Asia Financial (662)

Asia Financial (662) released its interim results as of June 30, 2010, profit attributable to shareholders recorded 25.049 million yuan, 82.23 percent less year on year comparison to 2009. Earnings per share of 2.5 cents interim, paying a dividend of 1.2 cents. The same period in 2009, the company recorded a net profit of 141 million yuan, an interim rate of 3.5 cents.






Excerpts of company report as follows

" China’s economy grew 11% in the year to mid-2010, while Hong Kong reported an 8% growth rate in the first quarter – a resounding bounce back from the 2.9% decline in 2009. Much of this improvement in the global economy was anticipated in the markets during 2009. After a 27.7% gain in the first half of 2009 (and a 52% rise for the full year), Hong Kong’s Hang Seng Index fell by 8% in the first six months of this year. Wholly owned Asia Insurance’s underwriting profit increased 20.0% in first half of 2010, while turnover rose 30.2%. This satisfactory result reflects management’s ongoing efforts to concentrate on more profitable market segments and take advantage of changing opportunities in the market. Asia Insurance has no direct exposure to vulnerable European sovereign debt and related investments



PICC Life Insurance Company Limited (“PICC Life”), in which Asia Financial has a 5% stake, continues to take advantage of its opportunities as a company with a nationwide licence. PICC Life reported RMB27 billion in premium income for the first quarter of 2010, up 138% on the 4th quarter of 2009. All other business performance and risk control indicators showed positive and healthy figures. The insurance liability reserves and solvency ratio were maintained at high levels in line with the fast-growing business volume. (According to China Insurance Regulatory Commission data, as of the end of July only, the Chinese People's Life premium income of 51.4 billion.)

The Group’s interests in real estate are focused on Shanghai and Suzhou and represent 4.8% of our total assets. The main project is a residential and commercial complex in Jiading area in Shanghai, in which we have a 27.5% stake. Phase 1 of the project is enjoying strong sales, with over 95% of units sold. As of mid-2010, only expenses had been booked, but the project will show profit in the second half when properties are delivered to buyers. For phase 2, main construction has been started and pre-sale is expected in October this year."

Investment performance after removing-market valuation:
Profit before tax (HK thousands):




1H 2009 = 77,149

1H 2010 = 86,896

FY 2008 = 34,787

FY 2009 = 148,223


Business improvement can be seen.



PS: according to market valuation of investment gains and losses (HK thousands):

1H 2009 = 84,926 (HSI+27.8%)

1H 2010 = -53,599 (HSI-8.0%)

FY 2008 = -868,351 (SHI-48.0%)

FY 2009 = 222,823 (SHI+52.0%)

(Those interested can see the full income statement, this shows that more fully reflect the Group's other non-market valuation by the investment performance category.)



Looking in the second half, if there are no unpredicted large scale accidents, yearly underwriting profit will reach arecord high, the major direct investment in China people's life will continue to expand (short term is not significantly reflected in the financial statements) and on the other hand,profit of the first phase of Shanghai's Jiading property projects will kick in (the estimated total pre-tax profit of RMB 96 million, after deducting the cost of land value-added taxes, about RMB 50 million).



The current 5.02 yuan per share book value of HK. If this stock was sold out due to the first half market valuation , we should consider to accept our opponents stocks.




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亞洲金融(662)公布截至2010年6月30日止中期業績,錄得股東應佔溢利2504.9萬元,較2009年同期倒退82.23%,每股盈利2.5仙,派中期息1.2仙。該公司2009年同期錄得純利1.41億元，派中期息3.5仙。



下文摘自公司業績報告。



「業績下降主要原因是本集團投資組合未變現資產的市值下滑，反映與2009年上半年環球股市顯著上升比較(恆生指數+27.8%)，2010年同期市況較為疲弱(恆生指數-8%)。集團整體營運維持盈利，全資附屬公司亞洲保險有限公司（「亞洲保險」）的承保業務盈利增長穩健。2010年上半年，亞洲保險的營業額上升30.2%，承保溢利增加20.0%。亞洲保險因著今年和去年首六個月股市不同的表現而令投資組合市值錄得未變現的減值。亞洲保險沒有直接面對歐洲主權債務危機帶來的相關投資風險。



亞洲金融投資內地的中國人民人壽保險股份有限公司（「中國人民人壽」）中，佔有5%股份。中國人民人壽繼續運用擁有全國性牌照的優勢，在2010年第一季的保費收入高達人民幣二百七十億元，較2009年第四季增加138%。所有業務的營運表現和風險控制的指標數據均屬於理想。保險責任準備金和償付能力在業務不斷擴展下，仍能維持於高水平。(另據中國保監會數據，截至7月底止，中國人民人壽保費收入514億。)



集團物業發展項目主要在上海及蘇州，總投資佔集團總資產約4.8%。其中的重點在上海嘉定區的住宅和商廈發展項目，我們佔27.5%股份。項目第一期的銷售成績理想，超過95%的單位已出售。至2010年中，會計紀錄只錄得開支，但在下半年物業交付後，項目將錄得盈利。第二期的建築工程已展開，期望在今年10月開始預售。」



除去按市值計價的投資盈虧的業績表現：



除稅前溢利(港幣千元):

1H 2009 = 77,149

1H 2010 = 86,896

FY 2008 = 34,787

FY 2009 = 148,223



可見經營業務改善。



附：按市值計價的投資盈虧(港幣千元):

1H 2009 = 84,926 (恆指+27.8%)

1H 2010 = -53,599 (恆指-8.0%)

FY 2008 = -868,351 (恆指-48.0%)

FY 2009 = 222,823 (恆指+52.0%)

(有興趣者可參看全面收益表，這表更全面反映集團其它非按市值計價類別的投資表現。)



展望下半年，如無特別大型意外發生，全年承保利潤將創出新高，主要直接投資中國人民人壽繼續擴展(短期內不顯著反映於財務報表)，另將有上海嘉定物業項目第一期利潤入潤(估計應佔稅前利潤人民幣9600萬，扣除土地增值稅等費用後，約人民幣5000萬)。



目前每股帳面值港幣5.02元。如果因為上半年按市值計價的投資虧損而遭拋售，我們應笑納對手拋出的股票。