China Taiping Insurance Holdings Co (0966) AI Stock Analysis

• Market Cap: HK$59.73B
• Dividend Yield: 2.11%
• Average Volume (3M): 14.98M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.48
• Revenue Growth: 17.76%
• EPS Growth: 38.31%
• Country: HK
• Employees: 62,266
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Life
• EPS (TTM): 0.53
• Shares Outstanding: 3,594,018,600
• 10 Day Avg. Volume: 13,476,173
• 30 Day Avg. Volume: 14,976,414
• PEG Ratio: -0.16
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$12.40
• Price Target Upside: -25.37% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: HK$18.00 ▲(8.30%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

Net Profit

Net profit surged 87.5% driven by lower tax expenses, despite a decline in investment income.

Valuation and Target Price

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 Business Overview & Revenue Model

Company Description

China 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 Money

China 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.00B	112.36B	301.02B	318.98B	277.07B
Gross Profit	121.00B	136.07B	301.02B	318.98B	277.07B
EBITDA	23.73B	19.85B	13.31B	16.45B	20.59B
Net Income	8.43B	5.37B	4.30B	10.95B	10.46B
Balance Sheet
Total Assets	1.73T	1.51T	1.41T	1.38T	1.17T
Cash, Cash Equivalents and Short-Term Investments	44.39B	42.55B	308.46B	293.80B	266.36B
Total Debt	82.12B	101.43B	89.30B	95.17B	61.27B
Total Liabilities	1.61T	1.38T	1.31T	1.27T	1.05T
Stockholders Equity	87.07B	78.99B	75.51B	88.07B	90.65B
Cash Flow
Free Cash Flow	116.24B	127.67B	88.72B	94.48B	110.33B
Operating Cash Flow	125.95B	134.60B	95.02B	98.63B	114.20B
Investing Cash Flow	-95.63B	-130.95B	-80.30B	-99.62B	-110.85B
Financing Cash Flow	-27.91B	34.99B	-9.76B	9.06B	-945.65M

China Taiping Insurance Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 16.62 is above the 20-day moving average (MA) of 15.49, above the 50-day MA of 13.70, and above the 200-day MA of 12.33, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 72.53 is Negative, neither overbought nor oversold. The STOCH value of 92.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2318	79 Outperform	$1.06T	7.58		0.11%	11.71%	37.04%
1299	78 Outperform	$729.24B	14.27	16.75%	0.07%	7.04%	88.41%
1336	75 Outperform	HK$186.48B	4.83	26.08%	0.19%	-43.77%	―
2628	75 Outperform	$1.06T	4.79	22.83%	0.31%	5.96%	124.20%
0966	72 Outperform	HK$59.73B	8.04	9.88%	2.11%	17.76%	38.31%
2601	70 Outperform	HK$353.99B	6.22	16.47%	0.15%	11.99%	54.60%
Sector *	68 Neutral	$16.89B	11.69	9.78%	3.90%	11.76%	-7.55%

China Taiping Insurance Holdings Co Corporate Events

China Taiping Merges Nomination and Remuneration Committees

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

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

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

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

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.