The general evaluation of CHINA LIFE INSURANCE (HK), a company active in the Life Insurance industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 18, 2022, the closing pric...
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....
KEY HIGHLIGHTS CHINA Economics Economic Activity Jun 19 economic activity indicators top estimates but 2Q19 GDP growth trends lower. Initiate Coverage Insurance Good timing for P&C segment, car sales expected to rebound in 2H19 Sector Property Weekly: Financing channel may not tighten further. Update Wison Engineering Services (2236 HK/NOT RATED/HK$1.02) A leading private player in domestic energy engineering market HONG KONG Small/Mid Cap Highlights Union Medical Healthcare (...
No-moat China Life’s first-quarter results reported a 93% year-on-year growth in net profits and 28% growth in new business value, or NBV. Such growth was higher than our prior expectation. However, after taking a deeper look into the underlying drivers, we believe the company is unlikely to maintain such strong momentum in the following quarters. The glittering net profit growth was attributable to a strong year-on-year recovery in both investment income and premium income, which surging 93% ...
No-moat China Life’s first-quarter results reported a 93% year-on-year growth in net profits and 28% growth in new business value, or NBV. Such growth was higher than our prior expectation. However, after taking a deeper look into the underlying drivers, we believe the company is unlikely to maintain such strong momentum in the following quarters. The glittering net profit growth was attributable to a strong year-on-year recovery in both investment income and premium income, which surging 93% ...
Following no-moat China Life’s investor conference held on March 29, we’re sticking to our HKD 23 and CNY 21 per share fair value estimate for H shares and A shares, respectively. The 65% drop in 2018 net profit is in line with the 50% to 70% decline as announced in its earlier earning alert, due to a 26% decline in investment income as total investment return fell sharply to 3.29% from 5.16%. While new business value or NBV performance was weaker than our expectation. NBV declined by 17.6%,...
Following no-moat China Life’s investor conference held on March 29, we’re sticking to our HKD 23 and CNY 21 per share fair value estimate for H shares and A shares, respectively. The 65% drop in 2018 net profit is in line with the 50% to 70% decline as announced in its earlier earning alert, due to a 26% decline in investment income as total investment return fell sharply to 3.29% from 5.16%. While new business value or NBV performance was weaker than our expectation. NBV declined by 17.6%,...
Following no-moat China Life’s investor conference held on March 29, we’re sticking to our HKD 23 and CNY 21 per share fair value estimate for H shares and A shares, respectively. The 65% drop in 2018 net profit is in line with the 50% to 70% decline as announced in its earlier earning alert, due to a 26% decline in investment income as total investment return fell sharply to 3.29% from 5.16%. While new business value or NBV performance was weaker than our expectation. NBV declined by 17.6%,...
Following no-moat China Life’s investor conference held on Friday, we’re sticking to our HKD 23 and CNY 21 per share fair value estimate for H shares and A shares, respectively. The new management team revealed a strategic transformation plan over the next three to five years. We are encouraged by its revamped management incentive program and efforts to beef up sales capacity for protection type products in bancassurance and group insurance channels. The stock is fairly valued, trading at 0....
Following no-moat China Life’s investor conference held on Friday, we’re sticking to our HKD 23 and CNY 21 per share fair value estimate for H shares and A shares, respectively. The new management team revealed a strategic transformation plan over the next three to five years. We are encouraged by its revamped management incentive program and efforts to beef up sales capacity for protection type products in bancassurance and group insurance channels. The stock is fairly valued, trading at 0....
As the dominant life insurer with 20% market share, China Life Insurance benefits from enviable scale and a well-known brand. However, its large scale and state-owned nature could be a double-edged sword, hampering a swift transition toward value-oriented growth amid fast-changing market dynamics. Given mounting difficulties and heightening rivalry, we believe the company has yet to establish an economic moat.Being the largest and oldest state-owned life insurer, China Life enjoys a reputable br...
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 ...
KEY HIGHLIGHTS CHINA Sector Automobile 2019: Darkness before dawn. Coal Impact from Shenmu coal mine accident. Update China Oriental Group (581 HK/BUY/HK$5.02/Target: HK$5.53) Earnings under pressure in 2019 while share price has hit bottom. TRADERS’ CORNER China Life (2628 HK): Trading Buy Range Tsingtao Brewery (168 HK): Trading Buy Range
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 Life's disappointing third-quarter results, we have reduced our fair value estimate to CNY 21 from CNY 23 per share for the A shares and to HKD 23 from HKD 26 per share for the H shares to factor in our dimmer outlooks for both premium growth and investment returns over the next two years. The H shares dropped 6.3% and are trading at a 30% discount to our new fair value estimate on the day after the results announcement. We believe China Life’s stock is undervalued, as ...
As the dominant life insurer with 19% market share, China Life Insurance benefits from enviable scale and a well-known brand. However, its large scale and state-owned nature could be a double-edged sword, hampering a swift transition toward value-oriented growth amid fast-changing market dynamics. Given mounting difficulties and heightening rivalry, we believe the company has yet to establish an economic moat.Being the largest and oldest state-owned life insurer, China Life enjoys a reputable br...
Following no-moat China Life's disappointing third-quarter results, we have reduced our fair value estimate to CNY 21 from CNY 23 per share for the A shares and to HKD 23 from HKD 26 per share for the H shares to factor in our dimmer outlooks for both premium growth and investment returns over the next two years. The H shares dropped 6.3% and are trading at a 30% discount to our new fair value estimate on the day after the results announcement. We believe China Life’s stock is undervalued, as ...
No-moat China Life's first-half 2018 34.6% year-on-year net profit growth was in line with our expectation, representing 52% of our full-year forecast. The results also highlighted strong business mix improvement as single-premium product shrank by CNY 52 billion from 2017, representing 3% of total premium, versus 18% in 2017. However, growth in new business value, or NBV, and embedded value were weaker than we expected. Given no changes to our key assumption, we retain our CNY 23 per share fair...
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