1Q OPAT a slight beat; positive outlook for full-year NBV and life OPAT acceleration

PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR <GO> OR http://www.cmbi.com.hk 1 SMN 29 Apr 2026 CMB International Global Markets | Equity Research | Company Update Ping An (2318 HK/601318 CH) Ping An (2318 H K/601318 CH) - 1Q OPAT a slight beat; positi ve outlook for full- year N BV and life OPAT accel eration 1Q OPAT a slight beat; positive outlook for full-year NBV and life OPAT acceleration China Insurance 12-mth Price Performance Source: FactSet Auditor: Ernst & Young Related reports: 1. 1Q26 preview: Expect resilient OPAT, NPAT to slide on equity swings; solid NBV uptrend, Apr 22, 2026 2. Group OPAT back to double-digit rise; expect CSM to return to positive growth in 2026E, Mar 30,2026 3. Banca fuelling NBV growth in jumpstart sales; 4Q earnings could ease on growth stock corrections, 23 Jan 2026 4. China Insurance - Easing solvency risk factors to steer insurance funds into long-term stockholdings, 8 Dec 2025 5. 3Q earnings beat; improving business quality with catalysts across-the-board worth to expect, 31 Oct, 2025 6.1H25 a mixed bag: NBV beat while OPAT in line, Aug 28, 2025 Ping An posted solid 1Q results, with Group OPAT up 7.6% YoY to RMB40.8bn, outpacing our estimate of RMB39.2bn (link). This increase can be attributed to 1) a resilient L&H OPAT uptrend (+4.6% vs CMBI est: +4.5%); 2) PAB profit turnaround (+3.0%); and 3) a notable surge in AM profitability (+193.3%). Group NPAT fell 7.4% YoY to RMB25bn, slightly better than our estimate of RMB24.3bn, due to heightened market headwinds in 1Q26. Group net asset value (NAV) grew 1.8% from year-start to RMB1.02tn, in line with our forecast. Life NBV grew 20.8% YoY to RMB15.6bn (vs. CMBI est: RMB15.4bn), primarily driven by new business sales (+45.5% YoY) partially offset by a softening margin (-4.8pct YoY). P&C UW performance was a beat, with COR down 0.8pct YoY to 95.8% and non-auto premium rising 19.5% YoY, which exceeded the industry average growth of 5.3% YoY in 1Q26. Mgmt. mentioned in the call that achieving double-digit NBV growth in 2026E is a baseline target, and we are positive on a high-teens NBV uptick and life OPAT acceleration in 2026E as CSM approaches an inflection point. Maintain BUY, with our SOTP-based H/A-share TP at HK$86/RMB75, implying 0.83x FY26E P/EV.  1Q OPAT a slight beat, driven by L&H/PAB/AM. Group OPAT growth in 1Q26 was mainly driven by increases in Life & Health (+4.6%), Ping An Bank (+3.0%) and AM (+193.3%). L&H OPAT growth was broadly in line with our forecast, with new business CSM likely to achieve a promising rise amid stable interest rates. The banking business returned to positive growth, driven by 1) a stabilized NIM (1Q26: 1.79% vs FY25: 1.78%), and 2) non-interest income growth from wealth management and bond investments. AM OPAT amounted to RMB3.2bn in 1Q26, nearly tripling from 1Q25, thanks to upside from brokerage and asset management businesses am