SEHK:1339

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.


Snowflake Analysis

Undervalued with solid 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: 1339's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1339

2.3%

HK Insurance

2.7%

HK Market


1 Year Return

-25.4%

1339

-19.4%

HK Insurance

-19.8%

HK Market

Return vs Industry: 1339 underperformed the Hong Kong Insurance industry which returned -21.5% over the past year.

Return vs Market: 1339 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

1339IndustryMarket
7 Day0%2.3%2.7%
30 Day-7.7%-10.6%-7.2%
90 Day-23.4%-19.0%-12.1%
1 Year-24.2%-25.4%-17.8%-19.4%-16.9%-19.8%
3 Year-17.6%-21.0%23.0%16.5%0.9%-9.3%
5 Year-47.8%-50.6%-8.7%-16.2%-12.6%-26.7%

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

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: 1339 (HK$2.53) is trading below our estimate of fair value (HK$6.92)

Significantly Below Fair Value: 1339 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1339 is good value based on its PE Ratio (4.6x) compared to the Insurance industry average (6.7x).

PE vs Market: 1339 is good value based on its PE Ratio (4.6x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1339's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1339 is good value based on its PB Ratio (0.6x) compared to the HK Insurance industry average (0.9x).


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?

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1339's earnings are forecast to decline over the next 3 years (-0.08% per year).

Earnings vs Market: 1339's earnings are forecast to decline over the next 3 years (-0.08% per year).

High Growth Earnings: 1339's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1339's revenue (3.7% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 1339's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1339's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

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

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1339 has high quality earnings.

Growing Profit Margin: 1339's current net profit margins (4%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 1339's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: 1339's earnings growth over the past year (71.4%) exceeds its 5-year average (2.1% per year).

Earnings vs Industry: 1339 earnings growth over the past year (71.4%) exceeded the Insurance industry 61%.


Return on Equity

High ROE: 1339's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is People's Insurance Company (Group) of China's financial position?


Financial Position Analysis

Short Term Liabilities: 1339's short term assets (CN¥175.3B) exceed its short term liabilities (CN¥81.4B).

Long Term Liabilities: 1339's short term assets (CN¥175.3B) do not cover its long term liabilities (CN¥804.5B).


Debt to Equity History and Analysis

Debt Level: 1339's debt to equity ratio (43.3%) is considered high.

Reducing Debt: 1339's debt to equity ratio has reduced from 66.9% to 43.3% over the past 5 years.

Debt Coverage: 1339's debt is well covered by operating cash flow (34.4%).

Interest Coverage: 1339's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

5.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1339's dividend (5.01%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 1339's dividend (5.01%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1339 has been paying a dividend for less than 10 years.

Growing Dividend: 1339's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), 1339's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1339's dividends in 3 years are forecast to be well covered by earnings (30.9% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

People's Insurance Company (Group) of China has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Jianmin Miao
Executive Chairman2.25yrsCN¥868.60kno data
Houjie Zhou
CFO & Financial Controller10.25yrsCN¥1.89mno data
Zhuyong Li
VP, Compliance Officer1.33yrsCN¥783.20kno data
Jun Zhao
Chief Information Technology Officer & GM of the Information Technology Department12.58yrsCN¥1.89mno data
Yiqun Xie
VP & Executive Director2.5yrsCN¥794.70kno data
Kesheng Han
Assistant to the President10.08yrsCN¥1.89mno data
Chen Lu
Business Director & Senior Economistno dataCN¥1.65mno data
Qing feng Shi
Head of the Discipline Inspection & Supervision Team of the People's Insurance Group1.75yrsCN¥256.30kno data
Zhou Shuqun
President of PICC P&Cno datano datano data
Sau Mei Ng
Company Secretary0.25yrno datano data

5.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 1339's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianmin Miao
Executive Chairman2.25yrsCN¥868.60kno data
Yiqun Xie
VP & Executive Director2.5yrsCN¥794.70kno data
Dajun Wang
GM of Risk Management Department & Employee Representative Supervisor4.08yrsno datano data
Kin Yu Luk
Independent Non-Executive Director4.75yrsno datano data
Yixiang Lin
Independent Non-Executive Director4.58yrsCN¥300.00kno data
Yongxian Xu
Shareholder Representative Supervisor10.58yrsCN¥790.00kno data
Liangbo Huang
Chairman of the Board of Supervisors0.25yrno datano data
Yuqin Cheng
Non-Executive Director4.5yrsno datano data
Wuzhao Chen
Independent Non-Executive Director3.08yrsCN¥300.00kno data
Xin Jing
Independent Supervisor3.08yrsno datano data

3.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 1339's board of directors are considered experienced (3.6 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 been diluted in the past year, with total shares outstanding growing by 3.9%.


Top Shareholders

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: 1339
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: HK$114.098b
  • 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 Analysis2020/04/08 13:04
End of Day Share Price2020/04/08 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.