logo
Ping An Profit Misses Estimates Dented by China Slowdown

Ping An Profit Misses Estimates Dented by China Slowdown

Yahoo21-03-2025

(Bloomberg) -- Ping An Insurance (Group) Co. missed analyst estimates as China's economic slowdown and property market crisis weighed on value of assets. The shares dropped.
Amtrak CEO Departs Amid Threats of a Transit Funding Pullback
New York Subway Ditches MetroCard After 32 Years for Tap-And-Go
Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style
NYC Plans for Flood Protection Without Federal Funds
A Malibu Model for Residents on the Fire Frontlines
Net income reached 126.6 billion yuan ($17.5 billion), compared with 85.7 billion yuan a year earlier, the Shenzhen-based company said in a filing to the Hong Kong stock exchange Wednesday. That trailed the 134.5 billion yuan average estimate of 22 analysts surveyed by Bloomberg.
Operating profit, which the insurer says better reflects performance by stripping out short-term investment volatility and one-time items, rose 9%. That compared with a 20% slump in the previous year.
Ping An fell 5% to close at HK$49.3 in Hong Kong, the most in about five months.
The asset management business recorded an 11 billion yuan loss, as a prolonged property downturn and slower growth weighed on the value of investments.
That said, its earnings stability is expected to improve significantly, according to Citic Securities Co. A 15% rally in the CSI 300 Index last year bolstered the value of Chinese insurers' equity holdings, helping competitor China Life Insurance Co. to more than double its profit.
Investment income more than quadrupled to 161 billion yuan, according to the filing. Yet net impairment losses on financial assets climbed 10% to 85.6 billion yuan, while such losses on other assets jumped more than fivefold to 7.2 billion yuan.
Ping An took 'very prudent' provisions and its asset quality has been improving 'significantly,' Co-CEO Michael Guo told Bloomberg TV.
The industry's profit outlook will get brighter this year on higher equity allocations, and as more long-term bond purchases match assets with their liabilities, according to Bloomberg Intelligence analyst Steven Lam. The CSI 300 has gained 1.4% this year.
Chinese insurance stocks are embarking on a slow bull run as their products become more attractive in a low interest rate environment and competition from smaller players weaken, Citic analysts wrote in a report this week.
New business value, which measures the profitability of new life policies sold, grew 28.8%, slowing from a 34% gain in the first nine months.
Top life insurers like Ping An are switching their focus to profit-sharing policies this year, which are 'the most competitive products' in the market with an estimated 3% actual return, Citic analysts led by Tong Chengdun wrote in the report.
Ping An has reduced pressure from real estate and fintech losses, improved its position in the bancassurance channel and increased allocations to top banks, which promise to stabilize its profits going forward, they wrote.
The insurer's property-related risk exposure has dropped to a 'very controllable range' after provisions and writedowns in the past few years, Guo said in an interview later.
The company doesn't expect any further major impairments going forward, as the real estate market stabilizes amid growing government support, he added.
'The property market is already forming a bottom. What is uncertain is how long it will take to rebound,' he said. 'But from the perspective of provisions, we've basically covered any remainder' of the risk.
The company's outstanding real estate investments stood at 203 billion yuan as of Dec. 31, or 3.5% of its insurance funds portfolio, according to the filing. That dropped from 4.3% a year earlier.
The asset management business, which also includes units from securities to trust, swung to a 19.5 billion loss in 2023, the first in at least five years, before the loss shrank 43% last year.
(Updates with Co-CEO comments on property exposure from 14th paragraph.)
Tesla's Gamble on MAGA Customers Won't Work
A New 'China Shock' Is Destroying Jobs Around the World
How TD Became America's Most Convenient Bank for Money Launderers
The Real Reason Trump Is Pushing 'Buy American'
The Future of Higher Ed Is in Austin
©2025 Bloomberg L.P.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Meta Platforms (META) Bets Big on AGI With $10 Billion Push and New AI Dream Team
Meta Platforms (META) Bets Big on AGI With $10 Billion Push and New AI Dream Team

Yahoo

time6 minutes ago

  • Yahoo

Meta Platforms (META) Bets Big on AGI With $10 Billion Push and New AI Dream Team

Meta Platforms, Inc. (NASDAQ:) is one of the 10 AI Stocks on Wall Street's Radar. On June 10, Bloomberg News reported that the company's CEO, Mark Zuckerberg, is setting up a team of experts to achieve what is known as 'artificial general intelligence' (AGI), or machines that can match or surpass human capabilities. Citing sources, the report has revealed that the new AI team is being set up along with a reported investment of over $10 billion in Scale AI. It further reported how Scale AI founder Alexandr Wang is expected to join the group after a deal is done. Reportedly, Zuckerberg is planning to personally recruit around 50 people, including a new head of AI research for the AGI team. The decision is being made after looking at the performance and reception of Meta's latest large language model, Llama 4, the report stated. While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.

