SEHK:2628

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China Life Insurance

Executive Summary

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People’s Republic of China. More Details


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has China Life Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2628 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2628's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.2%

2628

3.0%

HK Insurance

1.5%

HK Market


1 Year Return

-6.5%

2628

-0.007%

HK Insurance

11.3%

HK Market

Return vs Industry: 2628 underperformed the Hong Kong Insurance industry which returned -0% over the past year.

Return vs Market: 2628 underperformed the Hong Kong Market which returned 11.3% over the past year.


Shareholder returns

2628IndustryMarket
7 Day5.2%3.0%1.5%
30 Day9.9%12.0%8.1%
90 Day-2.0%5.3%6.0%
1 Year-2.6%-6.5%3.3%-0.007%15.9%11.3%
3 Year-21.4%-26.9%5.4%-2.1%1.7%-8.9%
5 Year-20.7%-29.1%31.0%16.9%33.3%10.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Life Insurance undervalued compared to its fair value and its price relative to the market?

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2628 (HK$18.5) is trading below our estimate of fair value (HK$35.34)

Significantly Below Fair Value: 2628 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2628 is good value based on its PE Ratio (9.4x) compared to the HK Insurance industry average (10.1x).

PE vs Market: 2628 is good value based on its PE Ratio (9.4x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2628 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2628 is overvalued based on its PB Ratio (1.1x) compared to the HK Insurance industry average (0.9x).


Next Steps

Future Growth

How is China Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2628's forecast earnings growth (9.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 2628's earnings (9.7% per year) are forecast to grow slower than the Hong Kong market (22% per year).

High Growth Earnings: 2628's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2628's revenue (8.2% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 2628's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2628's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has China Life Insurance performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2628 has high quality earnings.

Growing Profit Margin: 2628's current net profit margins (5.9%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: 2628's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: 2628's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2628 had negative earnings growth (-3.4%) over the past year, making it difficult to compare to the Insurance industry average (-3.4%).


Return on Equity

High ROE: 2628's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is China Life Insurance's financial position?


Financial Position Analysis

Short Term Liabilities: 2628's short term assets (CN¥351.1B) exceed its short term liabilities (CN¥319.7B).

Long Term Liabilities: 2628's short term assets (CN¥351.1B) do not cover its long term liabilities (CN¥3,315.9B).


Debt to Equity History and Analysis

Debt Level: 2628's debt to equity ratio (29.3%) is considered satisfactory.

Reducing Debt: 2628's debt to equity ratio has increased from 23.6% to 29.3% over the past 5 years.

Debt Coverage: 2628's debt is well covered by operating cash flow (255.6%).

Interest Coverage: 2628's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is China Life Insurance current dividend yield, its reliability and sustainability?

4.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2628's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.19%).

High Dividend: 2628's dividend (4.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: 2628's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2628's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.6%), 2628's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2628's dividends in 3 years are forecast to be well covered by earnings (35.7% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Hengxuan Su (57 yo)

no data

Tenure

Mr. Hengxuan Su has been the President of China Life Insurance Company Ltd. since April 2, 2019 and has been its Executive Director since December 20, 2018 and serves as its Principal Executive Officer. Mr...


CEO Compensation Analysis

Compensation vs Market: Hengxuan's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD830.23K).

Compensation vs Earnings: Hengxuan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bin Wang
Executive Chairman of the Board1.92yrsno datano data
Hengxuan Su
Presidentno datano datano data
Ruan Qi
Vice President4.08yrsCN¥1.48mno data
Chongmiao Xu
Compliance Officer6.17yrsCN¥846.90kno data
Hong Yang
VP & Operating Director1.33yrsCN¥1.46mno data
Zhong Zhan
Vice Presidentno dataCN¥1.46mno data
Mingguang Li
Executive Director1.25yrsCN¥2.35mno data
Xiumei Huang
Vice President of Finance0.50yrCN¥193.80kno data
Guodong Zhao
Assistant to the President1.08yrsno datano data
Qun Huo
Assistant President1.08yrsno datano data
Ja Wei Heng
Company Secretaryno datano datano data
Li Yinghui
Investor Relations Executiveno datano datano data

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: 2628's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bin Wang
Executive Chairman of the Board1.92yrsno datano data
Hengxuan Su
Presidentno datano datano data
Mingguang Li
Executive Director1.25yrsCN¥2.35mno data
Yuzeng Jia
Chairman of the Board of Supervisors2.33yrsCN¥353.62kno data
Tso Tung Chang
Independent Non-Executive Director6.08yrsCN¥320.00kno data
Huimin Liu
Non-Executive Director3.33yrsno datano data
Junhui Wang
Non-Executive Director1.25yrsno datano data
Oi-Sie Leung
Independent Non-Executive Directorno dataCN¥300.00kno data
Robinson Pike
Independent Non-Executive Director5.33yrsCN¥320.00kno data
Xin Tang
Independent Non-Executive Director4.67yrsCN¥320.00kno data
Zhaojun Yin
Non-Executive Director3.33yrsno datano data
Changqing Yuan
Non-Executive Director2.67yrsno datano data

2.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 2628's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Life Insurance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Life Insurance Company Limited
  • Ticker: 2628
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: HK$1.188t
  • Shares outstanding: 28.26b
  • Website: https://www.e-chinalife.com

Number of Employees


Location

  • China Life Insurance Company Limited
  • China Life Plaza
  • 12th Floor
  • Beijing
  • Beijing Province
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFCNYSE (New York Stock Exchange)SPON ADR REP HUSUSDDec 2003
CLFDB (Deutsche Boerse AG)SPON ADR REP HDEEURDec 2003
LFC NBMV (Bolsa Mexicana de Valores)SPON ADR REP HMXMXNDec 2003
0A2ELSE (London Stock Exchange)SPON ADR REP HGBUSDDec 2003
CILJ.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2003
2628SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2003
CHLDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2003
2628SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2003
2628SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2003
601628SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2007
601628XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2007

Biography

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People’s Republic of China. It operates in four segments: Life Insurance Business, Health I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 10:17
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.