Company Coverage
Ping An Insurance Group (2318 HK): 1H26: Steady And Solid Growth
BUY (Maintained)
Current price:
Target price:
Upside:
HK$56.20
HK$75.00
+33.5%
Analyst
Analyst
Highlights
Ping An posted accelerating OPAT growth of 8% in 1H26, thanks to strong recovery in asset management and banking business while the life and P&C segment results were dragged by higher tax rate.
Maintain BUY with an unchanged target price of HK$75.00.
Analysis
- In line. Ping An Insurance Group’s (Ping An) operating profit after tax (OPAT) attributable to parent surged 8% yoy to Rmb84.2b in 1H26, accounting for 60% of our full-year estimates. Net profit grew faster at 36% yoy, mainly driven by: a) Rmb4.2b of positive short-term investment variance, and b) revaluation gains on convertible bonds issued by Ping An. An interim DPS of Rmb0.98 was announced, up 3.2% yoy.
- NBV growth was a slight miss. New business value (NBV) growth decelerated to 11% yoy in 1H26, implying -2% yoy in 2Q26 (1Q26: +21%). The 1H26 growth was supported by 19% sales growth, partly offset by 1.6ppt margin compression due to adverse operating assumption changes at end 25 and product mix shift toward lower-margin participating products. By channel, agency and bancassurance recorded 5%/18% yoy NBV growth in 1H26. Despite the bancassurance channel’s sales disruption in 2Q26 from tightening expense ratio regulations (Circular 65), management guided for stronger NBV growth, underpinned by continued channel diversification and product-mix optimisation.
Highlights
Ping An posted accelerating OPAT growth of 8% in 1H26, thanks to strong recovery in asset management and banking business while the life and P&C segment results were dragged by higher tax rate.
Maintain BUY with an unchanged target price of HK$75.00.
Analysis
- In line. Ping An Insurance Group’s (Ping An) operating profit after tax (OPAT) attributable to parent surged 8% yoy to Rmb84.2b in 1H26, accounting for 60% of our full-year estimates. Net profit grew faster at 36% yoy, mainly driven by: a) Rmb4.2b of positive short-term investment variance, and b) revaluation gains on convertible bonds issued by Ping An. An interim DPS of Rmb0.98 was announced, up 3.2% yoy.
- NBV growth was a slight miss. New business value (NBV) growth decelerated to 11% yoy in 1H26, implying -2% yoy in 2Q26 (1Q26: +21%). The 1H26 growth was supported by 19% sales growth, partly offset by 1.6ppt margin compression due to adverse operating assumption changes at end 25 and product mix shift toward lower-margin participating products. By channel, agency and bancassurance recorded 5%/18% yoy NBV growth in 1H26. Despite the bancassurance channel’s sales disruption in 2Q26 from tightening expense ratio regulations (Circular 65), management guided for stronger NBV growth, underpinned by continued channel diversification and product-mix optimisation.
BUY (Maintained)
Current price:
Target price:
Upside:
HK$56.20
HK$75.00
+33.5%
Analyst
Analyst
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