SEHK:2628

Stock Analysis Report

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.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

-4.1%

2628

-2.9%

HK Insurance

-1.5%

HK Market


1 Year Return

8.1%

2628

11.7%

HK Insurance

-7.5%

HK Market

2628 underperformed the Insurance industry which returned 14% over the past year.

2628 outperformed the Market in Hong Kong which returned -6.7% over the past year.


Share holder returns

2628IndustryMarket
7 Day-4.1%-2.9%-1.5%
30 Day3.4%1.9%2.1%
90 Day-2.2%-2.9%-5.5%
1 Year9.2%8.1%13.9%11.7%-4.1%-7.5%
3 Year-7.4%-11.3%46.3%38.5%14.2%2.6%
5 Year-7.1%-14.7%73.4%58.7%16.5%-2.9%

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

2 weeks ago | Simply Wall St

Do Institutions Own China Life Insurance Company Limited (HKG:2628) Shares?

Valuation

Is China Life Insurance undervalued based on future cash flows and its price relative to the stock market?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Life Insurance's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Life Insurance's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Life Insurance is overvalued based on earnings compared to the HK Insurance industry average.

China Life Insurance is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Life Insurance earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

China Life Insurance is overvalued based on assets compared to the HK Insurance industry average.


Next Steps

Future Growth

How is China Life Insurance expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Life Insurance's revenue is expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

China Life Insurance's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

China Life Insurance's revenue growth is expected to exceed the Hong Kong market average.

China Life Insurance's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

China Life Insurance's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Life Insurance is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-5.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Life Insurance's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

China Life Insurance's 1-year earnings growth is negative, it can't be compared to the 5-year average.

China Life Insurance's 1-year earnings growth is negative, it can't be compared to the HK Insurance industry average.


Return on Equity

China Life Insurance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Life Insurance used its assets less efficiently than the HK Insurance industry average last year based on Return on Assets.


Return on Capital Employed

China Life Insurance has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Life Insurance's financial position?


Financial Position Analysis

China Life Insurance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China Life Insurance's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Life Insurance's level of debt (39%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (57.3% vs 39% today).

Debt is well covered by operating cash flow (174.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

3.55%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Life Insurance's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.2%).

China Life Insurance's dividend is below the markets top 25% of dividend payers in Hong Kong (6.15%).

China Life Insurance is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

China Life Insurance is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of China Life Insurance's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Hengxuan Su (56yo)

0yrs

Tenure

0

Mr. Hengxuan Su serves as Non-Executive Director at China Life Property and Casualty Insurance Company Ltd. He serves as Vice President at China Life Insurance (Group) Company. Mr. Su has been Executive Di ...


CEO Compensation Analysis

Hengxuan's remuneration is lower than average for companies of similar size in Hong Kong.

Hengxuan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

51yo

Average Age

The tenure for the China Life Insurance management team is about average.


Board Age and Tenure

1.8yrs

Average Tenure

56.5yo

Average Age

The average tenure for the China Life Insurance board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Hengxuan Su (56yo)

    President

    • Tenure: 0yrs
  • Victor Heng (42yo)

    Company Secretary

    • Tenure: 0yrs
  • Mingguang Li (50yo)

    Executive Director

    • Tenure: 0.08yrs
    • Compensation: CN¥1.67m
  • Bin Wang (61yo)

    Chairman of the Board

    • Tenure: 0.8yrs
  • Zhong Zhan (51yo)

    Vice President

    • Tenure: 0yrs
    • Compensation: CN¥1.39m
  • Ruan Qi (53yo)

    Vice President

    • Tenure: 2.9yrs
    • Compensation: CN¥1.93m
  • Peng Zhao (47yo)

    VP, Financial Controller & In Charge of Finance

    • Tenure: 0.2yrs
    • Compensation: CN¥1.73m
  • Song Ping (55yo)

    GM of the Administration Office & Supervisor

    • Tenure: 1.5yrs
  • Chongmiao Xu (50yo)

    GM of the Legal & Compliance Department and Compliance & Legal Officer

    • Tenure: 5yrs
    • Compensation: CN¥716.93k
  • Grace Hou

    Investor Relations Executive

    • Tenure: 0yrs

Board Members

  • Yuzeng Jia (57yo)

    Chairman of the Board of Supervisors

    • Tenure: 1.2yrs
    • Compensation: CN¥353.62k
  • Stephen Chang (71yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥320.00k
  • Huimin Liu (54yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Hengxuan Su (56yo)

    President

    • Tenure: 0yrs
  • Elsie Leung (80yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥300.00k
  • Mingguang Li (50yo)

    Executive Director

    • Tenure: 0.08yrs
    • Compensation: CN¥1.67m
  • Bin Wang (61yo)

    Chairman of the Board

    • Tenure: 0.8yrs
  • Bajak Pike (68yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥320.00k
  • Xin Tang (48yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥320.00k
  • Song Ping (55yo)

    GM of the Administration Office & Supervisor

    • Tenure: 1.5yrs

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$801.790b
  • 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
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LFCNYSE (New York Stock Exchange)ADR EACH REP 15 ORD 'H'CNY1USUSDDec 2003
CLFDB (Deutsche Boerse AG)ADR EACH REP 15 ORD 'H'CNY1DEEURDec 2003
LFC NBMV (Bolsa Mexicana de Valores)ADR EACH REP 15 ORD 'H'CNY1MXMXNDec 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 Analysis2019/09/19 12:37
End of Day Share Price2019/09/19 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.