Betting on the Chinese consumer – Ping An Insurance

Chief Investment Officer and founder of Aitken Investment Management
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I remain structurally bullish view on Chinese consumer-facing companies. With strong population growth and rising wages I think the outlook for the Chinese consumer is strong.  Today I thought I’d update you on Ping An Insurance (2318HK), a company I think has every chance of growing at a multiple of Chinese GDP over the next 10 years.

Ping An is a Hong Kong listed Chinese insurance company, leveraged to numerous structural growth themes and is a significant regulatory reform beneficiary. Ping An announced a very solid FY17 result last week and we continue to see a strong path of growth ahead for the company.

The results again highlighted Ping An’s best-in-class insurance status. Net profit after tax (NPAT) was 5-10% ahead of market expectations with traditional insurance (life and property and casualty) and internet segments (or Ping An's fintech investments) all beating consensus comfortably. The RMB 89 billion reported earnings were up 43% on FY16 (RMB 76.2 billion was consensus), and life NBV (net book value) growth of 33% was very strong. Investment income also climbed 12%, new business value increased 33%, and the net premium earned increased 34%.

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