People's Insurance Company (Group) of China Full Year 2023 Earnings: Misses Expectations

People's Insurance Company (Group) of China (HKG:1339) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥525.3b (up 6.6% from FY 2022).
• Net income: CN¥22.3b (down 12% from FY 2022).
• Profit margin: 4.2% (down from 5.2% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: CN¥0.51 (down from CN¥0.57 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

People's Insurance Company (Group) of China Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 11%.

The primary driver behind last 12 months revenue was the Non-Life Insurance segment contributing a total revenue of CN¥475.5b (91% of total revenue). Notably, cost of sales worth CN¥479.4b amounted to 91% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling CN¥14.8b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 1339's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Insurance industry in Hong Kong.

Performance of the Hong Kong Insurance industry.

The company's shares are up 2.8% from a week ago.

Risk Analysis

It is worth noting though that we have found 1 warning sign for People's Insurance Company (Group) of China that you need to take into consideration.

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