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)

Market Cap

$42.57B

Dividend Yield3.93%

Average Volume (3M)0.00

Price to Earnings (P/E)5.9

Beta (1Y)0.27

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees94,990

SectorFinancial

Sector Strength81

IndustryInsurance - Life

Share Statistics

EPS (TTM)0.14

Shares Outstanding2,775,300,000

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio-0.78

Price to Book (P/B)0.74

Price to Sales (P/S)0.00

P/FCF Ratio2.06

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.14

Price Target Upside13.42% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

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)

% 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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
364.37B	311.48B	324.31B	454.95B	439.83B	421.67B
	Gross Profit
364.99B	311.48B	324.31B	454.95B	439.83B	421.67B
	EBIT
36.15B	55.56B	32.06B	24.55B	25.53B	25.43B
	EBITDA
13.45B	0.00	-3.36B	28.78B	29.67B	29.44B
	Net Income Common Stockholders
42.83B	44.96B	27.26B	24.61B	26.83B	24.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.02B	29.36B	30.93B	748.22B	677.93B	617.04B
	Total Assets
2.92T	2.83T	2.34T	2.18T	1.95T	1.77T
	Total Debt
12.79B	13.01B	13.38B	12.72B	13.10B	13.42B
	Net Debt
-34.23B	-16.35B	-18.07B	-20.42B	-19.45B	-7.46B
	Total Liabilities
2.63T	2.52T	2.08T	1.94T	1.71T	1.55T
	Stockholders Equity
263.61B	291.42B	249.59B	228.45B	226.74B	215.22B
Cash Flow		Free Cash Flow
126.08B	150.53B	133.88B	138.81B	104.72B	104.44B
	Operating Cash Flow
40.04B	154.40B	137.86B	147.91B	108.41B	108.06B
	Investing Cash Flow
-276.36B	-209.90B	-161.36B	-168.98B	-66.09B	-136.07B
	Financing Cash Flow
114.34B	61.34B	3.29B	28.48B	-31.37B	21.45B

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
CHPXF		$42.57B	5.92	16.47%	3.93%	―	―
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%
PIAIF		$122.85B	6.00		6.13%	―	―
CIIHF		$50.27B	―	8.44%	3.79%	―	―
CINSF		$5.83B	5.66	9.88%	2.56%	―	―
PINXF		$46.75B	4.55	17.85%	4.59%	―	―
1336	75 Outperform	HK$158.35B	3.92	26.08%	4.25%	-43.77%	―

* Financial Sector Average

Performance Comparison

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.