Ping An of China (601318): Analysis of Fintech Strategy: Technology Empowerment Begins with One Step
Significance of Ping An’s development of fintech: It has a strategic and forward-looking development of science and technology to enable finance, and a longer-term growth driver of profit models.
China Ping An’s historical verification has full strategic foresight. From 2018, the significance of financial technology will be further expanded. The promotion of technology can improve the efficiency of traditional financial services, reduce business costs, strengthen risk management and control, and create high-quality products and the ultimate service experience.; Light capital income generated by realizing external output monetization, and “finance + technology” dual drive promote a more balanced profit model with long-term growth momentum.
The advantages of Ping An China’s development of fintech: rich application scenarios + real transaction data + smooth business monetization provide fertile ground for technological development.
Compared with Internet companies, China Ping An Development Technology has three major advantages: 1) diversified application scenarios, Ping An integrated financial, medical, automotive, real estate, urban and other multi-faceted application scenarios, supporting technical application testing landing; 2) sinking channels bringMassive real closed-loop transaction data; 3) The business value can be well converted, and the perfect business chain and cooperation channels can achieve value output.
FinTech boosts operating profit: First, to achieve positive income as a direct contribution, and second, technology to help increase the number of users and the average customer value.
At present, the financial technology subsidiaries of the group such as Auto House and Lufax have achieved profit and are contributing to operating profit. At the same time, the use of fintech helps to increase customer size and average profit per customer: 1) Benefit from continuous optimization of products, Channels and scenarios, the number of group personal customers, Internet users and effective active customers has grown steadily; 2) Thanks to the opening of the technology-powered platform, the cross-selling penetration rate and the number of per-contract contracts within the group have steadily increased, and the excellent service experience in the future will graduallyBecoming a core competitiveness is further reflected in the product premium and improving per-capita profit.
Technology enables traditional financial business to gradually enter the ascending channel: 1) Life insurance: effectively apply AI technology to solve the pain points such as the increase of agents, training, team management, and sales models, and improve agent retention and productivity.
The company combined AI selection and interviews with more than 11 million prospective recruits, and its 13-month retention agent recognition rate reached 95.
4%; the use of thousands of people and thousands of faces to achieve a high performance of the population to improve efficiency, is expected to change from the time of ordinary agent training to become a high performance manpower reset 18 months 36 months to 19 years target 15 months.
2) Property insurance: under the homogeneous competition, we will strengthen the risk control and services for the application of science and technology, and build core competitiveness.
The auto insurance “Safe and Good Car Owner” APP has exceeded 55 million registered users as of 2018, and ranks among the top in the industry; P & C uses OMO’s online and offline integration service model to provide one-stop self-service quick claims and controllable risks.
3) Banks: embrace technology in the transformation process.
In terms of retail business, Ping An Bank proposes to connect with each other online and offline: integrate and upgrade the original three major APPs online, and embed a variety of financial technologies and services to upgrade to pocket banks4.
0; Create 136 new retail stores “lightweight, community-based, intelligent, and diversified” offline.
For public affairs, the bank’s strategy of focusing on high-quality technology empowers management and drives business innovation, such as major pocket financial apps for SMEs, supply chain accounts receivable service platform (SAS), and SME credit data loan (KYB)Wait.
4) Investment: Big data and advanced models achieve more effective matching of assets and liabilities.
Before investing, consider the product’s pricing interest rate, compensation costs, and solvency constraints to perform strategic asset allocation and differentiate account management. After investment, use EVA to evaluate risk appetite and risk tolerance for risk management to maximize risk and seek method profits.The result is that the absolute value and stability of Ping An’s investment return rate are at the forefront of the industry, and the duration gap of assets and liabilities is from August 2013.
6 years gradually to 6 in 2018.
Estimates and investment recommendations: Technology empowers finance, enhances customer conversion rate and per-capita profit, and expands traditional financial business to maintain a leading position, maintain the driving force for operating profit growth, and maintain a buy rating.
Maintain the company’s profit forecast. EPS is expected to be 8 in 19-21.
65 and 10.
The life insurance under the segment assessment method refers to AIA and the company’s current ROEV, which is converted to 1 in 2020.
35XPEV, P & C, securities, and trusts use comparable companies to benchmark PB and PE valuations in 2020. Banking and fintech businesses use market value, and the total corresponding segment measurement is 105.
8 yuan, follow-up technology enables finance to further realize business value, and the stability of the debt end under the conversion of life insurance will drive the estimated premium and maintain the buy rating.
Risk Warning: The expansion scale of technology companies exceeds expectations; the decline in comprehensive financial 合肥夜网 synergies; the conversion of main life insurance business is less than expected; the increase in capital market changes and the rapid decline in long-term interest rates.