SEHK:966

Stock Analysis Report

China Taiping Insurance Holdings

Executive Summary

China Taiping Insurance Holdings Company Limited, an investment holding company, underwrites direct life insurance, property and casualty insurance, and various classes of reinsurance products.

Rewards

Trading at 59.6% below its fair value

Earnings are forecast to grow 9.32% per year

Risk Analysis

No risks detected for 966 from our risk checks.


Snowflake Analysis

Very undervalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 966 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

966

0.7%

HK Insurance

0.6%

HK Market


1 Year Return

-31.7%

966

4.4%

HK Insurance

-5.7%

HK Market

Return vs Industry: 966 underperformed the Hong Kong Insurance industry which returned 4.4% over the past year.

Return vs Market: 966 underperformed the Hong Kong Market which returned -5.7% over the past year.


Shareholder returns

966IndustryMarket
7 Day0%0.7%0.6%
30 Day-8.5%-3.9%-0.8%
90 Day-8.4%-0.03%4.1%
1 Year-31.4%-31.7%6.4%4.4%-2.2%-5.7%
3 Year-6.5%-7.8%43.2%35.5%13.8%2.3%
5 Year-35.8%-36.7%28.5%17.8%14.8%-4.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Taiping Insurance Holdings 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: 966 (HK$17.1) is trading below our estimate of fair value (HK$42.31)

Significantly Below Fair Value: 966 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 966 is good value based on its PE Ratio (7.5x) compared to the Insurance industry average (9.4x).

PE vs Market: 966 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 966 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 966 is good value based on its PB Ratio (0.8x) compared to the HK Insurance industry average (1.1x).


Next Steps

Future Growth

How is China Taiping Insurance Holdings forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 966's forecast earnings growth (9.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 966's earnings (9.3% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).

High Growth Earnings: 966's earnings are forecast to grow, but not significantly.

Revenue vs Market: 966's revenue (10.7% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 966's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 966's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has China Taiping Insurance Holdings performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 966 has high quality earnings.

Growing Profit Margin: 966's current net profit margins (3.7%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: 966's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: 966's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 966 had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Insurance industry average (4.6%).


Return on Equity

High ROE: 966's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Taiping Insurance Holdings'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: 966 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 966's debt is covered by short term assets (assets are 2.8x debt).


Financial Institutions Analysis

Asset Level: 966's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 966 has a sufficient allowance for bad loans.

Low Risk Liabilities: 966 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 966 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 966 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 966 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 966's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 966's dividend (0.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 966 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 966 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: 966 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 966'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?

3.4yrs

Average management tenure


CEO

Sidong Wang (58yo)

2.1yrs

Tenure

HK$842,771

Compensation

Mr. Wang Sidong has been Vice Chairman of the Board, Executive Director and General Manager of China Taiping Ins Hldgs Co Ltd since January 25, 2018. Mr. Wang serves as Vice President and Member of Executi ...


CEO Compensation Analysis

Compensation vs Market: Sidong's total compensation ($USD108.28K) is below average for companies of similar size in the Hong Kong market ($USD579.88K).

Compensation vs Earnings: Insufficient data to compare Sidong's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sidong Wang
Vice Chairman & GM2.1yrsHK$842.77kno data
Xi Luo
Executive Chairman1.4yrsno datano data
Ruohan Zhang
CFO & Company Secretary2.8yrsno datano data
Cynthia Choi
The main contact person0yrsno datano data
Mo Chen
Chief Internal Auditor6.5yrsno datano data
Shengjun Ren
Deputy General Manager5.1yrsno datano data
Bo Hong
Deputy General Manager4.1yrsno datano data
Xing Xiao
Deputy General Manager2.7yrsno datano data

3.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 966's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sidong Wang
Vice Chairman & GM2.1yrsHK$842.77kno data
Xi Luo
Executive Chairman1.4yrsno datano data
Zhichun Xie
Independent Non-Executive Director4.7yrsHK$320.00kno data
Jie Si Wu
Independent Non-Executive Director20.1yrsHK$320.00kno data
Ting Yuk Wu
Independent Non-Executive Director6.5yrsHK$320.00kno data
Xingguo Hu
Non-Executive Director0.2yrsno datano data
Dajian Zhu
Independent Non-Executive Director5.5yrsHK$320.00kno data
Cui Zhang
Non-Executive Director0.2yrsno datano data
Zhaoxu Guo
Non-Executive Director0.2yrsno datano data
Changgui Yang
Non-Executive Director0.2yrsno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 966's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: China Taiping Insurance Holdings Company Limited
  • Ticker: 966
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: HK$62.392b
  • Shares outstanding: 3.59b
  • Website: https://www.ctih.cntaiping.com

Number of Employees


Location

  • China Taiping Insurance Holdings Company Limited
  • 18 King Wah Road
  • 25th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CINS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2000
966SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2000
HIUCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2000
966SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2000
966SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2000

Biography

China Taiping Insurance Holdings Company Limited, an investment holding company, underwrites direct life insurance, property and casualty insurance, and various classes of reinsurance products. It operates through Life Insurance Business, PRC Property and Casualty Insurance Business, Overseas Property and Casualty Insurance Business, Reinsurance Business, Pension and Group Life Insurance Business, and Other Businesses segments. The company’s life insurance products include individual and group life insurance, health insurance, accident insurance, and annuity. Its property and casualty insurance products comprise compulsory motor insurance; and liability insurance, credit insurance, guarantee insurance, and short-term accident and health insurance, as well as related reinsurance products. The company’s reinsurance portfolio covers property damage, life, marine cargo and hull, and miscellaneous non-marine classes. The company is also involved in the pension, assets management, insurance intermediary, E-commerce for insurance, financial leasing, property investment, securities dealing and broking, and elderly care investment businesses. In addition, it provides back to back financing arrangement, and insurance broking and agency services. The company operates in the People’s Republic of China and internationally. The company was formerly known as China Insurance International Holdings Company Limited and changed its name to China Taiping Insurance Holdings Company Limited in August 2009. The company was incorporated in 2000 and is based in North Point, Hong Kong. China Taiping Insurance Holdings Company Limited is a subsidiary of China Taiping Insurance Group (HK) Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:39
End of Day Share Price2020/02/21 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.