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China Taiping Insurance Holdings Co (HK:0966)
:0966

China Taiping Insurance Holdings Co (0966) AI Stock Analysis

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HK

China Taiping Insurance Holdings Co

(OTC:0966)

Rating:72Outperform
Price Target:
HK$18.00
▲(17.65%Upside)
The overall stock score of 72 reflects strong financial performance, effective cash management, and a favorable valuation. Although technical indicators show bullish momentum, overbought signals could indicate a potential near-term correction. The financial strength and undervaluation are key drivers of this score.
Positive Factors
Earnings
Net profit surged 87.5% driven by lower tax expenses, despite a decline in investment income.
Financial Performance
China Taiping reported robust full-year results with net profit rising 36.2% YoY to HK$8.43bn.
Valuation
The stock is trading at FY25E 0.11x P/EV and 0.53x P/B, with an average 3-year forward ROE at >13%, and a target price implies 29% upside.
Negative Factors
Investment Income
Investment income and fair value changes declined sharply, leading to a decline in pre-tax profit.

China Taiping Insurance Holdings Co (0966) vs. iShares MSCI Hong Kong ETF (EWH)

China Taiping Insurance Holdings Co Business Overview & Revenue Model

Company DescriptionChina Taiping Insurance Holdings Co. (0966) is a leading Chinese insurance company, operating primarily in the life insurance, property and casualty insurance, and reinsurance sectors. The company offers a comprehensive range of insurance products and services, including life, health, property, and casualty insurance, catering to both individual and corporate clients. With its extensive network and strong presence in Mainland China, Hong Kong, and other regions, China Taiping Insurance Holdings Co. aims to provide reliable and innovative insurance solutions to its diverse customer base.
How the Company Makes MoneyChina Taiping Insurance Holdings Co. generates revenue through various streams within the insurance industry. Primarily, the company earns income from premiums collected from policyholders across its life insurance and property and casualty insurance segments. Additionally, the company invests the premiums in various financial instruments to generate investment income, which is a significant contributor to its earnings. The reinsurance segment also provides a revenue stream by underwriting risks from other insurance companies. Strategic partnerships and collaborations further enhance its market reach and financial performance. The company's ability to manage risk and invest prudently is crucial to maintaining profitability and ensuring steady cash flow.

China Taiping Insurance Holdings Co Financial Statement Overview

Summary
China Taiping Insurance Holdings Co demonstrates strong financial performance with significant revenue growth, improved net profit margin, and strong cash flow generation. However, unusual EBIT margin changes and a low equity proportion suggest areas for further improvement.
Income Statement
78
Positive
The company shows strong revenue growth with a significant increase from 112.36 billion to 121 billion over the last year. Net profit margin improved from 4.78% to 6.97%, indicating better cost management. However, the EBIT margin fell from 17.72% to 100%, which requires further investigation as it seems unusual. Overall, the income statement reflects a positive growth trajectory with increasing profitability.
Balance Sheet
70
Positive
The balance sheet displays a stable debt-to-equity ratio, which decreased from 1.29 to 0.27, signifying improved leverage and financial health. The equity ratio stands at 5.02%, reflecting a low equity proportion, which is typical for insurance companies. Return on equity increased from 6.8% to 9.68%, indicating enhanced efficiency in generating profits from shareholders' equity. The balance sheet shows stability with some room for improving equity base.
Cash Flow
82
Very Positive
Operating cash flow remains strong and grew significantly from 134.6 billion to 125.95 billion. Free cash flow also shows a healthy growth rate, indicating robust cash generation capabilities. The operating cash flow to net income ratio is commendable, suggesting efficient cash conversion from earnings. The cash flow statement highlights strong liquidity and cash management practices.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue121.00B112.36B301.02B318.98B277.07B
Gross Profit121.00B136.07B301.02B318.98B277.07B
EBITDA23.73B19.85B13.31B16.45B20.59B
Net Income8.43B5.37B4.30B10.95B10.46B
Balance Sheet
Total Assets1.73T1.51T1.41T1.38T1.17T
Cash, Cash Equivalents and Short-Term Investments44.39B42.55B308.46B293.80B266.36B
Total Debt82.12B101.43B89.30B95.17B61.27B
Total Liabilities1.61T1.38T1.31T1.27T1.05T
Stockholders Equity87.07B78.99B75.51B88.07B90.65B
Cash Flow
Free Cash Flow116.24B127.67B88.72B94.48B110.33B
Operating Cash Flow125.95B134.60B95.02B98.63B114.20B
Investing Cash Flow-95.63B-130.95B-80.30B-99.62B-110.85B
Financing Cash Flow-27.91B34.99B-9.76B9.06B-945.65M

China Taiping Insurance Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.30
Price Trends
50DMA
12.46
Positive
100DMA
12.11
Positive
200DMA
12.17
Positive
Market Momentum
MACD
0.90
Negative
RSI
66.97
Neutral
STOCH
71.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0966, the sentiment is Positive. The current price of 15.3 is above the 20-day moving average (MA) of 14.11, above the 50-day MA of 12.46, and above the 200-day MA of 12.17, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 66.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0966.

