SHSE:601601

Stock Analysis Report

China Pacific Insurance (Group)

Executive Summary

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People’s Republic of China.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has China Pacific Insurance (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 601601's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

601601

-0.4%

CN Insurance

-2.4%

CN Market


1 Year Return

-20.7%

601601

-23.2%

CN Insurance

-10.0%

CN Market

Return vs Industry: 601601 matched the CN Insurance industry which returned -21% over the past year.

Return vs Market: 601601 underperformed the CN Market which returned -8.7% over the past year.


Shareholder returns

601601IndustryMarket
7 Day-1.2%-0.4%-2.4%
30 Day-11.8%-15.1%-9.8%
90 Day-28.7%-24.5%-7.5%
1 Year-18.6%-20.7%-21.3%-23.2%-8.5%-10.0%
3 Year10.8%3.3%-0.2%-7.4%-13.5%-17.0%
5 Year-8.6%-19.4%-9.7%-19.1%-21.4%-26.2%

Price Volatility Vs. Market

How volatile is China Pacific Insurance (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Pacific Insurance (Group) undervalued compared to its fair value and its price relative to the market?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 601601 (CN¥27.95) is trading below our estimate of fair value (CN¥43.57)

Significantly Below Fair Value: 601601 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 601601 is good value based on its PE Ratio (9.1x) compared to the Insurance industry average (9.6x).

PE vs Market: 601601 is good value based on its PE Ratio (9.1x) compared to the CN market (32x).


Price to Earnings Growth Ratio

PEG Ratio: 601601 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: 601601 is overvalued based on its PB Ratio (1.4x) compared to the XA Insurance industry average (0.9x).


Next Steps

Future Growth

How is China Pacific Insurance (Group) forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601601's forecast earnings growth (6.4% per year) is above the savings rate (3.2%).

Earnings vs Market: 601601's earnings (6.4% per year) are forecast to grow slower than the CN market (21% per year).

High Growth Earnings: 601601's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601601's revenue (1.2% per year) is forecast to grow slower than the CN market (15.7% per year).

High Growth Revenue: 601601's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 601601's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has China Pacific Insurance (Group) performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601601 has high quality earnings.

Growing Profit Margin: 601601's current net profit margins (7.2%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 601601's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: 601601's earnings growth over the past year (54%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: 601601 earnings growth over the past year (54%) exceeded the Insurance industry 8.9%.


Return on Equity

High ROE: 601601's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is China Pacific Insurance (Group)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 601601 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 601601's debt is covered by short term assets (assets are 1.8x debt).


Financial Institutions Analysis

Asset Level: 601601's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 601601 has a sufficient allowance for bad loans.

Low Risk Liabilities: 601601 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 601601 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 601601 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 601601 has an appropriate level of bad loans.


Next Steps

Dividend

What is China Pacific Insurance (Group)'s current dividend yield, its reliability and sustainability?

4.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 601601's dividend (4.31%) is higher than the bottom 25% of dividend payers in the CN market (0.46%).

High Dividend: 601601's dividend (4.31%) is in the top 25% of dividend payers in the CN market (2.04%)


Stability and Growth of Payments

Stable Dividend: 601601's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601601's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), 601601's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601601's dividends in 3 years are forecast to be well covered by earnings (48.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Fan Fu (55yo)

0.083

Tenure

Mr. Fan Fu serves as President at China Pacific Insurance (Group) Co., Ltd. since March 2020. He has been Director and Vice President of International Group and concurrently the Chairman of Shanghai SA sin ...


Leadership Team

NamePositionTenureCompensationOwnership
Fan Fu
President & Director0.083yrno datano data
Yuanhan Zhang
Chief Actuary & CFO1.08yrsCN¥4.39mno data
Benjamin Deng
Chief Investment Officer1.33yrsCN¥406.00kno data
Guoqiang Rong
Chief Technology Officer1.25yrsno datano data
Yanyan Zhang
IR contactsno datano datano data
Weidong Zhang
Chief Risk & Compliance Officer and General Counsel3.83yrsCN¥2.13mno data
Wei Chen
Chief Internal Auditor & Chief Auditing Officer8.58yrsCN¥2.56m0.00044% CN¥1.0m
Yanhong Pan
Executive Vice President6.33yrsCN¥2.54m0.0013% CN¥3.0m

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: 601601's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ka Sze Lee
Independent Non-Executive Director4.42yrsCN¥250.00kno data
Qingwei Kong
Chairman of the Board2.83yrsCN¥1.70mno data
Junhao Wu
Non-Executive Director7.75yrsno datano data
Xiaoning Sun
Non-Executive Director6.75yrsno datano data
Shanwen Gao
Independent Non-Executive Director5.67yrsCN¥650.00kno data
Tayu Wang
Non-Executive Director2.83yrsCN¥550.00kno data
Xiangqing Kong
Non-Executive Director2.83yrsCN¥550.00kno data
Yonghong Zhu
Chairman of the Board of Supervisors1.75yrsno datano data
Dinan Huang
Non-Executive Vice Chairman1.25yrsno datano data
Tyng Yih Lam
Independent Non-Executive Director0.75yrno datano data

2.8yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 601601's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Pacific Insurance (Group) Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Pacific Insurance (Group) Co., Ltd.
  • Ticker: 601601
  • Exchange: SHSE
  • Founded: 1991
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: CN¥237.069b
  • Shares outstanding: 9.06b
  • Website: https://www.cpic.com.cn

Number of Employees


Location

  • China Pacific Insurance (Group) Co., Ltd.
  • 1 South Zhongshan Road
  • Huangpu District
  • Shanghai
  • 200010
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601601SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2007
601601XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2007
2601SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2009
75CDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2009
CHPX.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDDec 2009
2601SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2009
2601SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2009
CHPX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2011

Biography

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People’s Republic of China. The company operates through Life Insurance, Property and Casualty Insurance, and Other Businesses segments. It offers insurance products, including life insurance, health insurance, and accident insurance, etc.; reinsurance services; property insurance; liability insurance; agricultural insurance; credit and guarantee insurance; short-term health insurance and casualty insurance; and insurance funds investment services, as well as individual and group pension and annuity products. The company also engages in the management of capital funds; outsourcing of asset management; provision of consulting services relating to asset management; and other asset management activities. In addition, it is involved in the property management and real estate; and hotel operations. The company sells its products directly, as well as through insurance agents and brokers, bancassurance, telemarketing, Internet Sales, and cross-selling. The company was founded in 1991 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 17:40
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.