Sunshine Insurance Group Company Limited

SZSC:6963 Stock Report

Market Cap: HK$31.2b

Sunshine Insurance Group Valuation

Is 6963 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 6963 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6963 (HK$2.71) is trading below our estimate of fair value (HK$9.81)

Significantly Below Fair Value: 6963 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6963?

Key metric: As 6963 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6963. This is calculated by dividing 6963's market cap by their current earnings.
What is 6963's PE Ratio?
PE Ratio7.3x
EarningsCN¥3.99b
Market CapCN¥29.01b

Price to Earnings Ratio vs Peers

How does 6963's PE Ratio compare to its peers?

The above table shows the PE ratio for 6963 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.1x
966 China Taiping Insurance Holdings
7.2x12.6%HK$43.0b
376 Yunfeng Financial Group
8.6xn/aHK$3.9b
1299 AIA Group
16.3x13.9%HK$611.0b
2628 China Life Insurance
4.3x-14.5%HK$1.0t
6963 Sunshine Insurance Group
7.3x17.0%HK$31.2b

Price-To-Earnings vs Peers: 6963 is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does 6963's PE Ratio compare vs other companies in the Asian Insurance Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
6963 7.3xIndustry Avg. 10.8xNo. of Companies49PE0816243240+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6963 is good value based on its Price-To-Earnings Ratio (7.3x) compared to the Asian Insurance industry average (10.8x).

Price to Earnings Ratio vs Fair Ratio

What is 6963's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6963 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6963's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 6963 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.71
HK$4.35
+60.5%
18.8%HK$5.43HK$2.78n/a6
Nov ’25HK$3.29
HK$4.44
+34.9%
18.8%HK$5.54HK$2.84n/a6
Oct ’25HK$3.42
HK$4.44
+29.7%
18.8%HK$5.54HK$2.84n/a6
Sep ’25n/a
HK$4.45
0%
18.8%HK$5.56HK$2.85n/a6
Aug ’25n/a
HK$4.48
0%
23.5%HK$5.74HK$2.80n/a6
Jul ’25n/a
HK$4.46
0%
23.5%HK$5.71HK$2.78n/a6
Jun ’25n/a
HK$4.79
0%
20.1%HK$5.75HK$2.80n/a6
May ’25n/a
HK$4.79
0%
20.1%HK$5.75HK$2.80n/a6
Apr ’25n/a
HK$4.79
0%
20.1%HK$5.75HK$2.80n/a6
Mar ’25n/a
HK$5.64
0%
14.5%HK$6.65HK$4.11n/a6
Feb ’25n/a
HK$5.73
0%
12.3%HK$6.68HK$4.50n/a6
Jan ’25n/a
HK$5.56
0%
14.1%HK$6.53HK$4.10n/a6
Dec ’24n/a
HK$5.56
0%
14.1%HK$6.53HK$4.10n/a6
Nov ’24n/a
HK$5.56
0%
14.1%HK$6.53HK$4.10HK$3.296
Oct ’24n/a
HK$5.74
0%
13.1%HK$6.60HK$4.38HK$3.425
Sep ’24n/a
HK$5.74
0%
13.1%HK$6.60HK$4.38n/a5
Aug ’24n/a
HK$5.91
0%
13.8%HK$6.80HK$4.49n/a5
Jul ’24n/a
HK$5.91
0%
13.8%HK$6.80HK$4.49n/a5
Jun ’24n/a
HK$5.91
0%
13.8%HK$6.80HK$4.49n/a5
May ’24n/a
HK$6.22
0%
8.2%HK$6.80HK$5.51n/a5
Apr ’24n/a
HK$6.40
0%
8.5%HK$7.00HK$5.52n/a4
Mar ’24n/a
HK$6.45
0%
9.3%HK$7.18HK$5.52n/a4
Feb ’24n/a
HK$6.45
0%
13.1%HK$7.30HK$5.60n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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