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QuestionsCategory: Management QuadrantPing An – Management Stake
ashz asked 3 years ago

Hi I am looking at Ping An and according to the latest AR, it seems like the key executives hold very little stake? (i) Ma Ming ze only holds 0.01%, Sun Jian Yi (0.037%), Ren Hui Chang (0.03%), Yao Jason Bo (0.008%). This is very unusual. wondering if am reading anything wrongly? Could they be holding via a corporate vehicle that is not reported in this AR?

ashz replied 3 years ago

Also, I cannot find the compensation for the management in their report. Could you help out? isn’t it a must to set this out? http://www.pingan.com/app_upload/images/info/upload/fefe8a8e-fd10-4814-b7b2-aaecf814ff6d.pdf

ashz replied 3 years ago

its ok found the compensation!

3 Answers
Victor Chng answered 3 years ago

Hi Ash,

The major shareholder for Ping An Insurance are Charoen Pokphand and Shen Zhen government. The management team are probably made out of professional manager. Professional manager don;t usually hold a large stake in the company.

 

On a side note, if you look at the market capitalisation of Ping An is about SGD$220.6 billion. Hence 0.01% of the market capitalisation is about SGD$22.1 million. It may look small on percentage but big on the absolute amount.

 

Do note also that the method taught in Investment Quadrant cannot be used for Insurance and Banks because the ratio and analysis for this type of companies are different in nature as compare to normal companies.

ashz replied 3 years ago

I see, thank you.

in that case, would it still be appropriate to use P/E for valuation for Ping An? What should we be looking at for Ping An – any clue?

Victor Chng replied 3 years ago

I think insurance company should use PB ratio.

Wise Adler answered 6 months ago

Hi, sorry to revive an old thread.
 
How to calculate PB ratio for insurance company?

Victor Chng answered 6 months ago

Hi Wise Adler,
 
You can get the book value from the balance sheet under this term called Equity attributable to owners of the parent. Take this figure and divided by the number of shares to get book value per share. 
 
Take the share price then divided by book value per share to get PB ratio.