Xinhua Insurance (601336) Quarterly Report Review 2019: New Order Growth Improves Significantly, Business Structure Continues to Optimize

Xinhua Insurance (601336) Quarterly Report Review 2019: New Order Growth Improves Significantly, Business Structure Continues to Optimize

Core points: 1.

The event company released its 2019 quarterly report.

2.

Our Analysis and Judgment 1) The net profit grows by about 30% each year, and the premiums increase slowly in the first quarter of 2019. The company has achieved a total operating income of 495.

65 ppm, a ten-year increase of 7.

4%; net profit attributable to shareholders of the parent company33.

67 ppm, an increase of 29 in ten years.

1%; basic EPS1.

08 yuan, an annual increase of 28.

6%; expected average ROE is 4.

85%, a year to raise 0.

81 averages.

The increase in net profit is expected to increase the premium income. In the first quarter of 2019, the company realized a premium income of 431.

69 ppm, an increase of 9 in ten years.

5%, achieving steady growth.

2) New single-line business achieved rapid growth, business structure continued to be optimized in the first quarter of 2019, and the company achieved first-year premium income of 193.

42 ppm, an increase of 23 in ten years.

98%, of which, the first year premium of long-term insurance is 71.

63 ppm, an 18-year increase.

0%; short-term insurance premiums 21.

79 ppm, an increase of 48 in ten years.

7%, a significant improvement over the average growth rate of the same period in 2018, which helps promote the growth of new business value.

The company’s personal insurance channel focuses on the insurance business with health insurance as its core, and adopts the sales strategy of “promoting the main business with supplementary benefits”, which has achieved remarkable results.

The company’s business structure was continuously optimized, and the proportion of long-term insurance and futures delivery business increased.

In the first quarter of 2019, the company’s first-year insurance premiums accounted for 16% of the total premiums.

59%, increase by 1 every year.

2 units; first-year premiums of long-term insurance accounted for 99% of first-year premiums of long-term insurance.

87%, increasing by 0 every year.

12 units.

The optimization of business structure is conducive to the improvement of new business value rate.

3) The return on investment has declined and the performance is lower than expected. By the end of March 2019, the company’s investment assets were 7,307.

73 ppm, an earlier increase of 4.

4%.

The return on investment performance was lower than expected.

In the first quarter of 2019, the company realized investment income (including changes in fair value) 74.

84 trillion, a reduction of 0 a year.

3%.

Annualized total investment yield 4.2%, down by 0 compared with the first quarter of 2018 and before.

1 digit and 0.

4 units.

3.

Estimation and investment advice The company focuses on health insurance as the core protection business. The health insurance business has an early layout, great strength and significant advantages.

The business structure and quality have been continuously optimized, the value rate has continued to increase, and gradually improved.

We continue to be optimistic about the company’s future development prospects and give a “recommended” rating, predicting that the EV for 2019-2021 will be 65.

49 yuan / 77.

27 yuan / 87.

36 yuan, corresponding to 2019-2021 PEV is 0.

89X / 0.

75X / 0.

66X.

4.

Risk prompts that the interest rate curve will move 青岛夜网 downwards; insurance product sales will fall short of expectations.