External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Ping An disclosed 1H23 results with NBV +32.6% YoY (+45.0% restated for prior value on basis of comparable EV assumptions and method) driven by noticeable improvements achieved in Life and Health insurance segment, handily beating consensus estimates.</li><li>Even though the Group’s OPAT was down by 5.0% in 1H23, the insurer raised interim dividend by 1.1% YoY to RMB 0.93 per share, implying a potentially higher cash dividend payout in the full year to above 28.8% in FY22 under new standards (vs 29.5% under old standards).</li><li>We believe the L&amp;H segment will further unlock growth potential given 1) the agency reform has paid off, evidenced by the avg. productivity per agent +94.3% YoY in 1H23; 2) PAB’s exclusive Private Wealth Adviser(PWA) model giving access to high-net-worth PB clients contributing to ~4x of industry average bancassurance margin at 19.7%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An disclosed 1H23 results with NBV +32.6% YoY (+45.0% restated for prior value on basis of comparable EV assumptions and method) driven by noticeable improvements achieved in Life and Health insurance segment, handily beating consensus estimates.Even though the Group’s OPAT was down by 5.0% in 1H23, the insurer raised interim dividend by 1.1% YoY to RMB 0.93 per share, implying a potentially higher cash dividend payout in the full year to above 28.8% in FY22 under new standards (vs 29.5% under old standards).We believe the L&amp;H segment will further unlock growth potential given 1) the agency reform has paid off, evidenced by the avg. productivity per agent +94.3% YoY in 1H23; 2) PAB’s exclusive Private Wealth Adviser(PWA) model giving access to high-net-worth PB clients contributing to ~4x of industry average bancassurance margin at 19.7%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An (2318 HK) – 1H23 NBV Beat Consensus

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

Country Garden Holdings Co / Technical Analysis

<ul><li>Somehow the current leg of decline in China's Real estate stocks and bonds has not gotten the attention of investors and money managers.</li><li>Perhaps because the first calls of China's Lehman moment showed it was an exaggerated extrapolation.</li><li>The first decline phase was limited to corporates with highly leveraged real estate balance sheets.</li></ul>

Somehow the current leg of decline in China's Real estate stocks and bonds has not gotten the attention of investors and money managers.Perhaps because the first calls of China's Lehman moment showed it was an exaggerated extrapolation.The first decline phase was limited to corporates with highly leveraged real estate balance sheets.

Hang Seng Index Constituents 14 July 2022

Thematic (Sector/Industry)

<ul><li>The NAFR announced Life and P&amp;C premium income of all registered insurers in Sep, showing trends that: 1) the liability side of the sector continued to improve, despite recent regulatory tightening on channels, products and agent behaviour.</li><li>Personal life reversed a negative monthly YoY from -0.2% in 8M23 to +0.9% in 9M23 (Fig 1), and P&amp;C strengthened growth to +5.9% YoY in 9M23 (vs +3.2% YoY in 8M23), driven by an upward auto growth of 6.9% YoY in 9M23; 2) total investment assets expanded to RMB27.2tn in 9M23, up 8.5% from 12M22, with allocation in bonds increased to 44.0% in 9M23 (vs 43.6% in 8M23), and in stocks and equity funds down to 12.8% (-0.1pct from 8M23, Fig 15).</li><li>We believe the upward trend in long-term yields, evidenced by GCNY10 staying above 2.7% since mid Oct (Fig 18), will continue to benefit investment returns and asset performances of the sector, to serve as a shore-up for the sector’s valuation.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The NAFR announced Life and P&amp;C premium income of all registered insurers in Sep, showing trends that: 1) the liability side of the sector continued to improve, despite recent regulatory tightening on channels, products and agent behaviour.Personal life reversed a negative monthly YoY from -0.2% in 8M23 to +0.9% in 9M23 (Fig 1), and P&amp;C strengthened growth to +5.9% YoY in 9M23 (vs +3.2% YoY in 8M23), driven by an upward auto growth of 6.9% YoY in 9M23; 2) total investment assets expanded to RMB27.2tn in 9M23, up 8.5% from 12M22, with allocation in bonds increased to 44.0% in 9M23 (vs 43.6% in 8M23), and in stocks and equity funds down to 12.8% (-0.1pct from 8M23, Fig 15).We believe the upward trend in long-term yields, evidenced by GCNY10 staying above 2.7% since mid Oct (Fig 18), will continue to benefit investment returns and asset performances of the sector, to serve as a shore-up for the sector’s valuation.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Ping An reported 8.8% VNB growth YoY in 1Q23, beating the consensus of low single digit growth.</li><li>We note that, excluding the negative impact of assumption changes, the VNB growth even reached 21.1% YoY in 1Q23, reflecting robust new business across all channels.</li><li>During the 1Q23 results briefing, the management highlighted 37% YoY improvement of agent productivity, along with over 130% new business growth in bancassurance channel. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An reported 8.8% VNB growth YoY in 1Q23, beating the consensus of low single digit growth.We note that, excluding the negative impact of assumption changes, the VNB growth even reached 21.1% YoY in 1Q23, reflecting robust new business across all channels.During the 1Q23 results briefing, the management highlighted 37% YoY improvement of agent productivity, along with over 130% new business growth in bancassurance channel. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An (2318 HK) – VNB Growth Beat Expectation in 1Q23

