China Reinsurance (Group) Corporation

SEHK:1508 Stock Report

Market Cap: HK$36.5b

China Reinsurance (Group) Valuation

Is 1508 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1508 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1508 (HK$0.86) is trading below our estimate of fair value (HK$1.07)

Significantly Below Fair Value: 1508 is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1508?

Key metric: As 1508 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1508. This is calculated by dividing 1508's market cap by their current earnings.
What is 1508's PE Ratio?
PE Ratio3.6x
EarningsCN¥9.37b
Market CapCN¥34.13b

Price to Earnings Ratio vs Peers

How does 1508's PE Ratio compare to its peers?

The above table shows the PE ratio for 1508 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average6x
6963 Sunshine Insurance Group
7.6x17.0%HK$32.5b
966 China Taiping Insurance Holdings
7.6x12.6%HK$45.8b
6060 ZhongAn Online P & C Insurance
4.6x-53.5%HK$19.2b
1339 People's Insurance Company (Group) of China
4.1x-1.8%HK$312.2b
1508 China Reinsurance (Group)
3.7x-8.1%HK$36.5b

Price-To-Earnings vs Peers: 1508 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (6x).


Price to Earnings Ratio vs Industry

How does 1508's PE Ratio compare vs other companies in the Asian Insurance Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1508 3.6xIndustry Avg. 10.9xNo. of Companies45PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1508 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the Asian Insurance industry average (10.8x).


Price to Earnings Ratio vs Fair Ratio

What is 1508's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1508 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.6x
Fair PE Ratio5.9x

Price-To-Earnings vs Fair Ratio: 1508 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (5.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1508 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$0.84
HK$0.82
-2.0%
13.8%HK$0.98HK$0.70n/a4
Nov ’25HK$0.94
HK$0.82
-12.7%
13.0%HK$1.00HK$0.71n/a5
Oct ’25HK$0.84
HK$0.77
-8.7%
17.2%HK$1.00HK$0.60n/a5
Sep ’25HK$0.71
HK$0.71
-0.02%
24.4%HK$1.00HK$0.53n/a5
Aug ’25HK$0.54
HK$0.66
+22.6%
17.5%HK$0.80HK$0.52n/a5
Jul ’25HK$0.57
HK$0.64
+11.7%
19.1%HK$0.80HK$0.48n/a6
Jun ’25HK$0.57
HK$0.64
+11.7%
19.1%HK$0.80HK$0.48n/a6
May ’25HK$0.56
HK$0.64
+13.7%
19.1%HK$0.80HK$0.48n/a6
Apr ’25HK$0.52
HK$0.65
+24.1%
18.0%HK$0.80HK$0.48n/a6
Mar ’25HK$0.46
HK$0.62
+34.2%
17.3%HK$0.77HK$0.47n/a5
Feb ’25HK$0.42
HK$0.63
+49.9%
18.2%HK$0.76HK$0.47n/a4
Jan ’25HK$0.46
HK$0.64
+41.6%
15.3%HK$0.77HK$0.52n/a4
Dec ’24HK$0.44
HK$0.63
+43.3%
15.2%HK$0.75HK$0.51HK$0.834
Nov ’24HK$0.45
HK$0.63
+41.7%
15.2%HK$0.75HK$0.51HK$0.944
Oct ’24HK$0.47
HK$0.66
+38.1%
14.9%HK$0.75HK$0.51HK$0.845
Sep ’24HK$0.51
HK$0.65
+28.1%
14.1%HK$0.75HK$0.53HK$0.715
Aug ’24HK$0.55
HK$0.63
+15.1%
15.4%HK$0.76HK$0.52HK$0.546
Jul ’24HK$0.53
HK$0.63
+19.5%
15.4%HK$0.76HK$0.52HK$0.576
Jun ’24HK$0.55
HK$0.66
+20.8%
16.1%HK$0.80HK$0.55HK$0.576
May ’24HK$0.60
HK$0.66
+10.8%
16.1%HK$0.80HK$0.55HK$0.566
Apr ’24HK$0.55
HK$0.67
+22.5%
16.3%HK$0.80HK$0.55HK$0.525
Mar ’24HK$0.56
HK$0.67
+19.7%
22.6%HK$0.90HK$0.51HK$0.466
Feb ’24HK$0.59
HK$0.68
+15.1%
23.4%HK$0.92HK$0.50HK$0.426
Jan ’24HK$0.49
HK$0.67
+34.5%
19.9%HK$0.87HK$0.49HK$0.466
Dec ’23HK$0.51
HK$0.67
+30.5%
19.9%HK$0.87HK$0.49HK$0.446

Analyst Forecast: Target price is lower than the current share price.


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