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China Life Insurance Co Ltd Class H 02628

Morningstar Rating
HKD 10.84 −0.08 (0.73%)
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Company Report

China Life Looks at Senior-Care Market for Long-Term Growth

As the largest and oldest state-owned life insurer, China Life Insurance enjoys a reputable brand, giving it a leg up in sales of commodity like insurance products. We think China Life is well positioned for ongoing urbanization and the government’s increasing efforts to boost rural residents’ welfare. The large scale and strong foothold in underpenetrated rural markets translate to low administration expense for China Life.

Price vs Fair Value

02628 is trading at a 273% premium.
Price
HKD 10.92
Fair Value
HKD 16.00
Uncertainty
High
1-Star Price
HKD 73.00
5-Star Price
HKD 83.00
Economic Moat
Xmf
Capital Allocation
Cklmdttn

Bulls Say, Bears Say

Bulls

We expect rising demand for bancassurance products, given the falling yield level of bank wealth-management products.

Bears

China Life's historical growth in embedded value and new business value is lower than peers' as its product mix tilts toward short-term savings-type insurance products with low profitability.

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News

Trading Information

Previous Close Price
HKD 10.92
Day Range
HKD 10.7611.10
52-Week Range
HKD 8.1914.18
Bid/Ask
HKD 10.82 / HKD 10.84
Market Cap
HKD 305.82 Bil
Volume/Avg
25.7 Mil / 43.9 Mil

Key Statistics

Price/Earnings (Normalized)
11.46
Price/Sales
0.48
Dividend Yield (Trailing)
4.81%
Dividend Yield (Forward)
4.27%
Total Yield
4.88%

Company Profile

With headquarters in Beijing and commanding about 20% market share, China Life Insurance is the largest life insurance company in China. The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms. While the bulk of profits stem from life insurance policies, additional operations include short-term policies such as accident and health insurance. The company is focusing on building a senior-care ecosystem and reforming a new agent team for long-term growth.
Sector
Financial Services
Industry
Insurance - Life
Stock Style Box
Large Core
Total Number of Employees
100,000

Competitors

Valuation

Metric
02628
601318
Price/Earnings (Normalized)
11.468.85
Price/Book Value
0.580.83
Price/Sales
0.480.94
Price/Cash Flow
0.703.32
Price/Earnings
02628
601318

Financial Strength

Metric
02628
601318
Quick Ratio
Current Ratio
Interest Coverage
1.00
Quick Ratio
No chart available

Profitability

Metric
02628
601318
Return on Assets (Normalized)
0.96%0.94%
Return on Equity (Normalized)
12.05%11.99%
Return on Invested Capital (Normalized)
5.38%7.89%
Return on Assets
02628
601318
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Insurance - Life Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
China Life Insurance Co Ltd Class H
CILJF
Ysjc$101.0 Bil
Ping An Insurance (Group) Co. of China Ltd Class H
PIAIF
YnwbxpmkdLfy$99.0 Bil
Ping An Insurance (Group) Co. of China Ltd ADR
PNGAY
Shs$99.0 Bil
AIA Group Ltd ADR
AAGIY
Tlkbn$82.0 Bil
AIA Group Ltd
AAIGF
Pkyf$82.0 Bil
Aflac Inc
AFL
QkkhplywCrxqpt$50.5 Bil
MetLife Inc
MET
BqqxymzXbxlf$49.1 Bil
Manulife Financial Corp
MFC
CgtqxvcrRtz$46.1 Bil
Prudential Financial Inc
PRU
JcxfgdmPxhg$41.0 Bil
Prudential PLC ADR
PUK
SflymwxcDfthl$24.8 Bil

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