Ping An will consider buy-backs of Hong Kong shares, CFO says
- Insurer says it may extend Shanghai equity buy-back programme to include Hong Kong shares
- Ping An said Tuesday it has allocated 10 billion yuan (US$1.49 billion) to buy-back its Shanghai traded A-shares over the next 12 months
Mainland financial giant Ping An Insurance may extend its share buy-back plan to include its Hong Kong equity, according to its chief financial officer Jason Bo Yao.
“We will consider repurchasing H-shares in future if management considers the repurchase would benefit shareholders,” Yao told a media briefing in Hong Kong on Wednesday, without providing a timeline or a specific figure on the buy-back.
In a stock exchange filing on Tuesday the company said that it plans to spent up to 10 billion yuan (US$1.49 billion) to buy-back its Shanghai traded A-shares over the next 12 months. The share repurchase reflected the fifth largest buy-back ever by a Chinese company, according to Refinitiv.
The Shenzhen based insurance, bank and technology company is listed in Hong Kong and Shanghai.
The company has 1.8 million employees.
The repurchase price will not be higher than 101.24 yuan, 46 per cent higher than its closing price in Shanghai of 69.25 yuan on Tuesday, Yao said.
“This is our first share repurchase scheme as the management considers the company’s A-shares are undervalued. We will continue to buy-back in future to bring benefit to investors. This is also aimed at supporting the regulator and the country’s share buy-back policy,” Yao said.
“Upon getting approval from our shareholders in our annual general meeting in April, we will start the buy-back. We will not buy back shares if the price is too high,” Yao said.
Yao said the company opted to repurchase shares in Shanghai because the mainland market was more volatile than Hong Kong. Last year mainland regulators relaxed rules on share buy-backs, enabling companies to use the programme as an incentive for staff.
“In comparison, the Hong Kong share buy-back rule is more restrictive,” he said.
The Shenzhen based insurer, the second largest in the nation in terms of premiums, on Tuesday reported an expectations-beating net profit for 2018 of 107.4 billion yuan, a rise of 20.6 per cent growth from the prior year.
Shares of Ping An ended 3.3 per cent higher at 71.54 yuan in Shanghai and 1.57 per cent higher at HK$84 in Hong Kong on Wednesday.
“We have five tech units valued at a total of US$70 billion,” Jessica Tan, co-chief executive of Ping An said at the press conference on Wednesday. “Some of them have been listed while some have completed fundraising from private investors. We have enough liquidity and do not need to rush to list. We will find the right timing to take them public.” Tan said at the press conference on Wednesday
She added that two of the company’s 11 technology units were profitable. The company’s technology ventures include the online financial platform Shanghai Lujiazui International Financial Assets Exchange (Lufax) and its car platform Autohome.
