DB:PIR

Stock Analysis Report

People's Insurance Company (Group) of China

Executive Summary

The People’s Insurance Company (Group) of China Limited, an investment holding company, primarily engages in the insurance business in the People’s Republic of China.

Rewards

Trading at 61.8% below its fair value

Earnings are forecast to grow 2.38% per year

Earnings have grown 3.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

PIR

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

7.6%

PIR

27.1%

DE Insurance

14.8%

DE Market

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

Return vs Market: PIR underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

PIRIndustryMarket
7 Day-3.7%0.4%0.07%
30 Day0.5%0.3%1.4%
90 Day2.8%4.3%6.1%
1 Year9.6%7.6%32.7%27.1%18.4%14.8%
3 Yearn/a64.7%44.8%17.4%7.0%
5 Yearn/a95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is People's Insurance Company (Group) of China 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: PIR (€0.37) is trading below our estimate of fair value (€0.96)

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


Price To Earnings Ratio

PE vs Industry: PIR is good value based on its PE Ratio (6.9x) compared to the Insurance industry average (11.9x).

PE vs Market: PIR is good value based on its PE Ratio (6.9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: PIR is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: PIR is good value based on its PB Ratio (0.7x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is People's Insurance Company (Group) of China forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIR's forecast earnings growth (2.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: PIR's earnings (2.4% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: PIR's revenue (10.8% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: PIR's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PIR's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has People's Insurance Company (Group) of China performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIR has high quality earnings.

Growing Profit Margin: PIR's current net profit margins (3.6%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: PIR's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: PIR's earnings growth over the past year (5.9%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: PIR earnings growth over the past year (5.9%) underperformed the Insurance industry 7.8%.


Return on Equity

High ROE: PIR's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is People's Insurance Company (Group) of China'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: PIR has a low level of unsold assets or inventory.

Debt Coverage by Assets: PIR's debt is covered by short term assets (assets are 2.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: PIR's dividend (1.57%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: PIR's dividend (1.57%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

Growing Dividend: PIR has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.8%), PIR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PIR's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Tao Bai (56yo)

1.5yrs

Tenure

CN¥748,286

Compensation

Dr. Tao Bai, Ph. D., has been President of People's Insurance Company (Group) of China Ltd. since July 19, 2018 and its Vice Chairman and Executive Director since OCtober 23, 2018 and September 11, 2018 re ...


CEO Compensation Analysis

Compensation vs Market: Tao's total compensation ($USD108.61K) is below average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Insufficient data to compare Tao's compensation with company performance.


Management Age and Tenure

9.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: PIR's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

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


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€263,04114 Nov 19
BlackRock, Inc.
EntityCompany
Shares691,000
Max Price€0.38
Buy€3,800,94230 Jul 19
Capital Research and Management Company
EntityCompany
Shares9,984,000
Max Price€0.38
Buy€2,753,97516 Jul 19
Capital Research and Management Company
EntityCompany
Shares7,616,000
Max Price€0.36
Buy€4,448,35301 Jun 19
Capital Research and Management Company
EntityCompany
Shares12,619,000
Max Price€0.35
Sell€242,43207 Feb 19
BlackRock, Inc.
EntityCompany
Shares669,000
Max Price€0.36
Buy€1,014,68406 Feb 19
BlackRock, Inc.
EntityCompany
Shares2,804,000
Max Price€0.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Management Team

  • Yiqun Xie (58yo)

    VP & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥773.70k
  • Tao Li (53yo)

    GM - Secretariat of Board of Directors & Board of Supervisors and Secretary to Board of Directors

    • Tenure: 10.3yrs
    • Compensation: CN¥2.41m
  • Jianmin Miao (54yo)

    Chairman of the Board

    • Tenure: 2yrs
    • Compensation: CN¥845.40k
  • Chaoying Zhuang (60yo)

