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601601: Lower Discount Rate Will Support Stronger Future Shareholder Returns

Digital Transformation And Elder Care Insurance Will Drive Value In Coming Years

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601601
AnalystConsensusTarget
Not Invested
Published 07 Nov 2024

Update shared on 07 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
16.1%
7D
4.4%

Analysts have raised their price target on China Pacific Insurance Group by a modest amount, citing a slightly lower perceived discount rate while maintaining stable assumptions for fair value, revenue growth, profit margins, and future price to earnings multiples.

What's in the News

  • China Pacific Insurance (Group) has scheduled an Analyst and Investor Day, providing management with an opportunity to update the market on strategy, capital allocation, and long term growth priorities (Key Developments).
  • The board will meet on October 30, 2025 to review and approve the company’s third quarter results for the nine months ended September 30, 2025, along with related disclosures and other business items (Key Developments).

Valuation Changes

  • Fair Value Estimate remains unchanged at approximately CN¥43.81 per share, indicating no revision to the intrinsic value assessment.
  • The Discount Rate has fallen slightly from 7.20 percent to about 7.13 percent, reflecting a modest reduction in perceived risk or required return.
  • Revenue Growth is effectively unchanged at around 13.20 percent, suggesting stable expectations for top line expansion.
  • Net Profit Margin is maintained at roughly 12.43 percent, indicating no material change in projected profitability.
  • Future P/E has edged down slightly from about 8.57x to 8.56x, implying a marginally lower valuation multiple on expected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.