External broker reports(aggregated public sources), CMB International

CMB International

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

External broker reports(aggregated public sources)

Equity Bottom-Up

<ul><li>Ping An reported FY23 results, with the L&amp;H EV economic assumptions cut by 50bps on long-term investment return from 5.0% to 4.5%, and 150bps on risk discount rate (RDR) from 11% to 9.5%.</li><li>Both were for the sake of prudence in view of prolonged low interest rate and macro uncertainties. The adjustments were expected as the insurer has recorded at negative investment variances since 2018 which adversely affected the growth of EV.</li><li>Yet the impacts to VNB and L&amp;H EV outpaced market expectations. Four points to highlight: 1) Group OPAT -19.7% to RMB 118.0bn, dragged by a net loss of RMB20.7bn from asset management; 2) L&amp;H VNB amounted to RMB 39.3bn, +36.2% YoY, if subject to end-2022 assumptions on a like-for-like basis, indicating resilient growth driven by stable VNB margin (-0.5pct from 24.1% to 23.7%); 3) economic assumptions change lowered L&amp;H VNB by c.21% to RMB 31.1bn (+7.8% YoY) and L&amp;H EV by c.11% to RMB 831.0bn (-5.0% YoY) vs RMB 930.2bn (+6.4% YoY) on a likefor-like basis; 4) the Group sustained DPS growth to RMB 2.43 per share, implying 37.3% payout on shareholders’ OPAT, despite OPAT decline. Concerning investment volatilities and high base since 2Q23, we lower FY24-26E EPS to RMB 6.94/RMB 7.87/RMB 8.62 and revalue the Group based on SOTP (Fig.4) to reflect underperformed Asset management (AM) and Technology. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Ping An reported FY23 results, with the L&amp;H EV economic assumptions cut by 50bps on long-term investment return from 5.0% to 4.5%, and 150bps on risk discount rate (RDR) from 11% to 9.5%.Both were for the sake of prudence in view of prolonged low interest rate and macro uncertainties. The adjustments were expected as the insurer has recorded at negative investment variances since 2018 which adversely affected the growth of EV.Yet the impacts to VNB and L&amp;H EV outpaced market expectations. Four points to highlight: 1) Group OPAT -19.7% to RMB 118.0bn, dragged by a net loss of RMB20.7bn from asset management; 2) L&amp;H VNB amounted to RMB 39.3bn, +36.2% YoY, if subject to end-2022 assumptions on a like-for-like basis, indicating resilient growth driven by stable VNB margin (-0.5pct from 24.1% to 23.7%); 3) economic assumptions change lowered L&amp;H VNB by c.21% to RMB 31.1bn (+7.8% YoY) and L&amp;H EV by c.11% to RMB 831.0bn (-5.0% YoY) vs RMB 930.2bn (+6.4% YoY) on a likefor-like basis; 4) the Group sustained DPS growth to RMB 2.43 per share, implying 37.3% payout on shareholders’ OPAT, despite OPAT decline. Concerning investment volatilities and high base since 2Q23, we lower FY24-26E EPS to RMB 6.94/RMB 7.87/RMB 8.62 and revalue the Group based on SOTP (Fig.4) to reflect underperformed Asset management (AM) and Technology. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An (2318 HK) - Resilient DPS Despite OPAT Decline

Ping An Insurance (H)

Ping An (2318 HK) - Resilient DPS Despite OPAT Decline