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 Analysis

Solid track record and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

2628

-0.04%

HK Insurance

0.2%

HK Market


1 Year Return

-31.1%

2628

-21.5%

HK Insurance

-22.0%

HK Market

Return vs Industry: 2628 underperformed the Hong Kong Insurance industry which returned -21.5% over the past year.

Return vs Market: 2628 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

2628IndustryMarket
7 Day-0.5%-0.04%0.2%
30 Day-18.6%-13.0%-10.8%
90 Day-29.8%-22.7%-16.5%
1 Year-30.3%-31.1%-20.0%-21.5%-19.1%-22.0%
3 Year-33.1%-35.9%16.8%10.6%-3.7%-13.4%
5 Year-58.9%-62.3%-13.3%-20.4%-15.2%-28.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2628 (HK$15.1) is trading below our estimate of fair value (HK$33.89)

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


Price To Earnings Ratio

PE vs Industry: 2628 is poor value based on its PE Ratio (6.7x) compared to the Insurance industry average (6.7x).

PE vs Market: 2628 is good value based on its PE Ratio (6.7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2628's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 2628 is overvalued based on its PB Ratio (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 16 analysts?

-1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2628's earnings are forecast to decline over the next 3 years (-1.9% per year).

Earnings vs Market: 2628's earnings are forecast to decline over the next 3 years (-1.9% per year).

High Growth Earnings: 2628's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2628's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 2628's revenue (2.8% 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 (11.5%).


Next Steps

Past Performance

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

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2628 has high quality earnings.

Growing Profit Margin: 2628's current net profit margins (8%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 2628's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: 2628's earnings growth over the past year (429.4%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: 2628 earnings growth over the past year (429.4%) exceeded the Insurance industry 61%.


Return on Equity

High ROE: 2628's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is China Life Insurance'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: 2628 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2628's debt is covered by short term assets (assets are 1.5x debt).


Financial Institutions Analysis

Asset Level: 2628's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2628 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2628 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2628 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2628 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2628 has an appropriate level of bad loans.


Next Steps

Dividend

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

1.16%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2628's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 2628's dividend (1.16%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).


Stability and Growth of Payments

Stable Dividend: 2628 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2628 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2628 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2628's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Hengxuan Su (56yo)

no data

Tenure

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

Compensation vs Market: Hengxuan's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD985.66K).

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 Board1.33yrsno datano data
Hengxuan Su
President & Executive Directorno datano datano data
Peng Zhao
VP, Financial Controller & Executive Director0.17yrCN¥2.67mno data
Ruan Qi
Vice President3.5yrsCN¥2.92mno data
Chongmiao Xu
GM of the Legal & Compliance Department and Compliance & Legal Officer5.58yrsCN¥987.43kno data
Mingguang Li
Executive Director0.67yrCN¥2.74mno data
Zhong Zhan
Vice Presidentno dataCN¥2.20mno data
Li Yinghui
Investor Relations Executiveno datano datano data
Grace Hou
Investor Relations Executiveno datano datano data

4.5yrs

Average Tenure

51yo

Average Age

Experienced Management: 2628's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bin Wang
Executive Chairman of the Board1.33yrsno datano data
Hengxuan Su
President & Executive Directorno datano datano data
Peng Zhao
VP, Financial Controller & Executive Director0.17yrCN¥2.67mno data
Mingguang Li
Executive Director0.67yrCN¥2.74mno data
Yuzeng Jia
Chairman of the Board of Supervisors1.75yrsCN¥353.62kno data
Tso Tung Chang
Independent Non-Executive Director5.5yrsCN¥320.00kno data
Huimin Liu
Non-Executive Director2.75yrsno datano data
Oi-Sie Leung
Independent Non-Executive Director3.75yrsCN¥300.00kno data
Robinson Pike
Independent Non-Executive Director4.75yrsCN¥320.00kno data
Xin Tang
Independent Non-Executive Director4.08yrsCN¥320.00kno data

2.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 2628's board of directors are not considered experienced ( 2.3 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$711.174b
  • 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 5 ORD 'H'CNY1USUSDDec 2003
CLFDB (Deutsche Boerse AG)ADR EACH REP 5 ORD 'H'CNY1DEEURDec 2003
LFC NBMV (Bolsa Mexicana de Valores)ADR EACH REP 5 ORD 'H'CNY1MXMXNDec 2003
0A2ELSE (London Stock Exchange)ADR EACH REP 5 ORD 'H'CNY1GBUSDDec 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 Insurance Business, Accident Insurance Business, and Other Businesses. The company offers individual and group life, annuity, accident, and health insurance products, as well as pension products. It is also involved in the asset management, annuity, retirement properties investment, fund management, financial service, health management, investment, investment management, and reinsurance businesses. China Life Insurance Company Limited sells its products through agents, direct sales representatives, and dedicated and non-dedicated agencies. The company was founded in 1949 and is headquartered in Beijing, the People’s Republic of China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 13:11
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.