Citigroup 花旗－平安保险：业务多元化下的强劲增长

Ping An Insurance Upgrading to Buy: Diversified Financial with Strong Growth

22 March 2007 | 15 pages 英文

 Top Buy Pick for sector — We are upgrading Ping An Insurance to Buy with an
FY08 price target of HK$46.17 based on our SOTP valuation, for 30% upside.
Trading at 1.9x FY08 P/EV, 20.6x FY08 P/E and an implied New Business
Multiple (NBM) of 16x, Ping An is our Top Pick in the Chinese Insurance sector
for 2007.
 Strong Diversified earnings growth — Ping An has transformed itself
successfully into one of China’s leading diversified financial groups with all
cylinders firing in 2007. We expect the group to further capitalise on its recent
investments in non-life insurance, banking and securities over the next 2 to 3
years. We view this as a key investment opportunity for investors to ride upside
with Ping An.
 Valuation more attractive than China Life — Underperforming China Life by
41% since listing in 2004, the discount gap between China Life and Ping An is
at one of its highest points. Supported by strong premium growth and continual
successful execution of its diversified financial model, valuation discount gap
will narrow in 2007