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China Pacific Insurance (Group) Co Ltd Class H (CHPXF)
OTHER OTC:CHPXF

China Pacific Insurance (Group) Co (CHPXF) AI Stock Analysis

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Positive Factors
Earnings
Net profit came in at RMB45.0bn, up 64.9% YoY, at the upper-end of profit alert by 55%-70%.
Investment Confidence
Analyst maintains BUY with target price at HK$34.0, implying confidence in the long-term investment value.
Value Growth
CPIC reported a beat on Life OPAT, NBV growth and CSM, indicating the insurer’s strong capability to capitalize on value growth and effective A/L management amid a low interest rate environment.
Negative Factors
Market-to-Market Losses
The underperformance in profitability and NAV was dragged by bonds’ market-to-market losses given a rising interest yield.
Profitability
Net profit down 18.1% YoY as a miss, with net asset value sliding 9.5% versus year-start, marking the first quarterly decline on record.
Underwriting Performance
Underwriting profit dropped 35.5% YoY to RMB2.67bn in FY24, with 2H implied UW loss at RMB 427mn.

China Pacific Insurance (Group) Co (CHPXF) vs. SPDR S&P 500 ETF (SPY)

China Pacific Insurance (Group) Co Business Overview & Revenue Model

Company DescriptionChina Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People's Republic of China. It operates through Life and Health Insurance, Property and Casualty Insurance, and Other Businesses segments. The company offers life, health, and accident insurance products, etc.; liability insurance; credit and guarantee insurance; short-term health insurance and casualty insurance; property insurance; agricultural insurance; and individual and group pension and annuity products, as well as insurance funds investment and reinsurance services. It is also involved in the management of capital and insurance funds; outsourcing of fund management; and other asset management activities, as well as provision of advisory services relating to asset management. In addition, the company is involved in the property management and construction; real estate activities; elderly service and medical consulting services; and seniors and disabled care services. It sells its products directly, as well as through insurance agents and brokers, bancassurance, telemarketing, and internet Sales. The company was founded in 1991 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes Money

China Pacific Insurance (Group) Co Earnings Call Summary

Earnings Call Date:Apr 26, 2025
(Q3-2024)
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% Change Since: 0.00%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in net profit and new business value, alongside improved product mix and asset management growth. However, these positive aspects were balanced by challenges in CPIC Life revenue, a decrease in Group Channel GWP, and pressures on net investment yield, with additional impacts from catastrophes on P&C business.
Q3-2024 Updates
Positive Updates
Increased Net Profit
The group realized a net profit of CNY 38.3 billion, up 65.5% year-on-year.
Growth in CPIC P&C
CPIC P&C delivered CNY 145.2 billion in revenue, up 4.1% year-on-year.
Growth in New Business Value
CPIC Life's new business value was CNY 14.2 billion, up 37.9% year-on-year.
Improved Product Mix
The share of health protection and participating products doubled starting from September.
Growth in CPIC P&C Non-auto Premiums
Non-auto premiums grew by 12.2% year-on-year.
Asset Management Growth
Total AUM was CNY 2.58 trillion, 14.9% higher than the end of last year.
Negative Updates
Decline in CPIC Life Revenue
CPIC Life's revenue was CNY 62.3 billion, down 2.5% year-on-year.
Challenges in Group Channel
Group Channel's GWP decreased by 12.8% year-on-year.
Flat Combined Ratio
CPIC P&C's combined ratio was 98.7%, unchanged from the same period last year.
Pressure on Net Investment Yield
The net investment yield was 2.9%, down 0.1 percentage points year-on-year.
Impact of Catastrophes on P&C
Catastrophe losses impacted the combined ratio, particularly affecting non-auto insurance.
Company Guidance
In the Q3 2024 earnings call for CPIC Group, the executives provided a comprehensive overview of the company's performance metrics and strategic focuses. The group reported an insurance revenue of CNY 209.4 billion, a 2.3% increase year-on-year, with CPIC Life contributing CNY 62.3 billion, despite a 2.5% decrease, and CPIC P&C delivering CNY 145.2 billion, up 4.1%. The net profit soared to CNY 38.3 billion, marking a significant 65.5% rise. CPIC Life's new business value saw a remarkable 37.9% growth to CNY 14.2 billion, with a new business margin improvement of 6.2 percentage points, reaching 20.0%. The persistency ratios improved, with the 13-month ratio increasing to 97.5% and the 25-month ratio to 92.3%. The total assets under management rose by 14.9% to CNY 2.58 trillion, although the net investment yield slightly decreased by 0.1 percentage points to 2.9%. The call also highlighted strategies like "BIG HEALTH," "BIG REGION," and "BIG DATA" to enhance customer management and business quality, along with digital innovations in AI for auditing and claims processing. Looking forward, CPIC aims to maintain high-quality growth, optimize service processes, and focus on digital transformation and risk management.

