New China Life Insurance Co Ltd Class H 01336

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HKD 16.76 +0.96 (6.08%)

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As of May 10, 2024 8:08am Delayed Price Closed

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Company Report

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China Insurance Earnings: New China Life, PICC P&C, and PICC Group Post Weaker Growth

Iris Tan May 1, 2024

New China Life, PICC Group, and PICC P&C reported larger-than-peer contractions in first-quarter net profits of 29%, 24%, and 38% year on year, respectively. This was partly due to the high base a year ago as a result of strong investment income for NCI and a record-low combined ratio for PICC P&C. We believe the results are largely in line to achieve our 2024 net profit growth of 19%, 22%, and 20% for PICC P&C, PICC Group, and NCI.

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Price vs Fair Value

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01336 is trading at a 686% premium.

Price

HKD 16.76

May 10, 2024

Fair Value

HKD 71.00

Apr 3, 2023

Uncertainty

High

1-Star Price: HKD 66.90
5-Star Price: HKD 13.80
Economic Moat: Psy
Capital Allocation: Vgwpzxlp

Bulls Say, Bears Say

Bulls

China’s emerging health insurance market has a low insurance density and penetration levels, growing at a 36% CAGR over the past four years and we expect it will grow at around 25% in the next five years.

Bears

The increasing sales of single premium bancassurance products increased NCI's interest rate sensitivity.

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News

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Chinese State-Owned Firms Establish $1.4 Billion Fund

Global News Select Jan 2, 2024 12:55am

Trading Information

Previous Close Price: HKD 15.80
Day Range: HKD 15.84–16.78
52-Week Range: HKD 12.46–24.20
Bid/Ask: HKD 16.74 / HKD 16.76
Market Cap: HKD 52.28 Bil
Volume/Avg: 17.7 Mil / 6.1 Mil

Key Statistics

Price/Earnings (Normalized): 5.17
Price/Sales: 0.65
Dividend Yield (Trailing): 7.46%
Dividend Yield (Forward): 7.46%
Total Yield: 7.46%

Company Profile

New China Life Insurance, or NCI, was headquartered in Beijing and founded by SOEs and private firms in 1996. The company is the fourth-largest life insurer in China in terms of total assets. Huijin Investment, the government’s investment company owns 31% shares of New China Life. The company was listed on the Hong Kong and Shanghai Stock Exchanges in 2011. New China Life offers comprehensive life insurance products and services to individual customers and institutional customers through nationwide distributional networks and diversified marketing channels, manages and deploys insurance funds through its subsidiaries, including Asset Management Company and Asset Management Company (Hong Kong).

Sector: Financial Services
Industry: Insurance - Life
Stock Style Box: Large Value
Total Number of Employees: 30,662
Website: https://www.newchinalife.com

Competitors

Valuation

Metric	01336	601318	601628
Price/Earnings (Normalized)	5.17	9.05	40.57
Price/Book Value	0.48	0.85	1.84
Price/Sales	0.65	0.96	1.51
Price/Cash Flow	0.50	3.40	2.20

Price/Earnings

01336

601318

601628

Financial Strength

Metric	01336	601318	601628
Quick Ratio	—	—	—
Current Ratio	—	—	—
Interest Coverage	1.04	1.00	—

Quick Ratio

No chart available

Profitability

Metric	01336	601318	601628
Return on Assets (Normalized)	0.62%	0.94%	0.96%
Return on Equity (Normalized)	7.77%	11.99%	12.05%
Return on Invested Capital (Normalized)	27.23%	7.89%	5.38%

Return on Assets