PICC Property and Casualty Co Ltd Class H 02328

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HKD 10.56 +0.22 (2.13%)

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As of May 17, 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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02328 is trading at a 339% premium.

Price

HKD 10.34

May 16, 2024

Fair Value

HKD 32.00

Mar 27, 2024

Uncertainty

High

1-Star Price: HKD 32.30
5-Star Price: HKD 7.60
Economic Moat: Hvr
Capital Allocation: Bzjnmmvx

Bulls Say, Bears Say

Bulls

PICC P&C boasts a higher-than-peer reserve level, in terms of loss and loss-adjustment reserve accounting as a percentage of net earned premium.

Bears

Increasing competitions in the nonauto P&C insurance business is likely to weigh on PICC P&C's overall underwriting profitability.

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Trading Information

Previous Close Price: HKD 10.34
Day Range: HKD 10.30–10.56
52-Week Range: HKD 8.03–11.54
Bid/Ask: HKD 10.54 / HKD 10.56
Market Cap: HKD 233.99 Bil
Volume/Avg: 64.2 Mil / 34.2 Mil

Key Statistics

Price/Earnings (Normalized): 8.46
Price/Sales: 0.47
Dividend Yield (Trailing): 5.06%
Dividend Yield (Forward): 5.06%
Total Yield: 5.07%

Company Profile

With headquarters in Beijing, PICC P&C is China’s largest nonlife insurer, commanding over 33% market share in the country. It was founded by the People’s Bank of China in 1949. The company is a flagship subsidiary of the PICC Group, a state-owned insurance group, which owns 69% of PICC P&C. The company offers a wide range of nonlife insurance products, including auto, commercial property, liability, credit and surety bond, accidents and health, energy and aerospace, and agricultural insurance.

Sector: Financial Services
Industry: Insurance - Property & Casualty
Stock Style Box: Large Value
Total Number of Employees: 164,653
Website: https://property.picc.com

Competitors

Valuation

Metric	02328	06060	601318
Price/Earnings (Normalized)	8.46	4.59	9.20
Price/Book Value	0.90	0.97	0.87
Price/Sales	0.47	0.67	0.98
Price/Cash Flow	94.72	—	3.46

Price/Earnings

02328

06060

601318

Financial Strength

Metric	02328	06060	601318
Quick Ratio	—	—	—
Current Ratio	—	—	—
Interest Coverage	25.36	9.63	1.00

Quick Ratio

No chart available

Profitability

Metric	02328	06060	601318
Return on Assets (Normalized)	3.55%	0.60%	0.94%
Return on Equity (Normalized)	10.83%	1.60%	11.99%
Return on Invested Capital (Normalized)	9.25%	1.86%	7.89%

Return on Assets