DB:C53

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Very undervalued with proven track record and pays a dividend.


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

Stable Share Price: C53's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

C53

0.5%

DE Insurance

2.6%

DE Market


1 Year Return

-31.8%

C53

-6.5%

DE Insurance

8.1%

DE Market

Return vs Industry: C53 underperformed the German Insurance industry which returned -6.5% over the past year.

Return vs Market: C53 underperformed the German Market which returned 8.1% over the past year.


Shareholder returns

C53IndustryMarket
7 Day4.0%0.5%2.6%
30 Day-19.6%-3.0%0.7%
90 Day-9.3%11.1%11.5%
1 Year-26.8%-31.8%-1.3%-6.5%10.5%8.1%
3 Year-51.5%-57.6%23.4%7.4%6.4%-2.1%
5 Yearn/a54.3%22.4%15.2%-0.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C53 (€0.08) is trading below our estimate of fair value (€0.17)

Significantly Below Fair Value: C53 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: C53 is good value based on its PE Ratio (5.5x) compared to the DE Insurance industry average (11x).

PE vs Market: C53 is good value based on its PE Ratio (5.5x) compared to the German market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: C53 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: C53 is good value based on its PB Ratio (0.4x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is China Reinsurance (Group) forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C53's forecast earnings growth (10.7% per year) is above the savings rate (0.2%).

Earnings vs Market: C53's earnings (10.7% per year) are forecast to grow slower than the German market (24% per year).

High Growth Earnings: C53's earnings are forecast to grow, but not significantly.

Revenue vs Market: C53's revenue (9% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: C53's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C53's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

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

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C53 has high quality earnings.

Growing Profit Margin: C53's current net profit margins (4.2%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: C53's earnings have declined by 7.9% per year over the past 5 years.

Accelerating Growth: C53's earnings growth over the past year (62.2%) exceeds its 5-year average (-7.9% per year).

Earnings vs Industry: C53 earnings growth over the past year (62.2%) exceeded the Insurance industry -12.4%.


Return on Equity

High ROE: C53's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: C53's short term assets (CN¥155.7B) do not cover its short term liabilities (CN¥157.5B).

Long Term Liabilities: C53's short term assets (CN¥155.7B) exceed its long term liabilities (CN¥142.2B).


Debt to Equity History and Analysis

Debt Level: C53's debt to equity ratio (46.8%) is considered high.

Reducing Debt: C53's debt to equity ratio has increased from 4.2% to 46.8% over the past 5 years.

Debt Coverage: C53's debt is well covered by operating cash flow (37.2%).

Interest Coverage: C53's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: C53's dividend (5.63%) is higher than the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: C53's dividend (5.63%) is in the top 25% of dividend payers in the German market (3.78%)


Stability and Growth of Payments

Stable Dividend: C53 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: C53 has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), C53's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C53's dividends in 3 years are forecast to be well covered by earnings (34.4% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Linjiang Yuan
Executive Chairman4.25yrsCN¥821.00kno data
Chunlei He
Executive Vice Chairman of the Board & President1.92yrsCN¥820.00kno data
Xiaobing Ren
VP, Compliance Controller12.83yrsCN¥748.00kno data
Meipan Tian
Chief Actuary7.67yrsno datano data
Xiaoyun Zhu
Joint Company Secretary3.33yrsno datano data
Sau Mei Ng
Joint Company Secretary3.33yrsno datano data

3.7yrs

Average Tenure

49.5yo

Average Age

Experienced Management: C53's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Linjiang Yuan
Executive Chairman4.25yrsCN¥821.00kno data
Chunlei He
Executive Vice Chairman of the Board & President1.92yrsCN¥820.00kno data
Xiaobing Ren
VP, Compliance Controller12.83yrsCN¥748.00kno data
Kam Sheung Mok
Independent Non-Executive Director5yrsCN¥250.00kno data
Xiaoya Wang
Non-Executive Director1yrno datano data
Xiuli Lu
Non-Executive Director5.67yrsno datano data
Yansu Hao
Independent Non-Executive Director5.67yrsCN¥250.00kno data
Sanxi Li
Independent Non-Executive Director5.67yrsCN¥250.00kno data
Yong Zhu
Shareholder Representative Supervisor5.67yrsno datano data
Xiaopeng Liu
Non-Executive Director0.75yrno datano data
Bo Jiang
Independent Non-Executive Director1.67yrsCN¥250.00kno data
Ning Wen
Non-Executive Director1.42yrsno datano data

4.6yrs

Average Tenure

56yo

Average Age

Experienced Board: C53's board of directors are considered experienced (4.6 years average tenure).


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 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$36.957b
  • Listing Market Cap: HK$4.046b
  • Shares outstanding: 42.48b
  • Website: https://www.chinare.com.cn

Number of Employees


Location

  • China Reinsurance (Group) Corporation
  • China Reinsurance Building
  • No. 11 Jinrong Avenue
  • Beijing
  • Beijing Province
  • 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
8326SHSC (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. It operates through Property and Casualty Rei ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 20:39
End of Day Share Price2020/08/07 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.