<ul><li>Ping An saw its VNB momentum turn positive in 4Q22 with 11.7% YoY growth, as its channel reform scheme expanded to nationwide.</li><li>Excluding assumption changes, FY22 VNB declined by 17.5% YoY, narrowing from -18.9% YoY in 9M22 and -20.3% YoY in 1H22.</li><li>During the FY22 results briefing, the management guided for positive VNB growth in 1Q23 and FY23, and indicated that the new business momentum turned around in Feb 2023 and the positive growth sustained into March, driven by improving productivity across agency and multiple channels, i.e. community grid, private wealth advisers, etc. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An saw its VNB momentum turn positive in 4Q22 with 11.7% YoY growth, as its channel reform scheme expanded to nationwide.Excluding assumption changes, FY22 VNB declined by 17.5% YoY, narrowing from -18.9% YoY in 9M22 and -20.3% YoY in 1H22.During the FY22 results briefing, the management guided for positive VNB growth in 1Q23 and FY23, and indicated that the new business momentum turned around in Feb 2023 and the positive growth sustained into March, driven by improving productivity across agency and multiple channels, i.e. community grid, private wealth advisers, etc. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ping An (2318 HK) – Expect VNB turnaround in 1Q23 and FY23

China

Ping An Insurance (Group) Company of China Limited provides products and services through its five ecosystems in financial services, healthcare, auto services, real estate services and Smart City solutions. The Group's insurance business writes property, casualty, and life insurance products.

Ping An Insurance Group of (601318 CH)

Ping An (2318 HK) – 1H23 NBV Beat Consensus

Ping An disclosed 1H23 results with NBV +32.6% YoY (+45.0% restated for prior value on basis of comparable EV assumptions and method)

CMB International

Hang Seng Index Constituents 14 July 2022

Somehow the current leg of decline in China's Real estate stocks and bonds has not gotten the attention of investors and money managers. Perhaps...

Untying The Gordian Knot

China Insurance – 9M23 Monthly

We believe the upward trend in long-term yields, evidenced by GCNY10 staying above 2.7% since mid Oct, will continue to benefit investment returns

CMB International

Ping An (2318 HK) – VNB Growth Beat Expectation in 1Q23

We note that, excluding the negative impact of assumption changes, the VNB growth even reached 21.1% YoY in 1Q23, reflecting robust new business...

CMB International

Ping An (2318 HK) – Expect VNB turnaround in 1Q23 and FY23

Ping An saw its VNB momentum turn positive in 4Q22 with 11.7% YoY growth, as its channel reform scheme expanded to nationwide.

CMB International