SEHK:2601

Stock Analysis Report

China Pacific Insurance (Group)

Executive Summary

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People’s Republic of China.

Snowflake

Fundamentals

Solid track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.0%

2601

3.4%

HK Insurance

2.9%

HK Market


1 Year Return

4.2%

2601

16.5%

HK Insurance

0.7%

HK Market

Return vs Industry: 2601 underperformed the Hong Kong Insurance industry which returned 16.5% over the past year.

Return vs Market: 2601 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

2601IndustryMarket
7 Day3.0%3.4%2.9%
30 Day-10.2%-4.0%-2.5%
90 Day-7.6%-5.4%-5.4%
1 Year8.4%4.2%18.8%16.5%4.4%0.7%
3 Year11.1%1.0%50.8%42.7%17.0%5.2%
5 Year27.0%8.8%76.1%61.1%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Pacific Insurance (Group) undervalued compared to its fair value and its price relative to the market?

37.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2601 (HK$29.65) is trading below our estimate of fair value (HK$47.41)

Significantly Undervalued: 2601 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2601 is poor value based on its PE Ratio (13x) compared to the Insurance industry average (10.4x).

PE vs Market: 2601 is poor value based on its PE Ratio (13x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2601 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 2601 is overvalued based on its PB Ratio (2.1x) compared to the HK Insurance industry average (1x).


Next Steps

  • Explore potentially undervalued companies in the Insurance industry.

Future Growth

How is China Pacific Insurance (Group) forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2601's forecast earnings growth (7.9% per year) is above the savings rate (2%).

Earnings vs Market: 2601's earnings (7.9% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 2601's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2601's revenue (9.8% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 2601's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2601's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has China Pacific Insurance (Group) performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2601's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: 2601's earnings growth over the past year (58.2%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: 2601 earnings growth over the past year (58.2%) exceeded the Insurance industry 2.7%.


Return on Equity

High ROE: 2601's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: 2601 has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: 2601 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Pacific Insurance (Group)'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: 2601 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2601's debt is covered by short term assets (assets are 1.726010x debt).


Financial Institutions Analysis

Asset Level: 2601's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2601 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2601 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2601 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2601 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2601 has an appropriate level of bad loans.


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.2%markettop25%6.3%industryaverage1.8%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2601's dividend (2.7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 2601's dividend (2.7%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: 2601's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2601's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.9%), 2601's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2601's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Qingwei Kong (59yo)

0.08yrs

Tenure

CN¥1,679,000

Compensation

Mr. Qingwei Kong serves as Chairman of the Board of China Pacific Insurance (Group) Company Ltd. and has been its Executive Director 2017. Mr. Kong serves as the Interim President of China Pacific Insuranc ...


CEO Compensation Analysis

Compensation vs. Market: Qingwei 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: Qingwei's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 2601's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

52yo

Average Age

Experienced Board: 2601's board of directors are not considered experienced ( 2.3 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¥90,061,08205 Aug 19
CTBC Financial Holding Co., Ltd.
EntityCompany
Shares2,669,600
Max PriceCN¥33.74
BuyCN¥66,785,00805 Aug 19
CTBC Financial Holding Co., Ltd.
EntityCompany
Shares2,000,000
Max PriceCN¥33.39
SellCN¥98,205,94518 Jul 19
Schroder Investment Management Limited
EntityCompany
Shares3,090,200
Max PriceCN¥31.78
SellCN¥446,374,02704 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares15,300,249
Max PriceCN¥29.17
SellCN¥841,408,14631 May 19
BlackRock, Inc.
EntityCompany
Shares29,870,000
Max PriceCN¥28.17
BuyCN¥325,708,50431 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares11,554,494
Max PriceCN¥28.19
SellCN¥57,184,02615 May 19
FIL Limited
EntityCompany
Shares1,959,800
Max PriceCN¥29.18
BuyCN¥40,922,62030 Apr 19
BlackRock, Inc.
EntityCompany
Shares1,240,380
Max PriceCN¥32.99
SellCN¥28,378,11621 Mar 19
BlackRock, Inc.
EntityCompany
Shares959,800
Max PriceCN¥29.57
BuyCN¥19,328,99820 Mar 19
BlackRock, Inc.
EntityCompany
Shares655,378
Max PriceCN¥29.49
SellCN¥8,513,02805 Mar 19
BlackRock, Inc.
EntityCompany
Shares280,400
Max PriceCN¥30.36
SellCN¥22,548,27015 Feb 19
BlackRock, Inc.
EntityCompany
Shares810,200
Max PriceCN¥27.83
BuyCN¥24,925,53425 Dec 18
BlackRock, Inc.
EntityCompany
Shares974,000
Max PriceCN¥25.59
SellCN¥5,211,77205 Dec 18
BlackRock, Inc.
EntityCompany
Shares187,600
Max PriceCN¥27.78

Ownership Breakdown


Management Team

  • Maurice Ngai (57yo)

    Joint Company Secretary

    • Tenure: 6.3yrs
  • Qingwei Kong (59yo)

    Interim President & Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: CN¥1.68m
  • Wei Chen (52yo)

    Chief Internal Auditor & Chief Auditing Officer

    • Tenure: 8.1yrs
  • Yuanhan Zhang (52yo)

    Chief Actuary & CFO

    • Tenure: 0.6yrs
  • Yanhong Pan (50yo)

    Executive Vice President

    • Tenure: 5.8yrs
  • Xin Ma (46yo)

    VP, Joint Company Secretary & Board Secretary

    • Tenure: 4.3yrs
  • Weidong Zhang (49yo)

    Chief Risk & Compliance Officer and General Counsel

    • Tenure: 1yrs
  • Yanyan Zhang

    IR contacts

    • Tenure: 0yrs
  • Benjamin Deng (50yo)

    Chief Investment Officer

    • Tenure: 0.8yrs
  • Guoqiang Rong (57yo)

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Carmelo Lee (59yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
  • Qingwei Kong (59yo)

    Interim President & Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: CN¥1.68m
  • Junhao Wu (54yo)

    Non-Executive Director

    • Tenure: 7.3yrs
  • Xiaoning Sun (50yo)

    Non-Executive Director

    • Tenure: 6.3yrs
  • Shanwen Gao (48yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥300.00k
  • Tayu Wang (49yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥250.00k
  • Xiangqing Kong (52yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥250.00k
  • Xuanmin Chen (54yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥63.00k
  • Yonghong Zhu (50yo)

    Chairman of the Board of Supervisors

    • Tenure: 1.3yrs
  • Dinan Huang

    Vice Chairman

    • Tenure: 0.8yrs

Company Information

China Pacific Insurance (Group) Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Pacific Insurance (Group) Co., Ltd.
  • Ticker: 2601
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: CN¥307.040b
  • Listing Market Cap: CN¥340.893b
  • Shares outstanding: 9.06b
  • Website: https://www.cpic.com.cn

Number of Employees


Location

  • China Pacific Insurance (Group) Co., Ltd.
  • 1 South Zhongshan Road
  • Huangpu District
  • Shanghai
  • 200010
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601601SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYDec 2007
601601XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2007
2601SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2009
75CDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2009
CHPX.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDDec 2009
2601SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2009
2601SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2009
CHPX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2011

Biography

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People’s Republic of China. The company operates through Life Insurance, Property and Casualty In ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:41
End of Day Share Price2019/10/15 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.