Increasing the dividend yield to as high as 7.6%! Ping An bottom-fishes ICBC for the fourth time this year

One of China's largest insurance groups, Ping An of China, has made its fourth move this year to increase its stake in Industrial and Commercial Bank of China (ICBC). Public information in the Hong Kong stock market shows that on July 30th, Ping An Asset Management Co., Ltd. purchased H-shares of ICBC in the secondary market. This time, Ping An increased its holdings of ICBC's H-shares to 10 million shares, with an average purchase price of HKD 4.3378. Based on the 2023 dividend scheme, Ping An's purchase of ICBC's H-shares this time equates to a dividend yield of 7.6%, with a price-to-earnings ratio of less than 4.1 times. Multiple Previous Increases in ICBC Holdings According to relevant information, in mid to late June, Ping An Insurance (Group) Company of China, Ltd. and Ping An Life Insurance Company of China, Ltd. each purchased 10 million shares and 30.605 million shares of ICBC's H-shares, respectively. The former purchased at a unit price of HKD 4.4954 per share, while the latter purchased at a unit price of HKD 4.5875 per share. In May of this year, Ping An Asset Management also increased its holdings of ICBC by 9.157 million shares, at a purchase price of HKD 4.6958 per share. From historical records alone, Ping An has been buying more as the price decreases, showing a very determined bottom-fishing attitude. Price-to-Earnings Ratio of Less Than 4.1 Times According to the announcement, the average price of ICBC's H-shares purchased by Ping An Asset Management this time is HKD 4.3378 per share. Based on the profit data from the quarterly report ending March 2024, the price-to-earnings ratio (TTM) of the ICBC H-shares purchased by Ping An Asset Management this time is less than 4.1 times. Furthermore, based on the reference of the dividend for the year, Ping An's purchase of ICBC's H-shares this time is equivalent to a dividend yield of 7.6%. In addition, according to ICBC's 2023 annual report, its return on equity last year was 10.66%, corresponding to a price-to-book ratio (TTM) of 0.36 times, which is also relatively cost-effective in the Hong Kong stock market