China Pacific Insurance (601601) Company Research: Underestimated Long-Term Robustness Change 2

0Inject new development momentum

China Pacific Insurance (601601) Company Research: Underestimated Long-Term Robustness Change 2

0Inject new development momentum

Transformation 1.

0 to 2.

0: Carrying on the past and entering the new development cycle: In 2011, the company officially implemented transformation 1.

0, adhere to the development strategy of “focus on marketing and focus on payment”. By 2014, the main channels and term structure of individual insurance business entities had basically been formed. In the first half of 2017, the company officially launched the transformation2.

0, three key objectives: upgrading of troops, value-added services, and technological empowerment.

  1) The company continues to optimize the agent team through control, training and strict management and standardized systems at the entrance end, improving team retention, increasing the core manpower scale and proportion; under the trend of high-end demand, increasing the top performance and excellent manpower to promote long-term valueGrowth; forming future-oriented competitiveness by cultivating a new generation of manpower.

  2) Especially in the context of intensified competition at the product design level, the market will create new growth points and form competition barriers through the health and pension layout: “CPIC Blueprint” achieves new order promotion and service quality through the critical illness green communication plan and medical privilege services.Enhancement; “Taibao Homeland” is committed to building three product lines covering all ages, and working with life insurance to create a “insurance product + high-end retirement community + high-quality professional service” model to help the development of the main business of 武汉夜网论坛 life insurance.

  3) Intelligently upgrade the entire process of insurance business.

  The advantages of company ownership in the four major aspects of life insurance, property insurance, investment and shareholder return are the company’s estimated premium items: the life insurance business has long adhered to value development, the annuity pricing has been steadily lowered the company’s compensation costs, and the diversified development of guaranteed products has formed market competitivenessThe transition of property insurance business adheres to the priority of profit. The growth rate has continued to grow in the industry since 18 years and the business quality has been continuously improved. The profitability has moved closer to the industry. The investment company has changed its robustness over a long period of time.The overall contribution is positive return; the company deepens customer operations, conducts collaborative management, and has always maintained a significant level of dividend payment to its peers.

  The company’s opening bonus and debt end will be significantly improved in 2020: The company actively reserves customers for 20 years, is fully prepared, product optimization and attractive settlement yield, and its performance is significantly improved compared with the previous two years.

  We believe that the current epidemic situation only affects the new orders and value of Q1 in the short term, does not change the company’s long-term growth trend, and the protection products are expected to usher in restorative growth after the epidemic.

Overall, the company’s 20-year reduction and improvement logic is clear, and its performance is expected to be significantly shortened by 18 and 19 years.

  Investment suggestion: We believe that the company’s long-term fundamentals are stable and transformation2.

0 Seeking to bring new momentum to the company’s development.

The value development of the company’s life insurance business, the improvement in the profit and growth rate of the property insurance business, the long-term stability of the investment end, and the return on shareholders above the peers are all premiums for the company’s valuation.Significant improvement in 19 years, recovering growth is expected after the short-term impact of the epidemic, conservative segment estimates (1x P / EV for life insurance, 0 for property insurance).

9 times PB, 0 for other sections.

8 times PB and group discount of 15%) corresponding to a market value of 3969 trillion, giving a target price of 43 in 2020.

80 yuan, 31% more space than the current one, the first coverage gives a “buy” rating.

  Risk reminder: The epidemic has an unexpected impact on the agent industry, which will cause the company’s new orders to be significantly affected; if the long-term interest rate continues to fall, it will put pressure on the asset allocation of insurance companies; the decline in the equity market will affect the company’s investment end.