Ping An Insurance (Group) Company of China, Ltd. Shs UnSp Singapore Depositary Receipt Repr 1/2 Sh (HPAD) AI Stock Analysis

• Market Cap: S$217.42B
• Dividend Yield: 4.51%
• Average Volume (3M): 30.90K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.78
• Revenue Growth: 7.65%
• EPS Growth: 16.83%
• Country: SG
• Employees: 273,053
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.32
• Shares Outstanding: 0
• 10 Day Avg. Volume: 23,910
• 30 Day Avg. Volume: 30,896
• PEG Ratio: 0.06
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 1.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: S$7.00 ▲(21.32% Upside)

Ping An Insurance's strong financial performance and attractive valuation are the primary drivers of its high score. The company's robust revenue growth and profitability improvements, combined with a low P/E ratio and reasonable dividend yield, make it a compelling investment. Technical analysis supports a positive outlook, though caution is advised due to potential overbought conditions.

Positive Factors

Diversified business model

Ping An's multi-segment model (life and P&C insurance, banking, asset management, technology) creates durable revenue diversification and cross-sell opportunities. This reduces reliance on any single product cycle and supports stable long-term fee and premium income.

Strong free cash flow generation

Consistent FCF growth and an FCF-to-net-income ratio near 1 indicate the company converts earnings into cash efficiently. Robust cash generation supports reinvestment, reserve funding, deleveraging, and shareholder returns, strengthening financial flexibility over time.

Solid profitability and ROE

Sustained ROE and improving net margins reflect effective underwriting, pricing and capital use across businesses. High margins and returns support internal capital formation and competitive reinvestment, enabling durable earnings power absent major market shocks.

Negative Factors

High financial leverage

A sustained D/E around 1.5 raises structural vulnerability to interest rate moves, underwriting losses, or liquidity stress. Higher leverage limits strategic flexibility, increases funding costs during stress, and amplifies balance-sheet downside in adverse cycles.

Top-line volatility

Large swings in annual revenue indicate reliance on episodic gains (investment or one-off items) or volatile sales cycles. Persistent top-line volatility complicates reserve setting, forecasting and capital planning, reducing predictability of underwriting and investment returns.

Exposure to interest rate and macro cycles

Concentration in insurance premiums and bank interest income ties earnings to interest-rate curves and macro conditions. Prolonged rate shifts or credit stress can compress margins, investment yields and asset-liability matching, posing structural earnings and reserve risks.

Ping An Insurance (Group) Company of China, Ltd. Shs UnSp Singapore Depositary Receipt Repr 1/2 Sh Business Overview & Revenue Model

Company Description

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for life insurance, property and casualty insurance, trust, securities, banking, and other businesses in the People's Republic of China. It operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Finance Enablement segments. The company offers life insurance products, including term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance products; and auto, non-auto, and accident and health insurance to individual and corporate customers. It also undertakes loan and intermediary businesses with corporate and retail customers; and provides wealth management and credit card services to individual customers, as well as trust products services, brokerage services, trading services, investment banking services, investment management services, finance lease business, and other asset management services. In addition, the company offers financial and daily-life services through internet platforms such as financial transaction information service platform and health care service platform. Further, it is involved in the provision of annuity insurance; IT and business process outsourcing services; internet, money, custom loyalty, corporation management, and credit information services; futures and currency brokerage; real estate investment and development; property leasing and management; operates as a property agency and sales agency of insurance; fund raising and distribution; commercial factoring; expressway operation; equity investment; securities investment and brokerage; fund sales and settlement; and production and sale of consumer chemicals; logistics and warehousing; e-commerce business; micro loans; consulting services; infant products; real estate consulting; and commodity trade. The company was incorporated in 1988 and is based in Shenzhen, China.

How the Company Makes Money

Ping An generates revenue through several key streams. The bulk of its income comes from premiums collected through its life and non-life insurance segments, where it offers various products such as life insurance policies, property insurance, auto insurance, and health insurance. In addition to insurance premiums, the company also earns significant revenue from its banking operations, including interest income from loans and fees from financial services. Asset management activities, including investment income and management fees, contribute further to its earnings. Strategic partnerships with technology firms enhance its digital ecosystem, enabling the company to leverage technology for underwriting, claims processing, and customer service, thereby increasing efficiency and profitability.

Ping An Insurance (Group) Company of China, Ltd. Shs UnSp Singapore Depositary Receipt Repr 1/2 Sh Financial Statement Overview

Summary

Ping An Insurance demonstrates strong financial performance with significant revenue growth and profitability improvements. The balance sheet reflects a high leverage position, which could pose risks but is currently managed effectively. Cash flow generation is robust, supporting the company's financial health. Overall, the company is well-positioned in its industry, though it should monitor its leverage closely to mitigate potential risks.

Income Statement

The company exhibits strong revenue growth with a 94.23% increase in the latest year, indicating robust expansion. Gross profit margins remain exceptionally high at 100%, reflecting efficient cost management. Net profit margin improved to 13.81%, showcasing enhanced profitability. EBIT and EBITDA margins also saw improvements, suggesting operational efficiency. However, the previous year's revenue growth was modest, and the company experienced a revenue decline two years ago, indicating some volatility.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.50, which, while improved from previous years, still indicates significant leverage. Return on equity is strong at 13.63%, reflecting effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced asset structure. However, the high leverage poses potential risks if market conditions change unfavorably.

Cash Flow

Free cash flow growth is positive at 10.32%, indicating healthy cash generation. The free cash flow to net income ratio is nearly 1, showing efficient conversion of income into cash. However, the operating cash flow to net income ratio is not available, limiting a full assessment of cash flow efficiency. The company has managed to improve cash flow metrics despite previous fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	913.12B	916.62B	802.06B	763.87B	1.06T
Gross Profit	913.12B	916.62B	802.06B	763.87B	1.06T
EBITDA	180.37B	207.86B	163.69B	183.38B	184.18B
Net Income	120.03B	126.61B	85.67B	111.01B	101.62B
Balance Sheet
Total Assets	13.51T	12.96T	11.58T	11.01T	10.14T
Cash, Cash Equivalents and Short-Term Investments	973.81B	950.37B	797.92B	747.66B	630.51B
Total Debt	1.34T	1.40T	1.49T	1.48T	1.59T
Total Liabilities	12.17T	11.65T	10.35T	9.82T	9.06T
Stockholders Equity	943.95B	928.60B	899.01B	869.19B	812.40B
Cash Flow
Free Cash Flow	408.14B	375.80B	352.59B	467.90B	77.93B
Operating Cash Flow	415.78B	382.47B	360.40B	476.78B	90.12B
Investing Cash Flow	-463.33B	-416.25B	-104.00B	-215.76B	27.93B
Financing Cash Flow	67.68B	30.95B	-222.06B	-230.87B	-136.41B

Ping An Insurance (Group) Company of China, Ltd. Shs UnSp Singapore Depositary Receipt Repr 1/2 Sh Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPAD	80 Outperform	S$217.42B	8.37	14.73%	4.51%	7.65%	16.83%
HBND	79 Outperform	S$291.73B	5.44	―	5.05%	―	―
G07	74 Outperform	S$7.86B	14.76	11.35%	3.10%	-0.39%	8.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%