China Pacific Insurance (Group) Co Financial Statement Overview

Summary
China Pacific Insurance (Group) Co demonstrates robust financial health with strong revenue growth and stable profit margins. The balance sheet is solid with low leverage and high equity returns, while cash flow generation remains strong despite some volatility. Overall, the company is well-positioned financially, with a stable growth trajectory and strong capital structure, though it faces potential cash flow fluctuations.
Income Statement
75
Positive
The income statement for China Pacific Insurance (Group) Co reveals moderate revenue growth with fluctuating profit margins. The TTM (Trailing-Twelve-Months) data shows a Gross Profit Margin of approximately 100% due to the nature of the insurance industry, where revenue is recognized as gross profit. However, the Net Profit Margin is relatively stable at around 11.76% in the TTM, showing a slight decrease from the previous year. The Revenue Growth Rate from the previous year to TTM is approximately 16.98%, indicating solid growth. EBIT and EBITDA margins are consistent with industry norms.
Balance Sheet
80
Positive
The balance sheet exhibits a strong equity position with a Debt-to-Equity Ratio of approximately 0.05 in the TTM, indicating low leverage. The Return on Equity (ROE) is healthy at 16.24% in the TTM, reflecting efficient use of equity capital. The Equity Ratio stands at 9.03%, suggesting a stable capital structure. Overall, the company maintains a strong financial position with adequate equity and low debt levels.
Cash Flow
70
Positive
The cash flow analysis shows significant Free Cash Flow generation, although the Free Cash Flow Growth Rate is negative due to a high base effect from the previous year. The Operating Cash Flow to Net Income Ratio is strong at 0.93 in the TTM, indicating good cash conversion. However, the Free Cash Flow to Net Income Ratio at 2.94 suggests potential volatility in cash flows, which could impact future cash availability.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
364.37B311.48B324.31B454.95B439.83B421.67B
Gross Profit
364.99B311.48B324.31B454.95B439.83B421.67B
EBIT
36.15B55.56B32.06B24.55B25.53B25.43B
EBITDA
13.45B0.00-3.36B28.78B29.67B29.44B
Net Income Common Stockholders
42.83B44.96B27.26B24.61B26.83B24.58B
Balance SheetCash, Cash Equivalents and Short-Term Investments
47.02B29.36B30.93B748.22B677.93B617.04B
Total Assets
2.92T2.83T2.34T2.18T1.95T1.77T
Total Debt
12.79B13.01B13.38B12.72B13.10B13.42B
Net Debt
-34.23B-16.35B-18.07B-20.42B-19.45B-7.46B
Total Liabilities
2.63T2.52T2.08T1.94T1.71T1.55T
Stockholders Equity
263.61B291.42B249.59B228.45B226.74B215.22B
Cash FlowFree Cash Flow
126.08B150.53B133.88B138.81B104.72B104.44B
Operating Cash Flow
40.04B154.40B137.86B147.91B108.41B108.06B
Investing Cash Flow
-276.36B-209.90B-161.36B-168.98B-66.09B-136.07B
Financing Cash Flow
114.34B61.34B3.29B28.48B-31.37B21.45B

China Pacific Insurance (Group) Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$42.57B5.9216.47%3.93%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
$122.85B6.00
6.13%
$50.27B8.44%3.79%
$5.83B5.669.88%2.56%
$46.75B4.5517.85%4.59%
75
Outperform
HK$158.35B3.9226.08%4.25%-43.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHPXF
China Pacific Insurance (Group) Co
3.65
1.01
38.26%
PIAIF
Ping An Insurance Company of China
6.01
1.34
28.69%
CIIHF
CITIC Securities Co
2.72
1.27
87.59%
CINSF
China Taiping Insurance Holdings Co
1.50
0.44
41.51%
PINXF
People's Insurance Co (Group) of China
0.67
0.36
116.13%
HK:1336
New China Life Insurance Co., Ltd. Class H
36.10
21.71
150.87%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.