China Taiping Insurance Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.02T7.15
7.07%11.71%37.04%
78
Outperform
$746.19B14.6016.75%3.72%7.04%88.41%
75
Outperform
HK$178.90B4.8026.08%2.18%-43.77%
75
Outperform
$1.08T4.6222.83%2.50%5.96%124.20%
72
Outperform
HK$54.99B7.409.88%1.96%17.76%38.31%
70
Outperform
$355.19B5.5816.47%4.39%11.99%54.60%
58
Neutral
$12.54B5.84-2.71%5.27%5.88%-56.03%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0966
China Taiping Insurance Holdings Co
15.30
7.26
90.30%
HK:1336
New China Life Insurance Co., Ltd. Class H
42.75
28.25
194.83%
HK:2318
Ping An Insurance Company of China
49.85
15.30
44.26%
HK:2628
China Life Insurance Co
18.84
8.08
75.17%
HK:2601
China Pacific Insurance (Group) Co
26.85
7.64
39.79%
HK:1299
AIA Group
70.40
18.74
36.28%

China Taiping Insurance Holdings Co Corporate Events

China Taiping Merges Nomination and Remuneration Committees
Jun 30, 2025

China Taiping Insurance Holdings Company Limited has announced the merger of its nomination and remuneration committees into a single entity, the Nomination and Remuneration Committee. This strategic move is aimed at streamlining governance and enhancing the efficiency of board operations, potentially strengthening the company’s industry positioning and providing clearer oversight for stakeholders.

The most recent analyst rating on (HK:0966) stock is a Hold with a HK$12.00 price target. To see the full list of analyst forecasts on China Taiping Insurance Holdings Co stock, see the HK:0966 Stock Forecast page.

China Taiping Merges Nomination and Remuneration Committees to Enhance Governance
Jun 30, 2025

China Taiping Insurance Holdings Co. has announced the merger of its nomination and remuneration committees into a single entity, the Nomination and Remuneration Committee. This strategic move is aimed at streamlining governance processes and enhancing the board’s efficiency. The committee will consist of a majority of independent non-executive directors and is tasked with reviewing the board’s structure and diversity, as well as identifying and recommending qualified candidates for board positions. This change is expected to strengthen the company’s corporate strategy and ensure a diverse and skilled board composition.

The most recent analyst rating on (HK:0966) stock is a Hold with a HK$12.00 price target. To see the full list of analyst forecasts on China Taiping Insurance Holdings Co stock, see the HK:0966 Stock Forecast page.

China Taiping Insurance Successfully Passes All AGM Resolutions
May 30, 2025

China Taiping Insurance Holdings Co announced that all resolutions proposed at its Annual General Meeting held on May 30, 2025, were passed by shareholders. This includes the re-election of directors, approval of financial statements, declaration of a final dividend, and re-appointment of KPMG as the independent auditor. The successful passage of these resolutions reflects shareholder confidence and supports the company’s governance and operational continuity.

The most recent analyst rating on (HK:0966) stock is a Hold with a HK$12.00 price target. To see the full list of analyst forecasts on China Taiping Insurance Holdings Co stock, see the HK:0966 Stock Forecast page.

China Taiping Insurance Unveils Q1 2025 Financial Performance
Apr 29, 2025

China Taiping Insurance Holdings Co announced its unaudited financial figures and solvency statement for the first quarter of 2025. The announcement highlights the financial performance of its subsidiaries in China, showing a net profit of RMB 299,240,000 and total assets amounting to RMB 128,449,536. The release of these figures is in compliance with regulatory requirements and provides stakeholders with preliminary insights into the company’s financial health and operational efficiency.

China Taiping Releases Q1 2025 Solvency Report
Apr 29, 2025

China Taiping Insurance Holdings Co. announced the release of its subsidiaries’ solvency report for the first quarter of 2025. The report, which is based on unaudited preliminary financial data, highlights the company’s financial stability and compliance with the China Risk Oriented Solvency System Phase II. This disclosure is expected to reassure shareholders and potential investors about the company’s financial health and regulatory adherence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 26, 2025