    Deputy Editor & Senior Enterprise Risk Manager

    • Compensation: CN¥448.90k
  • Kesheng Han (53yo)

    Assistant to the President

    • Tenure: 9.8yrs
    • Compensation: CN¥2.45m
  • Jun Zhao (58yo)

    Chief Information Technology Officer & GM of the Information Technology Department

    • Tenure: 12.3yrs
    • Compensation: CN¥2.45m
  • Houjie Zhou (54yo)

    CFO & Financial Controller

    • Tenure: 10yrs
    • Compensation: CN¥2.41m
  • Zhigang Tang (55yo)

    VP, Executive Director & Secretary of the Board

    • Tenure: 2.2yrs
    • Compensation: CN¥768.20k
  • Zhuyong Li (46yo)

    VP, Compliance Officer & Chief Risk Officer

    • Tenure: 1.1yrs
    • Compensation: CN¥1.64m
  • Tao Bai (56yo)

    Vice Chairman & President

    • Tenure: 1.5yrs
    • Compensation: CN¥748.29k

Board Members

  • Yiqun Xie (58yo)

    VP & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥773.70k
  • Jianmin Miao (54yo)

    Chairman of the Board

    • Tenure: 2yrs
    • Compensation: CN¥845.40k
  • Yixiang Lin (55yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥300.00k
  • Yongxian Xu (55yo)

    Shareholder Representative Supervisor

    • Tenure: 10.3yrs
    • Compensation: CN¥790.00k
  • Zhigang Tang (55yo)

    VP, Executive Director & Secretary of the Board

    • Tenure: 2.2yrs
    • Compensation: CN¥768.20k
  • Liangbo Huang (53yo)

    Chairman of the Board of Supervisors

    • Dajun Wang (51yo)

      GM of Risk Management Department & Employee Representative Supervisor

      • Tenure: 3.8yrs
    • Tao Bai (56yo)

      Vice Chairman & President

      • Tenure: 1.5yrs
      • Compensation: CN¥748.29k
    • Wuzhao Chen (49yo)

      Independent Non-Executive Director

      • Tenure: 2.8yrs
      • Compensation: CN¥283.30k
    • Xin Jing (61yo)

      Independent Supervisor

      • Tenure: 2.8yrs

    Company Information

    The People's Insurance Company (Group) of China Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: The People's Insurance Company (Group) of China Limited
    • Ticker: PIR
    • Exchange: DB
    • Founded: 1949
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: HK$145.497b
    • Listing Market Cap: HK$16.886b
    • Shares outstanding: 44.22b
    • Website: https://www.picc.com

    Number of Employees


    Location

    • The People's Insurance Company (Group) of China Limited
    • No. 88 West Chang’an Avenue
    • Xi Cheng District
    • Beijing
    • 100031
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1339SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2012
    PIRDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2012
    1339SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2012
    PINX.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2012
    1339SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2012
    PINX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2013
    601319SHSE (Shanghai Stock Exchange)A CNY1CNCNYNov 2018
    601319XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)A CNY1CNCNYNov 2018

    Biography

    The People’s Insurance Company (Group) of China Limited, an investment holding company, primarily engages in the insurance business in the People’s Republic of China. It operates through Non-Life Insurance, Life Insurance, Health Insurance, Asset Management, and Others segments. The company offers property and casualty insurance products, including motor vehicle, commercial property, liability, credit, accidental injury and health, cargo, agricultural, and other insurance products. It also provides life insurance products comprising general life and health insurance, participating life insurance, universal life insurance, and accident insurance; and health insurance products, such as illness, medical, disability losses, nursing care, accidental injury, and participating endowment insurance products. In addition, the company engages in asset management, agent, reinsurance brokerage, claim handling agency, and Internet finance activities. The People's Insurance Company (Group) of China Limited was founded in 1949 and is based 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 21:30
    End of Day Share Price2020/01/17 00:00
    Earnings2019/06/30
    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.