OTCPK:PPCC.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

PICC Property and Casualty

Executive Summary

PICC Property and Casualty Company Limited, together with its subsidiaries, operates as a property and casualty insurance company in the People’s Republic of China.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has PICC Property and Casualty's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.4%

PPCC.Y

4.1%

US Insurance

1.2%

US Market


1 Year Return

-27.5%

PPCC.Y

-10.8%

US Insurance

16.8%

US Market

Return vs Industry: PPCC.Y underperformed the US Insurance industry which returned -11.7% over the past year.

Return vs Market: PPCC.Y underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

PPCC.YIndustryMarket
7 Day0.4%4.1%1.2%
30 Day-9.8%8.6%4.9%
90 Day-11.5%22.3%20.0%
1 Year-27.5%-27.5%-8.5%-10.8%19.3%16.8%
3 Year-32.8%-36.5%6.0%-1.9%43.7%34.4%
5 Year-35.9%-42.2%36.4%19.3%75.5%56.6%

Price Volatility Vs. Market

How volatile is PICC Property and Casualty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PICC Property and Casualty 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: PPCC.Y ($20.21) is trading below our estimate of fair value ($52.59)

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


Price To Earnings Ratio

PE vs Industry: PPCC.Y is good value based on its PE Ratio (5.1x) compared to the US Insurance industry average (14.9x).

PE vs Market: PPCC.Y is good value based on its PE Ratio (5.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PPCC.Y is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PPCC.Y is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is PICC Property and Casualty forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPCC.Y's forecast earnings growth (4.4% per year) is above the savings rate (2.2%).

Earnings vs Market: PPCC.Y's earnings (4.4% per year) are forecast to grow slower than the US market (23.7% per year).

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

Revenue vs Market: PPCC.Y's revenue (6.9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: PPCC.Y's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPCC.Y's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has PICC Property and Casualty performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPCC.Y has high quality earnings.

Growing Profit Margin: PPCC.Y's current net profit margins (6.1%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: PPCC.Y's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: PPCC.Y's earnings growth over the past year (56.8%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: PPCC.Y earnings growth over the past year (56.8%) exceeded the Insurance industry -4.8%.


Return on Equity

High ROE: PPCC.Y's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is PICC Property and Casualty's financial position?


Financial Position Analysis

Short Term Liabilities: PPCC.Y's short term assets (CN¥148.1B) do not cover its short term liabilities (CN¥252.9B).

Long Term Liabilities: PPCC.Y's short term assets (CN¥148.1B) do not cover its long term liabilities (CN¥173.2B).


Debt to Equity History and Analysis

Debt Level: PPCC.Y's debt to equity ratio (18.8%) is considered satisfactory.

Reducing Debt: PPCC.Y's debt to equity ratio has reduced from 42.8% to 18.8% over the past 5 years.

Debt Coverage: PPCC.Y's debt is well covered by operating cash flow (80.9%).

Interest Coverage: PPCC.Y's interest payments on its debt are well covered by EBIT (14.8x coverage).


Balance Sheet


Next Steps

Dividend

What is PICC Property and Casualty current dividend yield, its reliability and sustainability?

8.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPCC.Y's dividend (8.26%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PPCC.Y's dividend (8.26%) is in the top 25% of dividend payers in the US market (4.35%)


Stability and Growth of Payments

Stable Dividend: PPCC.Y has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PPCC.Y's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.2%), PPCC.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPCC.Y's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Yiqun Xie (59 yo)

1.42yrs

Tenure

Mr. Yiqun Xie serves as a Executive Vice Chairman of the Board and President at PICC Property and Casualty Company Ltd., since March 2019. Mr. Xie serves as Vice President and Executive Director of People' ...


Leadership Team

NamePositionTenureCompensationOwnership
Yiqun Xie
Executive Vice Chairman & President1.42yrsno datano data
Dong Shen
Executive VPno datano datano data
Zhihong Zou
Secretary of the Board & GM of Legal Departmentno datano datano data
Caishi Jiang
Executive Director0.17yrno datano data
Xiaoyu Xie
Executive VP & Executive Directorno datano datano data
Xianguo Feng
Executive Vice Presidentno datano datano data
Jianlin Wu
Executive Vice Presidentno datano datano data
Liduo Shao
Executive VP & Chief Information Technology Officerno datano datano data
Zhou Shuqun
President of PICC Asset Management Co Ltd and Vice President of PICCno datano datano data
Mei Ko
Company Secretary1.58yrsno datano data

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: PPCC.Y's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yiqun Xie
Executive Vice Chairman & President1.42yrsno datano data
Caishi Jiang
Executive Director0.17yrno datano data
Xiaoyu Xie
Executive VP & Executive Directorno datano datano data
Zhengfei Lu
Independent Supervisor9.58yrsCN¥302.00kno data
Tao Li
Non-Executive Director13.83yrsno datano data
Xiaohui Qu
Independent Non-executive Director2.83yrsCN¥233.00kno data
Hanchuan Lin
Independent Non-Executive Director7.42yrsCN¥233.00kno data
Chung Hing Lo
Independent Non-Executive Director5.17yrsCN¥233.00kno data
Yusheng Ma
Independent Non-Executive Director5.17yrsCN¥233.00kno data
Bende Chu
Independent Non-Executive Director4.17yrsCN¥233.00kno data
Hong Gao
Employee Representative Supervisor3.5yrsno datano data
Xiaoli Zhang
Chairman of Supervisory Committee0.17yrno datano data

4.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PPCC.Y's board of directors are considered experienced (4.2 years average tenure).


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

PICC Property and Casualty Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PICC Property and Casualty Company Limited
  • Ticker: PPCC.Y
  • Exchange: OTCPK
  • Founded: 2003
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: HK$138.128b
  • Listing Market Cap: HK$17.822b
  • Shares outstanding: 22.24b
  • Website: https://www.epicc.com.cn

Location

  • PICC Property and Casualty Company Limited
  • Tower 2
  • No. 2 Jianguomenwai Avenue
  • Beijing
  • Beijing Province
  • 100022
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPCC.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDNov 2003
2328SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2003
PJCDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURNov 2003
2328SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2003
2328SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDNov 2003
PPCC.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

PICC Property and Casualty Company Limited, together with its subsidiaries, operates as a property and casualty insurance company in the People’s Republic of China. It operates through Motor Vehicle; Comme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 00:01
End of Day Share Price2020/08/10 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.