty, and life insurance
  • Equity of total company increased from 43.31 billion USD in 2014 to 54.22 billion in 2016
  • Company has 33.76 billion USD in cash on account (from latest quarterly report)
  • Free Cash Flow at the end of 2015 was 17.7 billion USD (from latest annual report)
  • In 2016 company has 67.14 billion USD long-term debt, short – term debt is 9.96 billion USD                                                                                                                                                            (In 2014 company had 18.66 billion USD long-term debt, short – term debt was 5.38 billion USD)
  • In 2016 quarterly report - total equity increased to 54.22 billion  USD from 43.31 billion USD in 2014, total debt is 77.1 billion USD in 2016)
  • Company's revenue increased in 2015 to 92.73 billion USD from 69.24 billion in 2014
  • Net income in 2015 was 8.10 billion USD, Net income in 2014 was 5.87 billion USD
  • In 2015 company paid 2.7 billion USD dividend to its shareholders

Ping An Insurance (Group) Co. of China Ltd H  02318

 

Ping An, full name Ping An Insurance (Group) Company of China, Ltd. is a holding company whose subsidiaries mainly deal with insurance, banking, and financial services. The company was founded in 1988 and has its headquarters in Shenzhen and Shanghai. Ping An Insurance Group Co. of China Ltd, the country’s second-largest insurer, is the holding company of Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China, Ltd.

Ping An is dedicated to becoming a world-leading personal financial services provider. Backed by “Integrated Finance + Internet” and “Internet + Integrated Finance” structure, local expertise, best practices in corporate governance with international standards, and single-brand, multi-channel distribution network, company provide insurance, banking, investment and internet finance products and services to over 200 million internet users and 100 million customers. The Company is principally engaged in businesses comprising four reportable operating segments : INSURANCE, BANKING, ASSET MANAGEMENT and INTERNET FINANCE .

  • INSURANCE ( Ping An Life, Ping An Property & Casualty, Ping An Annuity, Ping An Health, Ping An Hong Kong) - Insurance business is one of the core businesses of the Group. After developing for many years, the Group has transitioned from a company with sole property & casualty business to a group which has gradually established a complete business system with four major subsidiaries: Ping An Life, Ping An Property & Casualty, Ping An Annuity and Ping An Health as its core business, providing clients with a full range of insurance products and services
  • BANKING - The Company operates its banking business through Ping An Bank. Banking business is propelled by the four engines, namely “corporate, retail, interbank and investment banking”, highlighting the four characteristics of “specialization, intensification, internet finance and integrated finance”. It provides a full range of integrated finance services which include supply chain finance, investment bank, interbank business, micro loan business, personal consumer finance, credit card, auto financing and private bank
  • ASSET MANAGEMENT - Asset Management business is also one of the core businesses of the Company. Ping An Trust, Ping An Securities, Ping An Asset Management, Ping An Overseas Holdings, Ping An Asset Management (Hong Kong), Ping An-UOB Fund, and Ping An Financial Leasing together form the investment and asset management platform of the Company, providing customers with diversified investment products and services
  • INTERNET FINANCE AND OTHERS (Lufax, Ping An Puhui Finance, Ping An Doctor, PA Haofang, PA Haoche, Ping An Financial Technology, Ping An Pay and Wanlitong, Ping An Technology, Ping An Financial Services) - Ping An continued to focus on the concept of “Technology-driven Finance”. Under the “Internet + Integrated Finance” model, Ping An focused on users’ daily needs in the areas of “health, food, housing, transportation and entertainment”, and sought to widen the range of financial and everyday lifestyle scenarios. It also worked on strengthening internet user operations, enhancing the user experience, and promoting a gradual migration of its internet users and customer base. This enabled Ping An to reach its goal of “One Customer, One Account, Multiple Services and Products” and become its customers’ “wealth manager, health advisor and life companion”
  • Insurance division is worth 51 billion USD, banking division is worth  23 billion USD
  • Asset management, internet finance and other divisions are worth 22 billion USD

 

 

 Ping An standalone subsidiaries and acquisitions :

  • In 2016 Ping An Insurance Group agreed to buy a 48 percent stake in Chinese car website Autohome Inc. from Telstra Corp. for 1.6 billion USD
  • Ping An bought London office property Tower Place for 427 million USD in January 2015 and Lloyds Building in the city’s financial district for 340 million USD in July 2013
  • In 2015 Ping An invested 2 billion USD in Didi Chuxing
  • In last 3 years Ping An spent 700 million USD on small acquisitions and investments in startups (Prenetics, Mogujie, 58 Daojia, Payoneer, Secoo, eToro)
  • In June 2009, Ping An became a strategic investor in Shenzhen Development Bank with 410 million USD investment
  • In July 2006, Ping An Insurance acquired an 89.24% stake in Shenzhen Commercial Bank for 730 million USD
  • Standalone subsidiaries (Shenzhen Wanlitong Internet Information Technology Co, Ansheng Investment Company Limited, Jade Reach Investment Company, Shenyang Shengping Investment Management, Expressway Co, Beijing Jingxinlize Investment, Anbon Delight Company Limited, One Lime Street Company Limited, Talent Bronze Limited, Shanghai Jahwa, Shanghai Zean Investment, Gem Alliance Limited, Harmonious Splendor Limited) are worth 2.7 billion USD

 

Total = 8.9 billion usd

Charoen Pokphand Group of Thailand has got the clearance of USD 9.39 billion purchase of HSBC's stake. On May 10, 2013, in spite of a lack of loan from the China Development Bank,HSBC said "it was selling the 15.6 per cent stake at HK$59 a share" in Ping An to Charoen Pokphand Group

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Free Cash Flow at the end of 2015 was 17.7 billion USD , Price to Book Ratio is 1.8, ROE is around 17 %).