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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:80Outperform
Price Target:
HK$14.00
▲(9.89%Upside)
China Taiping Insurance Holdings Co scores well overall due to its strong financial performance, attractive valuation, and positive technical indicators. The company's robust revenue and profit growth, coupled with effective cash flow management, provide a solid foundation. While the technical analysis shows upward momentum, the high Stochastic level suggests caution for potential pullbacks. The low P/E ratio and reasonable dividend yield enhance the stock's attractiveness.
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.
Product strategy
Analyst reiterates BUY recommendation due to effective product mix transformation and resilient VNB outlook.
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 Company Limited, an investment holding company, underwrites various insurance and reinsurance products in the People's Republic of China and internationally. The company operates through three business segments: Life Insurance, Property and Casualty Insurance, and Reinsurance. The Life Insurance segment provides life insurance products, such as individual and group life insurance, health insurance, and accident insurance products and annuities. The Property and Casualty Insurance segment offers compulsory motor insurance, liability insurance, credit insurance, guarantee insurance, and short-term accident and health insurance, as well as the related reinsurance products. The Reinsurance segment provides property damage, life, marine cargo and hull, and miscellaneous non-marine reinsurance products. The company also engages in the assets management, insurance intermediary, financial leasing, property investment, and securities dealing and broking, as well as in elderly care investment businesses; and manages investment funds. In addition, it provides corporate and personal retirement insurance products; and back-to-back financing arrangement, as well as insurance broking and agency services. The company was formerly known as China Insurance International Holdings Company Limited and changed its name to China Taiping Insurance Holdings Company Limited in August 2009. The company was incorporated in 2000 and is headquartered in North Point, Hong Kong. China Taiping Insurance Holdings Company Limited is a subsidiary of China Taiping Insurance Group (HK) Company Limited.
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 shows strong financial performance, with robust revenue and profit growth, improved leverage, and effective cash flow management. However, the unusual EBIT margin requires further examination. The company is well-positioned in the life insurance sector but should work on enhancing its equity base for sustainable growth.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
121.00B112.36B301.02B318.98B277.07B
Gross Profit
121.00B136.07B301.02B318.98B277.07B
EBIT
121.00B19.91B1.88B4.89B7.73B
EBITDA
23.73B19.85B13.31B16.45B20.59B
Net Income Common Stockholders
8.43B5.37B4.30B10.95B10.46B
Balance SheetCash, Cash Equivalents and Short-Term Investments
44.39B42.55B308.46B293.80B266.36B
Total Assets
1.73T1.51T1.41T1.38T1.17T
Total Debt
82.12B101.43B89.30B95.17B61.27B
Net Debt
37.73B58.88B47.04B55.23B29.96B
Total Liabilities
1.61T1.38T1.31T1.27T1.05T
Stockholders Equity
87.07B78.99B75.51B88.07B90.65B
Cash FlowFree Cash Flow
116.24B127.67B88.72B94.48B110.33B
Operating Cash Flow
125.95B134.60B95.02B98.63B114.20B
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 Price12.74
Price Trends
50DMA
11.42
Positive
100DMA
11.55
Positive
200DMA
11.72
Positive
Market Momentum
MACD
0.34
Negative
RSI
66.91
Neutral
STOCH
89.30
Negative
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 12.74 is above the 20-day moving average (MA) of 12.07, above the 50-day MA of 11.42, and above the 200-day MA of 11.72, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 66.91 is Neutral, neither overbought nor oversold. The STOCH value of 89.30 is Negative, 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$45.79B6.169.88%2.56%17.76%38.31%
64
Neutral
$12.87B9.817.76%16985.65%12.28%-7.83%
$122.85B6.00
6.13%
$90.55B13.5516.75%2.69%
$42.57B5.9216.47%3.93%
$131.89B3.8622.83%4.04%
75
Outperform
HK$158.35B3.9226.08%4.25%-43.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0966
China Taiping Insurance Holdings Co
12.74
4.54
55.31%
PIAIF
Ping An Insurance Company of China
5.82
1.44
32.88%
AAIGF
AIA Group
8.37
1.13
15.61%
CHPXF
China Pacific Insurance (Group) Co
3.65
1.01
38.26%
CILJF
China Life Insurance Co
2.18
0.72
49.32%
HK:1336
New China Life Insurance Co., Ltd. Class H
35.75
21.36
148.44%

China Taiping Insurance Holdings Co Corporate Events

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.

China Taiping Appoints New Non-Executive Director to Strengthen Leadership
Mar 24, 2025

China Taiping Insurance Holdings Company Limited has announced the appointment of Mr. ZHOU Lianggang as a non-executive director and a member of the strategy and investment committee, effective March 24, 2025. This strategic appointment is expected to strengthen the company’s leadership and enhance its strategic planning capabilities, potentially impacting its market positioning positively.

China Taiping Insurance Announces Board Composition and Roles
Mar 24, 2025

China Taiping Insurance Holdings Co has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members serving on various committees such as the Audit Committee, Nomination and Remuneration Committee, Risk Management Committee, and Strategy and Investment Committee. This announcement underscores the company’s commitment to strong governance and strategic oversight, which may enhance its operational efficiency and stakeholder confidence.

China Taiping Reports Strong 2024 Financial Results Amid Strategic Advancements
Mar 24, 2025

China Taiping Insurance Holdings Company Limited announced its audited financial results for the year ended December 31, 2024, marking its 95th anniversary and a significant year under the 14th Five-Year Plan. Despite a challenging external environment, the company achieved its strongest financial performance in recent years, with total assets exceeding HK$1.7 trillion and a 36.2% increase in profit attributable to shareholders. The company demonstrated comprehensive improvement in operational quality and efficiency, with significant growth in new business contributions and investment income. Additionally, China Taiping advanced its strategic initiatives in technology finance, green finance, inclusive finance, ageing finance, and digital finance, aligning with national strategies and enhancing its industry positioning.

China Taiping Announces Final Dividend for 2024
Mar 24, 2025

China Taiping Insurance Holdings Co announced a final ordinary cash dividend of HKD 0.35 per share for the financial year ending December 31, 2024. The ex-dividend date is set for July 9, 2025, with the payment date scheduled for July 22, 2025. This announcement reflects the company’s financial strategy and commitment to delivering shareholder value, potentially reinforcing its market position and investor confidence.

China Taiping Completes RMB20 Billion Bond Issuance to Boost Solvency
Mar 21, 2025

China Taiping Insurance Holdings Company Limited announced the completion of the issuance of undated capital bonds by its subsidiary, Taiping Life Insurance Company Limited, amounting to RMB20 billion. The proceeds will be used to replenish core tier 2 capital, enhancing TPL’s solvency and supporting its sustainable and steady development.

China Taiping Insurance to Review Annual Results and Dividend
Mar 10, 2025

China Taiping Insurance Holdings Co has announced a board meeting scheduled for March 24, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting could have implications for the company’s financial performance and shareholder returns, potentially impacting its market position and stakeholder interests.

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.