Core ideas:
Sunshine Insurance Group is a fast-growing private insurance service group, founded in 2004, the company currently has no actual controller, 2020 life insurance / property insurance market share ranked 12th / 7th in the industry.
The core advantages of Sunshine Insurance Group: (1) the management with founder and Chairman Zhang Weigong as the core remains stable and has rich experience in the insurance industry. At present, 6 of the company's 13 senior executives are founders, including the chairman and general manager; in addition, the chairman has nearly 40 years of experience in financial and insurance management, and the general manager has rich experience in the property insurance industry. (2) the business structure is diversified, the company's property insurance and life insurance business are profitable in a relatively short period of time, and the property insurance and life insurance business develop in coordination; (3) deepening the reform of channels, life insurance strengthens the urban layout and increases production capacity, while property insurance ploughs the exclusive agent store model.
Life insurance business: new orders grow against the trend, enrich the healthy ecosystem and enhance the competitiveness of products. Sunshine Life was founded at the end of 2007 and made a profit in six years. The premium CAGR for 2009-22 was 26.6 per cent, higher than the industry's 11.6 per cent, and its market share increased from 0.4 per cent to 2 per cent. In 19-22, the industry boom declined, but the company's new single premium CAGR was 4%, higher than all Chinese listed insurance companies. The company is mainly bancassurance, accounting for 81.3% / 10.2% of the new 22-year single premiums respectively, while the product structure is dominated by traditional life insurance and health insurance. In 2015, the company proposed to create a "healthy sunshine", with a third-class hospital "Sunshine Fusion Hospital", and build a health, nursing, pension industry chain.
Property insurance business: the structure tends to be balanced, and the car insurance expense rate needs to be further optimized. (1) the growth rate of premium is higher than that of the industry. In 2009-22, the property insurance premium CAGR was 14.9%, higher than the industry's 13.1%, of which car insurance and non-car insurance accounted for 12.5% and 21.2% respectively, and the proportion of non-car insurance increased from 19.6% in 2009 to 39% in 22 years. (2) COR showed an upward trend. The impact of the car insurance premium reform has passed, the compensation rate has improved greatly, and the overall COR of the company's property insurance has dropped to 99.9% in 22 years.
Profit forecast and investment advice: in 23-25, the company's EPS is expected to be 0.630.82 pound 1.17 yuan, segment valuation method estimates the reasonable value of the company is 5.1HKD / share, given a "buy" rating.
Risk tips: new orders decline, agent size decline, COR rise. HKD/CNY=0.93