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

Fundamentals

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


Market Performance


7 Day Return

-1.2%

1339

4.9%

HK Insurance

3.3%

HK Market


1 Year Return

-14.9%

1339

17.9%

HK Insurance

1.6%

HK Market

Return vs Industry: 1339 underperformed the Hong Kong Insurance industry which returned 17.9% over the past year.

Return vs Market: 1339 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1339IndustryMarket
7 Day-1.2%4.9%3.3%
30 Day-1.5%-0.08%-0.009%
90 Day-4.8%-6.1%-5.1%
1 Year-13.4%-14.9%20.2%17.9%5.3%1.6%
3 Year7.4%2.9%52.3%44.1%16.1%4.4%
5 Year5.9%0.3%75.2%60.3%20.4%0.3%

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

Undervalued: 1339 (HK$3.2) is trading below our estimate of fair value (HK$7.09)

Significantly Undervalued: 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 (6.8x) compared to the Insurance industry average (10.4x).

PE vs Market: 1339 is good value based on its PE Ratio (6.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1339 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 1339 is good value based on its PB Ratio (0.7x) compared to the HK Insurance industry average (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 14 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1339's forecast earnings growth (3.7% per year) is above the savings rate (2%).

Earnings vs Market: 1339's earnings (3.7% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1339's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1339's revenue (10.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1339's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1339's Return on Equity is forecast to be low in 3 years time (10.9%).


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


Past Earnings Growth Analysis

Earnings Trend: 1339's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: 1339's earnings growth over the past year (5.9%) exceeds its 5-year average (3.7% per year).

Earnings vs Industry: 1339 earnings growth over the past year (5.9%) exceeded the Insurance industry 2.7%.


Return on Equity

High ROE: 1339's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: 1339 has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: 1339's Return on Capital Employed has declined over the past 3 years.


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: 1339 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1339's debt is covered by short term assets (assets are 2.149650x debt).


Financial Institutions Analysis

Asset Level: 1339's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1339 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1339 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1339 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1339 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1339 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?

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.3%markettop25%6.3%industryaverage1.8%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1339's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1339's dividend (1.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1339 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1339 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%), 1339's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1339's dividends in 3 years are forecast to be well covered by earnings (19.2% 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?

9.7yrs

Average management tenure


CEO

Tao Bai (56yo)

1.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

9.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1339's management team is seasoned and experienced (9.7 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 1339's board of directors are not considered experienced ( 2.6 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

BuyCN¥33,048,03830 Jul 19
Capital Research and Management Company
EntityCompany
Shares9,984,000
Max PriceCN¥3.31
BuyCN¥24,256,21516 Jul 19
Capital Research and Management Company
EntityCompany
Shares7,616,000
Max PriceCN¥3.18
BuyCN¥38,872,84101 Jun 19
Capital Research and Management Company
EntityCompany
Shares12,619,000
Max PriceCN¥3.08
SellCN¥2,174,25107 Feb 19
BlackRock, Inc.
EntityCompany
Shares669,000
Max PriceCN¥3.25
BuyCN¥9,142,15506 Feb 19
BlackRock, Inc.
EntityCompany
Shares2,804,000
Max PriceCN¥3.26
SellCN¥1,689,34027 Nov 18
BlackRock, Inc.
EntityCompany
Shares495,422
Max PriceCN¥3.41

Ownership Breakdown


Management Team

  • Yiqun Xie (58yo)

    VP & Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥773.70k
  • Tao Li (53yo)

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

    • Tenure: 10.1yrs
    • Compensation: CN¥2.41m
  • Jianmin Miao (54yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: CN¥845.40k
  • Chaoying Zhuang (60yo)

    Deputy Editor & Senior Enterprise Risk Manager

    • Tenure: 0yrs
    • Compensation: CN¥448.90k
  • Kesheng Han (53yo)

    Assistant to the President

    • Tenure: 9.6yrs
    • Compensation: CN¥2.45m
  • Jun Zhao (58yo)

    Chief Information Technology Officer & GM of the Information Technology Department

    • Tenure: 12.1yrs
    • Compensation: CN¥2.45m
  • Houjie Zhou (54yo)

    CFO & Financial Controller

    • Tenure: 9.8yrs
    • Compensation: CN¥2.41m
  • Zhigang Tang (55yo)

    VP, Executive Director & Secretary of the Board

    • Tenure: 1.9yrs
    • Compensation: CN¥768.20k
  • Zhuyong Li (46yo)

    VP, Compliance Officer & Chief Risk Officer

    • Tenure: 0.8yrs
    • Compensation: CN¥1.64m
  • Tao Bai (56yo)

    Vice Chairman & President

    • Tenure: 1.3yrs
    • Compensation: CN¥748.29k

Board Members

  • Yiqun Xie (58yo)

    VP & Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥773.70k
  • Fan Lin (59yo)

    Chairman of the Board of Supervisors

    • Tenure: 7.6yrs
    • Compensation: CN¥945.00k
  • Jianmin Miao (54yo)

    Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: CN¥845.40k
  • Yixiang Lin (55yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥300.00k
  • Yongxian Xu (55yo)

    Shareholder Representative Supervisor

    • Tenure: 10.1yrs
    • Compensation: CN¥790.00k
  • Zhigang Tang (55yo)

    VP, Executive Director & Secretary of the Board

    • Tenure: 1.9yrs
    • Compensation: CN¥768.20k
  • Dajun Wang (51yo)

    GM of Risk Management Department & Employee Representative Supervisor

    • Tenure: 3.6yrs
  • Tao Bai (56yo)

    Vice Chairman & President

    • Tenure: 1.3yrs
    • Compensation: CN¥748.29k
  • Wuzhao Chen (49yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥283.30k
  • Xin Jing (61yo)

    Independent Supervisor

    • Tenure: 2.6yrs

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$143.286b
  • 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
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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:48
End of Day Share Price2019/10/18 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.