CHINA PACIFIC INSU (HK), a company active in the Life Insurance industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis d...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Bullish Inflections Around The World Our previous Int'l Compass (11/5/20) outlined our constructive outlook, with the caveat that $77 support needed to hold on the MSCI ACWI (ACWI-US), and that we would shift to a bullish stance on a breakout above $84. Positive COVID vaccine news has since led to bullish inflections in a staggering number of countries, ACWI-US included. Staying true to our word and considering market dynamics remain positive, our current outlook is bullish. Buy dips. · ...
With net profit growth accelerating to 46% from 23% in 2018, no-moat China Pacific Insurance's first-quarter results were on track to deliver our full-year expectation of over 40% growth. The pickup in growth was attributable to strong investment return and the CNY 7.3 billion reduction in insurance liability reserve as a result of rising 720-day moving average 10-year government bond yield. Investment return for the quarter surged 40%, versus a 10% decline in the year-ago period. Total investme...
With net profit growth accelerating to 46% from 23% in 2018, no-moat China Pacific Insurance's first-quarter results were on track to deliver our full-year expectation of over 40% growth. The pickup in growth was attributable to strong investment return and the CNY 7.3 billion reduction in insurance liability reserve as a result of rising 720-day moving average 10-year government bond yield. Investment return for the quarter surged 40%, versus a 10% decline in the year-ago period. Total investme...
Following no-moat China Pacific Insurance's 2018 results, we retain our fair value estimate at CNY 34 per share for A shares and HKD 38 for H shares as we made little change to key assumptions. China Pacific's H shares are trading at an 18% discount to our fair value estimate and 0.8 times 2019 price/embedded value assuming 15% growth in embedded value, or EV, versus the 18% average growth over the past five years. We believe the stock is undervalued as the market remains overly concerned about ...
Following no-moat China Pacific Insurance's 2018 results, we retain our fair value estimate at CNY 34 per share for A shares and HKD 38 for H shares as we made little change to key assumptions. China Pacific's H shares are trading at an 18% discount to our fair value estimate and 0.8 times 2019 price/embedded value assuming 15% growth in embedded value, or EV, versus the 18% average growth over the past five years. We believe the stock is undervalued as the market remains overly concerned about ...
Following no-moat China Pacific Insurance's 2018 results, we retain our fair value estimate at CNY 34 per share for A shares and HKD 38 for H shares as we made little change to key assumptions. China Pacific's H shares are trading at an 18% discount to our fair value estimate and 0.8 times 2019 price/embedded value assuming 15% growth in embedded value, or EV, versus the 18% average growth over the past five years. We believe the stock is undervalued as the market remains overly concerned about ...
We think China’s latest cut in its reserve requirement ratio will have only a limited impact on the valuations of the Chinese insurers we cover. The RRR cut will affect insurance investment return and reserving charges as interest rates decline after the liquidity injection. However, we expect the negative impact on investment returns will be smaller than what the market is expecting, thanks to a five- to seven-year holding period of fixed-income investments, rising profit contribution from ...
We think China’s latest cut in its reserve requirement ratio will have only a limited impact on the valuations of the Chinese insurers we cover. The RRR cut will affect insurance investment return and reserving charges as interest rates decline after the liquidity injection. However, we expect the negative impact on investment returns will be smaller than what the market is expecting, thanks to a five- to seven-year holding period of fixed-income investments, rising profit contribution from ...
Following no-moat China Pacific Insurance, or CPIC’s, third-quarter results, we reduce our fair value estimate to CNY 34 from CNY 38 per share for A shares and to HKD 38 from HKD 43 for H shares to reflect our slower near-term premium growth assumption. With slowing premium growth and weaker investment returns, growth in CPIC's total revenue and net profits dropped to 13.6% and 16.4% for the first three quarters. Year-on-year growth in P&C insurance premium slowed to 9.3% from 16% in the first...
Following no-moat China Pacific Insurance, or CPIC’s, third-quarter results, we reduce our fair value estimate to CNY 34 from CNY 38 per share for A shares and to HKD 38 from HKD 43 for H shares to reflect our slower near-term premium growth assumption. With slowing premium growth and weaker investment returns, growth in CPIC's total revenue and net profits dropped to 13.6% and 16.4% for the first three quarters. Year-on-year growth in P&C insurance premium slowed to 9.3% from 16% in the first...
Following no-moat China Pacific Insurance, or CPIC’s, third-quarter results, we reduce our fair value estimate to CNY 34 from CNY 38 per share for A shares and to HKD 38 from HKD 43 for H shares to reflect our slower near-term premium growth assumption. With slowing premium growth and weaker investment returns, growth in CPIC's total revenue and net profits dropped to 13.6% and 16.4% for the first three quarters. Year-on-year growth in P&C insurance premium slowed to 9.3% from 16% in the fir.....
CPIC's trusted brand and extensive distribution network establish a strong foundation for steady long-term growth, thanks to continuing improvements in agent productivity and the company's stronger-than-peer capital position. However, challenges remain in the no-moat firm's near-term prospects. During the previous market downturn, CPIC steadily shifted toward focusing on the agent channel development and sales of longer-term and protection-type insurance. The firm saw industry-beating growth in ...
Net profit growth of no-moat China Pacific Insurance, or CPIC, slowed to 27% in the first half from 88% in the first quarter. The results were a bit disappointing on a decline in life insurance agent headcount, which might indicate weaker agent sales than peers, and underwriting losses in nonauto P&C insurance business. Similar to China Life, the robust bottom-line growth was primarily attributable to write-back of insurance reserve expenses. Excluding the CNY 3.7 billion decrease in insuran...
Net profit growth of no-moat China Pacific Insurance, or CPIC, slowed to 27% in the first half from 88% in the first quarter. The results were a bit disappointing on a decline in life insurance agent headcount, which might indicate weaker agent sales than peers, and underwriting losses in nonauto P&C insurance business. Similar to China Life, the robust bottom-line growth was primarily attributable to write-back of insurance reserve expenses. Excluding the CNY 3.7 billion decrease in insurance r...
Net profit growth of no-moat China Pacific Insurance, or CPIC, slowed to 27% in the first half from 88% in the first quarter. The results were a bit disappointing on a decline in life insurance agent headcount, which might indicate weaker agent sales than peers, and underwriting losses in nonauto P&C insurance business. Similar to China Life, the robust bottom-line growth was primarily attributable to write-back of insurance reserve expenses. Excluding the CNY 3.7 billion decrease in insurance r...
Net profit growth of no-moat China Pacific Insurance, or CPIC, slowed to 27% in the first half from 88% in the first quarter. The results were a bit disappointing on a decline in life insurance agent headcount, which might indicate weaker agent sales than peers, and underwriting losses in nonauto P&C insurance business. Similar to China Life, the robust bottom-line growth was primarily attributable to write-back of insurance reserve expenses. Excluding the CNY 3.7 billion decrease in insuran...
No-moat China Pacific Insurance recorded first-quarter net profit growth at 88%, a growth rate on par with China Life’s 120% growth. However, the results are not comparable with those of Ping An Insurance, given that Ping An was the only listed Chinese insurer to adopt IFRS 9 in the first quarter. Similar to China Life, the strong results were primarily attributable to write-back of insurance reserve and solid premium income growth. As first-quarter net profits amount to about 20% of our full-...
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