DB:NCL

Stock Analysis Report

New China Life Insurance

Executive Summary

New China Life Insurance Company Ltd. provides life insurance products and services to individuals and institutions in the People’s Republic of China.

Rewards

Trading at 35.1% below its fair value

Earnings are forecast to grow 3.19% per year

Earnings grew by 64.4% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has New China Life Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NCL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

NCL

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

18.0%

NCL

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: NCL underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: NCL exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

NCLIndustryMarket
7 Day0%0.4%0.07%
30 Day0.5%0.3%1.4%
90 Day8.8%4.3%6.1%
1 Year20.9%18.0%32.7%27.1%18.4%14.8%
3 Year-7.2%-12.4%64.7%44.8%17.4%7.0%
5 Year-12.7%-19.1%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is New China Life Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is New China Life Insurance undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCL (€3.92) is trading below our estimate of fair value (€6.04)

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


Price To Earnings Ratio

PE vs Industry: NCL is good value based on its PE Ratio (11.8x) compared to the Insurance industry average (12x).

PE vs Market: NCL is good value based on its PE Ratio (12x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: NCL is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: NCL is overvalued based on its PB Ratio (2x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is New China Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCL's forecast earnings growth (3.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: NCL's earnings (3.2% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: NCL's revenue (9.8% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: NCL's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NCL's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has New China Life Insurance performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCL has high quality earnings.

Growing Profit Margin: NCL's current net profit margins (8.2%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: NCL's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: NCL's earnings growth over the past year (64.4%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: NCL earnings growth over the past year (64.4%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: NCL's Return on Equity (16.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New China Life Insurance'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: NCL has a low level of unsold assets or inventory.

Debt Coverage by Assets: NCL's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: NCL's level of assets compared to its equity is moderate.

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

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

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

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

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


Next Steps

Dividend

What is New China Life Insurance's current dividend yield, its reliability and sustainability?

1.54%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: NCL's dividend (1.51%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: NCL's dividend (1.51%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

Growing Dividend: NCL's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), NCL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NCL's dividends in 3 years are forecast to be well covered by earnings (28.9% payout ratio).


Next Steps

Management

What is the CEO of New China Life Insurance's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Quan Li (55yo)

0.4yrs

Tenure

0

Mr. Quan Li has been the President and Chief Executive Officer of New China Life Ins Co. Ltd. since August 07, 2019 and serves as Executive Director. Mr. Li serves as the President and Chief Executive Offi ...


Management Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: NCL's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: NCL's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€6,698,25509 Apr 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares1,380,000
Max Price€4.85

Ownership Breakdown

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


Management Team

  • Yigong Liu (60yo)

    Vice President

    • Tenure: 14.8yrs
  • Yuan Li (57yo)

    Vice President

    • Tenure: 6.9yrs
  • Xingfeng Gong (49yo)

    VP, Chief Actuary

    • Tenure: 2.8yrs
  • Quan Li (55yo)

    CEO, President & Executive Director

    • Tenure: 0.4yrs
  • Zhongzhu Wang (52yo)

    GM of Discipline Inspection & Supervision Office and Employee Representative Supervisor

    • Tenure: 3.8yrs
  • Zongjian Li (59yo)

    Executive Director & VP

    • Tenure: 3.8yrs
  • Zheng Yang (49yo)

    VP & CFO

    • Tenure: 2.9yrs
  • Kenneth Lee

    Joint Company Secretary

    • Tenure: 1.4yrs

Board Members

  • Chengran Wang (60yo)

    Chairman of Supervisory Board

    • Tenure: 5.5yrs
  • Aimin Hu (46yo)

    Non-Executive Director

    • Tenure: 3.6yrs
  • Quan Li (55yo)

    CEO, President & Executive Director

    • Tenure: 0.4yrs
  • Haoling Liu (47yo)

    Chairman of the Board

    • Tenure: 0.3yrs
  • Zhongzhu Wang (52yo)

    GM of Discipline Inspection & Supervision Office and Employee Representative Supervisor

    • Tenure: 3.8yrs
  • Wei Zheng (45yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
  • Xianglu Li (70yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
  • Zongjian Li (59yo)

    Executive Director & VP

    • Tenure: 3.8yrs
  • Lie Cheng (64yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
  • Lianhua Xiong (52yo)

    Non-Executive Director

    • Tenure: 2.5yrs

Company Information

New China Life Insurance Company Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New China Life Insurance Company Ltd.
  • Ticker: NCL
  • Exchange: DB
  • Founded: 1996
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: CN¥136.059b
  • Listing Market Cap: CN¥17.882b
  • Shares outstanding: 3.12b
  • Website: https://www.newchinalife.com

Number of Employees


Location

  • New China Life Insurance Company Ltd.
  • New China Insurance Tower
  • A12 Jianguomenwai Avenue
  • Beijing
  • 100022
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1336SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2011
NCLDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2011
1336SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2011
1336SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2011
601336SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2011
601336XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2011

Biography

New China Life Insurance Company Ltd. provides life insurance products and services to individuals and institutions in the People’s Republic of China. It operates through three segments: Individual Insurance Business, Group Insurance Business, and Other Business. The company also offers asset management, training, electronic commerce, and medical services; and invests in, develops, leases, and manages real estate properties. In addition, it is involved in the technological development and project investment activities. New China Life Insurance Company Ltd. was founded in 1996 and is headquartered in Beijing, 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 Analysis2020/01/19 21:28
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.