The People's Insurance Co (Group) of China Ltd Class H 01339

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HKD 2.61 +0.01 (0.38%)

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As of Apr 25, 2024 8:09am Delayed Price Closed

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Company Report

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PICC Group Delivered Robust NBV Growth in Its Life Insurance Business, off a Low Base

Iris Tan Mar 28, 2024

PICC Group aims to transform from a leading property-casualty insurer into an integrated one-stop shop for financial services. However, we see significant headwinds, given growing pressures on P&C underwriting margin and its lackluster agent-force performance.

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Price vs Fair Value

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01339 is trading at a 41% discount.

Price

HKD 2.55

Apr 23, 2024

Fair Value

HKD 8.30

Mar 27, 2024

Uncertainty

High

1-Star Price: HKD 5.73
5-Star Price: HKD 1.87
Economic Moat: Rqcz
Capital Allocation: Qgrwvtx

Bulls Say, Bears Say

Bulls

PICC P&C's large customer base and long operating history should give it superior insight into risk and pricing. Its diverse product range and widespread geographic reach provide attractive diversification of underwriting risk across its product portfolio.

Bears

PICC Group has relatively high exposure to online sales of health insurance product offerings on third-party internet platforms, which might be negatively impacted by ongoing regulatory tightening.

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Trading Information

Previous Close Price: HKD 2.60
Day Range: HKD 2.59–2.65
52-Week Range: HKD 2.24–3.36
Bid/Ask: HKD 2.60 / HKD 2.61
Market Cap: HKD 115.42 Bil
Volume/Avg: 38.3 Mil / 29.0 Mil

Key Statistics

Price/Earnings (Normalized): 5.06
Price/Sales: 0.21
Dividend Yield (Trailing): 7.00%
Dividend Yield (Forward): 7.00%
Total Yield: 7.00%

Company Profile

With headquarters in Beijing, PICC Group is the largest state-owned insurance group, holding a 69% stake in PICC P&C, an 80% stake in PICC Life, and a 69% stake in PICC Health Insurance. Its P&C subsidiary is the largest nonlife insurer with about one third of market share in China. Life and health insurance subsidiaries hold about 2.9% and 1.3% share, respectively. The Ministry of Finance is the largest shareholder, with 61% share. China's Social Security Fund is the group's second-largest shareholder holding nearly 13% share.

Sector: Financial Services
Industry: Insurance - Property & Casualty
Stock Style Box: Large Value
Total Number of Employees: 175,881
Website: http://www.picc.com.cn

Competitors

Valuation

Metric	01339	601318	601628
Price/Earnings (Normalized)	5.06	8.67	36.98
Price/Book Value	0.43	0.82	1.75
Price/Sales	0.21	0.92	0.97
Price/Cash Flow	—	3.26	2.72

Price/Earnings

01339

601318

601628

Financial Strength

Metric	01339	601318	601628
Quick Ratio	—	—	—
Current Ratio	—	—	—
Interest Coverage	10.95	1.00	—

Quick Ratio

No chart available

Profitability

Metric	01339	601318	601628
Return on Assets (Normalized)	2.11%	0.94%	1.11%
Return on Equity (Normalized)	13.27%	11.99%	13.86%
Return on Invested Capital (Normalized)	7.51%	7.89%	5.69%

Return on Assets