Xinhua Insurance (601336) Tracking Briefing： Increasing proportion of health insurance in company merger changes
Xinhua Insurance (601336) Tracking Briefing: Increasing proportion of health insurance in company merger changes
January premiums increase by 6 per year.
9%, achieving steady growth The company achieved a premium income of 19.9 billion in January (China Life Insurance 157.8 billion / Ping An Life Insurance 121.2 billion / CPIC Life Insurance 51.6 billion)深圳spa会所, and an increase of 6.
9% (China Life +24.
4% / Ping An Life Insurance +5.
2% / CPIC Life Insurance +2.
Chairman Wan Feng resigned, executive director acting on January 7, 2019. The company announced that it had received the letter of resignation from Chairman Wan Feng. Wan Feng resigned as chairman and CEO of the company and all other duties due to his age.
The directors of the company recommended Li Zongjian to act on his behalf, valid until the company’s board of directors elected a new chairman.
In the 2019 work conference, the company formulated and will adhere to the established business ideas.
The reserve discount rate releases profits. In 2018, the profit increased greatly. The company issued a performance forecast. It is expected that the company will achieve net profit attributable to shareholders of the parent company in 2018, and the deducted non-net profit attributable to shareholders of the parent company will increase by about 50% every year.
The large increase in net profit each year is mainly due to the impact of changes in the company’s traditional insurance reserve discount rate assumptions.
Personal insurance focuses on protection-oriented business, and the proportion of health insurance increases. The company’s insurance focuses on long-term protection-oriented business, and promotes the improvement of premium structure.
The company has accelerated the development of health insurance business in recent years, and the proportion of premiums in the first year of health insurance in the company’s first year has continued to increase.
The company’s health insurance premium in the first year accounted for 15% of the first year premium increased from 15% in 1H16 to 36% in 17H1, and further increased to 55 in 1H18.
The increase in the proportion of health insurance will help drive the company’s new business value rate.
Covered “Buy” rating for the first time with a target price of 60.
The 53 yuan company health insurance aims to maintain rapid development, optimize business structure and improve the value of new business.
We estimate that the company’s revenue from 2018 to 2020 will be 1601, 1,7杭州桑拿网61, and 191 billion, and its net profit will be 8.1, 9.3, and 9.9 billion.
The company is currently evaluating 2019 PEV 0.
7x, historically low.
We believe that the expected improvement is expected through the improvement of the company’s business structure.
Give company 0.
9×2019 PEV, corresponding to a target price of 60.
53 yuan, the first coverage given a “buy” rating.
Risk Warning: Macroeconomic Risks; Market Fluctuations; Unexpected Premium Growth