New China Life Insurance Co., Ltd. Class H (HK:1336)
:1336
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New China Life Insurance Co., Ltd. Class H
(1336)
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Rating:77Outperform
Price Target:
HK$58.00
â–¼(-4.68% Downside)
Action:Reiterated
Date:05/03/26
The score is driven mainly by strong financial performance (profitability and cash generation) and very attractive valuation (low P/E and high yield). Earnings-call commentary is broadly positive with clear strategic execution, while technical indicators are mixed and leverage/revenue volatility remain key risks.
Positive Factors
Strong cash generation and earnings quality
Free cash flow that nearly matches reported net income (TTM ~0.98x) indicates durable cash conversion. This funds dividends, reserve builds, technology and distribution investments, and internal capital needs, reducing reliance on external financing and supporting long-term solvency flexibility.
Negative Factors
Elevated and volatile leverage
A marked step-up in leverage raises balance-sheet sensitivity to earnings shocks or market downturns. Elevated debt-to-equity reduces financial flexibility, could elevate funding costs under stress, and increases the likelihood of asset rebalancing or external capital calls if profitability or capital metrics weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and earnings quality
Free cash flow that nearly matches reported net income (TTM ~0.98x) indicates durable cash conversion. This funds dividends, reserve builds, technology and distribution investments, and internal capital needs, reducing reliance on external financing and supporting long-term solvency flexibility.
Read all positive factors
New China Life Insurance Co., Ltd. Class H (1336) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$190.34B
Dividend Yield5.24%
Average Volume (3M)14.96M
Price to Earnings (P/E)4.9
Beta (1Y)1.55
Revenue Growth39.01%
EPS Growth38.60%
CountryHK
Employees28,675
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)11.71
Shares Outstanding1,034,107,300
10 Day Avg. Volume19,656,877
30 Day Avg. Volume14,958,512
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.36
Price to Sales (P/S)1.16
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$52.50Price Target Upside-13.72% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)10.27
Revenue Forecast (FY)HK$160.01B
New China Life Insurance Co., Ltd. Class H Business Overview & Revenue Model
Company Description
New China Life Insurance Company Ltd. provides life insurance products and services to individuals and institutions in the People's Republic of China. It operates through three segments: Individual Insurance Business, Group Insurance Business, and...
How the Company Makes Money
New China Life generally makes money through a combination of (1) insurance underwriting and fees and (2) investment income on assets it manages to back policyholder liabilities.
1) Insurance underwriting income and policy-related charges
- Premi...
New China Life Insurance Co., Ltd. Class H Earnings Call Summary
Earnings Call Date:Mar 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive picture: the company reported record highs across assets, premiums, profit, EV and NBV with strong investment returns, marked improvement in persistency and a successful push into participating products and bancassurance. Management acknowledged challenges—solvency pressure from low long-term yields, potential margin effects from the shift to participating business, market/interest-rate uncertainty, and tighter regulatory requirements—but also described concrete mitigation steps (asset-liability matching, diversified investments, capital measures, technology and service investments). Given the scale and materiality of the reported achievements and clear management plans to address risks, the overall tone is constructive and growth-oriented.Positive Updates
Record Asset and Market Value Growth
Total assets reached close to RMB 1.9 trillion, up 12.2% year-on-year; total market value surpassed RMB 200 billion; share price delivered strong gains (management cited double-digit increases) reflecting improved investor confidence.
Negative Updates
Solvency Pressure from Low-Rate Environment
Although comprehensive solvency margin ratio remained above 200%, management highlighted periodic pressure from sustained downward shifts in long-dated government bond yields (750-day moving average), requiring active capital measures (internal generation, external replenishment, asset allocation optimization).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Asset and Market Value Growth
Total assets reached close to RMB 1.9 trillion, up 12.2% year-on-year; total market value surpassed RMB 200 billion; share price delivered strong gains (management cited double-digit increases) reflecting improved investor confidence.
