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Ping An Bank (000001) Company In-depth Report: Ping An is Extraordinary

10/03/2020

Ping An Bank (000001) Company In-depth Report: Ping An is Extraordinary

Core Ideas Why Can Ping An Bank Successfully Transform?

Backed by the group, it is the real moat of Ping An Bank.

(1) Client: Ping An Bank is the only bank with an insurance subsidiary, and this insurance is still the largest insurance company in China; (2) Ecology: The five major ecosystems of the group can meet customers’ one-stop service needs, crossSales greatly promote Ping An Bank’s business; (3) Technology: Ping An Bank is backed by a group, and the group’s technology can be shared and exported to the bank.

From the “shape” of retail, to the “soul” of owning retail.

(1) The past two years have been the first phase of transition. With the “shape” of retail banks: First, fully support retail, starting with LUM and adjusting the structure first. The grasp is the retail “three leading” credit cards.Loans and auto financing; Secondly, unconditional compression of corporate loans, and even the remaining corporate loans, structure, and industry are very different from before; finally, the stock risk is cleared, and continuous vigorous write-offs are made, and the degree of bad substitution is reduced to 100%.Within (2) the second phase of transformation is now underway, the goal is the existence of the “soul” of retail banks: First, retail cuts from LUM to AUM, the specific means include wealth management, payroll on behalf of the purchaser, and second;, Use investment banks to pry, do not take up capital and credit lines in a way that is refined and light.

Technology makes overtaking possible.

(1) Change the growth curve of customer acquisition: In the traditional model, the development of banking business is linear, and the growth of discrete banks cannot be separated from the industry curve; under the blessing of fintech, customer acquisition can change from linear to non-linear growth; (2)More accurate risk identification: In the traditional model, banks can only obtain the basic information submitted by customers. Banks outside this size can do nothing.

With the arrival of big data, everything is data. Previously, overlooking high-risk businesses, combined with big data’s accurate identification of risks, can also become low-risk businesses.

Investment suggestion: The market’s understanding of Ping An Bank’s retail transformation is still about success or failure, and we think this is only a matter of time.

Ping An Bank is a bank that cannot be copied, and a bank that is not willing to be ordinary.

In the past two years, the company has completed the adjustment of its 杭州桑拿 business structure, digested historical burdens, and its performance has begun to enter the harvest and redemption period.

We expect that Ping An Bank’s net profit growth rate will remain above 15% in the next three years, and ROE will enter the recovery channel, which is currently estimated to be only 1.
.

0x19PB, the first coverage, giving a deep recommendation level.

Risk warning: The economic downturn exceeds expectations, causing asset quality to deteriorate, and the transition progress is less than expected.