DB:C53

Stock Analysis Report

China Reinsurance (Group)

Executive Summary

China Reinsurance (Group) Corporation, together with its subsidiaries, operates as a reinsurance company in the People's Republic of China and internationally.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

DB:C53

0.5%

DE Insurance

-0.7%

DE Market


1 Year Return

-13.2%

DB:C53

21.2%

DE Insurance

-7.6%

DE Market

C53 underperformed the Insurance industry which returned 19% over the past year.

C53 underperformed the Market in Germany which returned -8.5% over the past year.


Share holder returns

C53IndustryMarket
7 Day2.1%0.5%-0.7%
30 Day0%2.0%-0.5%
90 Day-16.2%2.1%-3.8%
1 Year-10.8%-13.2%26.5%21.2%-4.6%-7.6%
3 Year-21.7%-28.9%85.4%63.0%18.5%8.3%
5 Yearn/a101.2%61.1%28.9%11.1%

Price Volatility Vs. Market

How volatile is China Reinsurance (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 Reinsurance (Group) undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Reinsurance (Group)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

China Reinsurance (Group)'s share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Reinsurance (Group) is overvalued based on earnings compared to the DE Insurance industry average.

China Reinsurance (Group) is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

China Reinsurance (Group) is good value based on expected growth next year.


Price Based on Value of Assets

China Reinsurance (Group) is good value based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is China Reinsurance (Group) expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Reinsurance (Group)'s revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).

China Reinsurance (Group)'s earnings are expected to grow significantly at over 20% yearly.

China Reinsurance (Group)'s revenue growth is expected to exceed the Germany market average.

China Reinsurance (Group)'s earnings growth is expected to exceed the Germany market average.

China Reinsurance (Group)'s earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Reinsurance (Group) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-6.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Reinsurance (Group)'s year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

China Reinsurance (Group)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.

China Reinsurance (Group)'s 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.


Return on Equity

China Reinsurance (Group) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Reinsurance (Group) used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

China Reinsurance (Group)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Reinsurance (Group)'s financial position?


Financial Position Analysis

China Reinsurance (Group) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Reinsurance (Group)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Reinsurance (Group)'s level of debt (43%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (7.6% vs 43% today).

Debt is not well covered by operating cash flow (14.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

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

4.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Reinsurance (Group)'s pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.49%).

China Reinsurance (Group)'s dividend is below the markets top 25% of dividend payers in Germany (3.92%).

China Reinsurance (Group) has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

China Reinsurance (Group) has only been paying a dividend for 3 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of China Reinsurance (Group)'s salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

China Reinsurance (Group) has no CEO, or we have no data on them.


Management Age and Tenure

2.6yrs

Average Tenure

48.5yo

Average Age

The tenure for the China Reinsurance (Group) management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

55.5yo

Average Age

The tenure for the China Reinsurance (Group) board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Buy€102,21918 Oct 18
BlackRock, Inc.
EntityCompany
Shares666,000
Max Price€0.15

Ownership Breakdown


Management Team

  • Linjiang Yuan (56yo)

    Chairman of the Board

    • Compensation: CN¥791.00k
  • Sau Mei Ng (42yo)

    Joint Company Secretary

    • Tenure: 2.3yrs
  • Xiaobing Ren (52yo)

    VP, Compliance Controller

    • Tenure: 4.1yrs
    • Compensation: CN¥718.00k
  • Meipan Tian (45yo)

    Chief Actuary

    • Tenure: 6.6yrs
  • Chunlei He (54yo)

    President & Vice Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: CN¥726.00k
  • Xiaoyun Zhu (44yo)

    Board Secretary

    • Tenure: 2.3yrs

Board Members

  • Linjiang Yuan (56yo)

    Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: CN¥791.00k
  • Bo Jiang (64yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Sanxi Li (55yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥250.00k
  • Hong Zhang (55yo)

    Chairman of the Board of Supervisors

    • Tenure: 2.4yrs
    • Compensation: CN¥788.00k
  • Yansu Hao (61yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥250.00k
  • Xiuli Lu (55yo)

    Non-Executive Director

    • Tenure: 4.6yrs
  • Xiaobing Ren (52yo)

    VP, Compliance Controller

    • Tenure: 11.8yrs
    • Compensation: CN¥718.00k
  • Chunlei He (54yo)

    President & Vice Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: CN¥726.00k
  • Kam Sheung Mok (60yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥250.00k
  • Ning Wen (57yo)

    Non-Executive Director

    • Tenure: 0.3yrs

Company Information

China Reinsurance (Group) Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Reinsurance (Group) Corporation
  • Ticker: C53
  • Exchange: DB
  • Founded: 1949
  • Industry: reinsurance
  • Sector: insurance
  • Market Cap: HK$58.622b
  • Listing Market Cap: HK$6.693b
  • Shares outstanding: 42.48b
  • Website: Click here

Number of Employees


Location

  • China Reinsurance (Group) Corporation
  • China Re Building
  • No. 11 Jinrong Avenue
  • Beijing
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1508SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2015
C53DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2015
1508SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2015
1508SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2015

Biography

China Reinsurance (Group) Corporation, together with its subsidiaries, operates as a reinsurance company in the People's Republic of China and internationally. The company operates through Property and Cas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 21:53
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.