Shares of the Hong Kong-listed Ping An Insurance Company of China, Ltd. (HK:2318) declined by 1.83% today after the company missed Q3 earnings estimates. The company reported a net income of ¥44.6 billion in the third quarter, missing the consensus forecast of ¥50.3 billion. The third-quarter results overshadowed the company’s profit growth in the first nine months of 2024, which marked a solid recovery after five years.
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The company’s net profit attributable to shareholders increased 36.1% year-over-year in the first nine months of 2024 to ¥119.2 billion.
Ping An is a Chinese company that offers financial products and services, including insurance and asset management.
Ping An Insurance Reports Favourable Numbers
Ping An reported a growth of 8.7% year-over-year in its revenues in the first nine months, totaling ¥861.8 billion. Meanwhile, the company’s operating profit grew 5.5% to ¥113.8 billion in the first three quarters of 2024 as compared to the same period last year. This growth was mainly driven by higher investment income as the stock market improved.
Among its segments, the Life & Health business achieved high-quality growth with NBV (new business value) growing 34%. Moreover, the agent channel NBV increased 32%, while NBV per agent surged 55%.
Moving ahead, Ping An is optimistic about new opportunities in the health and senior care ecosystem in China. This is mainly attributed to a series of incremental policies by the government, designed to strengthen the country’s growth momentum.
JPMorgan Weighs in on Ping An Results
Post-results, analyst MW Kim from J.P. Morgan reiterated a Buy rating on Ping An stock. He predicts a growth rate of 57% in the share price.
Kim expects a significant upward revision in the company’s earnings expectations soon, as net profit for the first nine months of 2024 has reached 95% of the annual forecast. Overall, Kim believes that a rebound in core earnings supports the possibility of an increase in the final dividend per share.
Is Ping An a Good Stock to Buy?
According to the consensus rating on TipRanks, 2318 stock has a Strong Buy rating, supported by seven Buy recommendations. The Ping An share price forecast stands at HK$57.58, signifying an upside potential of 17.4% in the share price.