Read all positive updates
Company Guidance
Management guidance for 2026 stresses steady, high‑quality growth that balances value and volume by doubling down on a customer‑centered strategy, accelerating the shift to participating whole‑life, annuity and health products, and pushing channel transformation across individual, bancassurance and Internet channels; key 2025 baselines they plan to build on include total assets ≈RMB1.9tn (+12.2%), GWP RMB195.9bn (+14.9%), EV RMB287.8bn (+11.4%), net profit RMB36.3bn (+38.3%), NBV RMB9.8bn (+57.4%) with NBV margin 16.2%, total investment income RMB104.3bn (6.6% yield), and comprehensive solvency margin >200%. Specific operational priorities are to grow participating sales (par FYP RMB11.9bn in 2025; Q4 par mix 77%), expand bancassurance (2025 bank FYP RMB72.1bn, long‑term FYP RMB37.9bn +52%, NBV RMB5.27bn +111%), sustain persistency (13‑month 97.1%, 25‑month 93.3%) and low surrenders (1.5%), optimize asset‑liability matching (including three pilot funds totalling RMB46.25bn and greater allocation to long‑term equity/PE/OCI), maintain capital adequacy via internal and external measures, and scale tech/AI (11 large models and digital ambassadors, target digital productivity ≈3,000 FTE via seven virtual employee roles) while preserving strong service metrics (one‑minute policy service 96%, paid >RMB42bn in maturities/annuities and RMB14.7bn in claims).New China Life Insurance Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 113.40B | 130.80B | 128.86B | 70.10B | 106.89B | 222.00B |
| Gross Profit | 113.40B | 130.80B | 128.86B | 70.10B | 96.72B | 207.41B |
| EBITDA | 42.45B | 44.65B | 29.88B | 67.84B | 99.86B | 17.29B |
| Net Income | 36.54B | 35.34B | 26.23B | 8.71B | 21.50B | 14.95B |
Balance Sheet | ||||||
| Total Assets | 1.85T | 1.90T | 1.69T | 1.40T | 1.26T | 1.13T |
| Cash, Cash Equivalents and Short-Term Investments | 36.16B | 44.69B | 38.46B | 21.81B | 393.24B | 418.90B |
| Total Debt | 20.92B | 214.41B | 31.10B | 21.02B | 10.86B | 11.04B |
| Total Liabilities | 1.73T | 1.79T | 1.60T | 1.30T | 1.15T | 1.02T |
| Stockholders Equity | 123.56B | 111.59B | 96.24B | 105.07B | 102.88B | 108.50B |
Cash Flow | ||||||
| Free Cash Flow | 135.34B | 152.64B | 95.19B | 89.46B | 87.60B | 70.59B |
| Operating Cash Flow | 136.87B | 154.09B | 96.29B | 91.55B | 89.39B | 73.85B |
| Investing Cash Flow | -63.60B | -135.31B | -141.77B | -156.65B | -90.47B | -106.53B |
| Financing Cash Flow | -78.89B | -14.35B | 62.03B | 69.29B | 2.84B | 35.24B |
New China Life Insurance Co., Ltd. Class H Technical Analysis
Negative
60.85
Price Trends
49.83
Negative
54.41
Negative
51.15
Negative
Market Momentum
-0.44
Positive
37.68
Neutral
10.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1336, the sentiment is Negative. The current price of 60.85 is above the 20-day moving average (MA) of 50.42, above the 50-day MA of 49.83, and above the 200-day MA of 51.15, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 10.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1336.
New China Life Insurance Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$1.03T | 7.84 | 31.07% | 3.42% | 36.40% | 44.74% | |
77 Outperform | HK$190.34B | 4.89 | 35.23% | 5.24% | 39.01% | 38.60% | |
70 Outperform | HK$73.46B | 2.48 | 29.19% | 1.81% | 11.51% | 250.65% | |
69 Neutral | HK$348.55B | 6.78 | 18.16% | 3.28% | 10.54% | 27.66% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | HK$899.48B | 17.34 | 15.16% | 2.16% | 9.97% | -4.43% | |
64 Neutral | HK$1.11T | 9.14 | 13.93% | 4.25% | >-0.01% | 6.63% |
* Financial Sector Average
HK:1336
New China Life Insurance Co., Ltd. Class H
48.00
18.32
61.74%
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Ping An Insurance Company of China
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35.62%
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23.32
37.19%
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China Pacific Insurance (Group) Co
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35.91%
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China Life Insurance Co
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8.73
74.52%
New China Life Insurance Co., Ltd. Class H Corporate Events
New China Life Insurance Boosts Q1 Profit Despite Revenue Decline
Apr 29, 2026
New China Life Insurance Company Ltd. reported its unaudited first-quarter 2026 results, showing operating income of RMB 22.13 billion, down 33.7% year on year, while net profit attributable to shareholders rose 10.5% to RMB 6.50 billion. Earnings...
New China Life Insurance Sets Board Meeting to Approve Q1 2026 Results
Apr 17, 2026
New China Life Insurance Company Ltd., a leading Chinese life insurer listed in Hong Kong, offers life insurance and long-term savings products to retail customers across mainland China through its subsidiaries. The group focuses on providing fina...
New China Life Insurance Proposes RMB 2.06 Final Dividend for 2025
Mar 27, 2026
New China Life Insurance Co., Ltd. has proposed a final ordinary dividend of RMB 2.06 per share for the financial year ended 31 December 2025, reinforcing its capital-return track record to shareholders. The dividend, payable on 7 August 2026 subj...
New China Life Insurance Unveils 2025 Audited Results and Higher Cash Dividend Payout
Mar 27, 2026
New China Life Insurance has released its audited results for the year ended 31 December 2025, with Deloitte Touche Tohmatsu issuing a standard unqualified opinion on the consolidated financial statements. The board confirms the accuracy of the an...
New China Life Schedules March 2026 Board Meeting to Approve 2025 Results and Dividend
Mar 17, 2026
New China Life Insurance Company Ltd. has scheduled a board meeting for 27 March 2026 to review and approve the consolidated annual results for the year ended 31 December 2025, along with the plan for publishing those results. The board will also ...
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.