House GOP approves ‘technical changes' to Trump agenda bill
House GOP approves ‘technical changes' to Trump agenda bill

The Hill

time8 minutes ago

  • The Hill

House GOP approves ‘technical changes' to Trump agenda bill

House Republicans on Wednesday greenlit a series of 'technical changes' to the party's tax cut and spending package, removing language that would have thrown their effort off course in the Senate. The chamber approved the tweaks — which were tucked inside a procedural rule for a separate measure — in a 213-207 vote, weeks after Republicans passed the sprawling package full of President Trump's legislative priorities. The adopted rule also tees up a final vote on the White House's bill to claw back $9.4 billion in federal spending. House GOP leaders moved to make the changes after the Senate parliamentarian scrubbed through the legislation — a procedure known as the 'Byrd bath' — and identified provisions and language that do not comply with the strict rules for the budget reconciliation process, which the GOP trifecta is using to circumvent a Democratic filibuster in the Senate and approve the bill by a simple majority. Leaving the legislation as it was risked the parliamentarian ruling that it was not compliant, which would have resulted in the threshold for passage in the Senate increasing from a simple majority to 60 votes — allowing Democratic opposition to block it. The changes to the Trump agenda bill — officially titled the 'One Big Beautiful Bill Act — pertain to defense funding, energy policy and changes to Medicaid. For defense, Republicans nixed $2 billion for the enhancement of military intelligence programs; $500 million for the development, procurement and integration of maritime mines; and $62 million to convert Ohio-class submarine tubes to accept additional missiles. On the energy front, meanwhile, the changes removed a provision that would have reinstated leases for a proposed copper and nickel mine that had been renewed under the first Trump administration but revoked under Biden. The mine would have been located near an area known as the Boundary Waters Canoe Area Wilderness, a nature preserve that contains canoe routes and species including black bears, moose and foxes. While leaders moved to strike some portions of the bill, they still plan to fight for those provisions when the package hits the Senate floor. 'We disagree; ultimately we're going to try it again on the Senate floor,' House Majority Leadere Steve Scalise (R-La.) said Tuesday. ' We disagree with the parliamentarian. … But you can't take the risk on any of them. You cannot take the risk because if any one of them is ruled on the Senate floor to be fatal, it's a 60-vote bill. The whole bill is a 60-vote bill — you can't take that risk.' With the changes made, the House is now expected to formally send the package to the Senate, where Republicans are mapping out their own changes to the behemoth bill. Some GOP senators want to decrease the state and local tax (SALT) deduction cap, others are pushing to increase the spending cuts in the bill, and a subset are pressing for a smaller rollback of the green energy tax credits that Democrats approved in 2022. Any changes to the House bill in the Senate, however, risks party leadership losing support in the lower chamber, which will have to approve the Senate's tweaks before the bill can head to Trump's desk for signature. Party leaders are still hoping to enact the package by July 4, but that timeline is coming into serious question as Republicans remain at odds over a series of high-stakes issues. Rachel Frazin contributed.

Tesla (TSLA) Faces Delivery Slump as Wells Fargo Sticks With $120 Price Target
Tesla (TSLA) Faces Delivery Slump as Wells Fargo Sticks With $120 Price Target

Yahoo

time10 minutes ago

  • Yahoo

Tesla (TSLA) Faces Delivery Slump as Wells Fargo Sticks With $120 Price Target

Tesla, Inc. (NASDAQ:) is one of the 10 AI Stocks on Wall Street's Radar. On June 10, Wells Fargo reiterated an 'Underweight' rating on the stock with a $120 price target. The firm is sticking with its underweight rating, stating that the company's Q2 deliveries are 'on track for another poor quarter.' 'Most of TSLA May delivery results are now out. Once again, global deliveries are trending meaningfully weaker, with May trending 23% lower y/y and Q2 QTD trending 21% lower y/y. All three key regions are double-digit % lower, with EU the worst.' North America, Europe, and China— Tesla's key regions— have been experiencing double-digit percentage declines, the firm noted, further revealing that the 'fundamentals of the core auto business continue to weaken.' It further said that 'order' pricing on the website appears stable over the LTM,' but 'aggressive financing promotions continue to act as price cuts.' This, coupled with lower leverage, is a risk to Q2 margins. Attention is now being diverted to Austin Robotaxi deployment on June 12, which the firm doubts 'the likely limited debut will be enough to overshadow the poor fundamentals.' The firm also pointed toward China, Tesla's second-largest market, which is 'trending 22% lower QTD.' The firm asserted how the 'competition in China is beginning to take its toll on TSLA's business,' as local OEMs like BYD (SZ:002594) and Chery 'continue to undercut TSLA on pricing.' While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store