HKEX | 2318
Ping An 1H net profit up 68.1%, with no listing plans of technology companies in short term
In response to media reports that Ping An (2318)'s OneConnect is going to be listed in the US, Jessica Tan, Co-CEO of the company said that OneConnect is still going through the initial stage. At present, it will focus on revenue growth and will not target profit making. In addition, Lufax Holding, also a business owned by Ping An, maintained steady growth and will reduce the scale and transformation of P2P services in response to regulatory requirements, while P2P services currently account for less than 20%. As for when the technology companies will be listed, she replied by saying that some of the companies just completed funding rounds and there is no need to be listed in short term. More disclosure will be done when there appear such plans.
As for the company's alleged involvement in HSBC(5)’s earlier personnel changes, another Co-CEO Lee Yuan-siong said that the company's investment in HSBC is purely industry investment. As the two are involved in long-term cooperation, Ping An is very familiar with HSBC's management, is impressed with HSBC's operating stability and dividend ratio. He also pointed out that in the past, HSBC helped the company as a shareholder of the company, especially in terms of risk management and operational concentration.
Regarding whether the company will have a next round of buy-back plans, Chief Financial Officer Jason Yao said that future buy-backs mainly depend on the stock price and market performance. The company hopes to pay back the shareholders through repurchase and dividends, but Yao emphasises that repurchase and dividends are not the norm.
Ping An’s net profit attributable to shareholders of the parent company in the first half of the year was RMB 97.676 billion, up 68.1% year-on-year. Earnings per share were RM B5.48; interim dividend RMB 0.75, up 21% year-on-year. The operating profit attributable to shareholders of the parent company was RMB 73.464 billion, up 23.8% year-on-year.
In the first half of the year, the profit from retail business was RMB 66.576 billion, up 32.1% year-on-year, accounting for 90.6% of the operating profit attributable to shareholders of the parent company. The number of individual customers reached 196 million, a 6.6% increase from the beginning of the year. In the first half of the year, the number of new customers was 20.09 million, and the average operating profit was about RMB 340, up 20.9% year-on-year. The company's life and health insurance business achieved an operating profit of RMB 48.433 billion, a year-on-year increase of 36.1%. The new business value rate of life and health insurance business reached 44.7%, up 5.7 percentage points year-on-year. Ping An Property & Casualty realized an operating profit of RMB 10.039 billion, up 96.6% year-on-year.