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China Reinsurance (Group) Corp. Class H (HK:1508)
:1508

China Reinsurance (Group) Corp. Class H (1508) AI Stock Analysis

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HK

China Reinsurance (Group) Corp. Class H

(Frankfurt:1508)

Rating:66Neutral
Price Target:
China Reinsurance (Group) Corp. Class H exhibits strong financial performance with solid revenue growth and operational efficiency, although cash flow challenges persist. The valuation is attractive with a low P/E ratio and high dividend yield, making it appealing to value investors. Technical indicators are mixed, suggesting potential short-term gains but caution in the longer term. Overall, the stock presents a moderate investment opportunity with strengths in valuation and income growth, tempered by liquidity concerns.

China Reinsurance (Group) Corp. Class H (1508) vs. iShares MSCI Hong Kong ETF (EWH)

China Reinsurance (Group) Corp. Class H Business Overview & Revenue Model

Company DescriptionChina Reinsurance (Group) Corporation, together with its subsidiaries, operates as a reinsurance company in the People's Republic of China and internationally. It operates through Property and Casualty Reinsurance, Life and Health Reinsurance, Primary Property and Casualty Insurance, Asset Management, and Others segments. The company offers reinsurance products, including motor, commercial and household property, engineering, marine hull, cargo, liability, credit and guarantee, personal accident, health, agriculture, life and annuity, space and aviation, energy, nuclear, etc.; and insurance agency services, such as risk identification, assessment and consulting, insurance program design, insurance procurement, insurance policy management, claim management, disaster and accident prevention management, overall risk management, and reinsurance arrangement products. It also provides asset management, insurance brokerage, risk evaluation and management, underwriting agency, risk advisory, management consulting, and investment management services; and issues bonds. In addition, the company is involved in the e-commerce business; and offers multi-asset investment products, such as project-based financing programs, asset-backed securities, infrastructure investment programs, and real estate investment programs. The company was founded in 1949 and is headquartered in Beijing, the People's Republic of China. China Reinsurance (Group) Corporation is a subsidiary of Central Huijin Investment Ltd.
How the Company Makes MoneyChina Re makes money primarily through its reinsurance services by charging premiums to its client insurance companies for assuming risk on their behalf. The company earns revenues from various reinsurance segments such as property and casualty reinsurance, which covers catastrophic events and liabilities, and life and health reinsurance, which provides solutions for life insurance and health-related risks. Additionally, China Re generates income through investment activities, utilizing the reserves from collected premiums to invest in various financial instruments. The company's earnings are further bolstered by strategic partnerships and collaborations with global insurers, expanding its market reach and service offerings.

China Reinsurance (Group) Corp. Class H Financial Statement Overview

Summary
Overall, China Reinsurance (Group) Corp. Class H demonstrates a robust revenue growth trajectory, supported by strong operational efficiency. The balance sheet indicates low leverage and a balanced capital structure. However, cash flow performance has weakened, with a notable decline in both operating and free cash flows, posing potential liquidity challenges. The company should focus on improving cash generation to support sustainable growth.
Income Statement
65
Positive
The income statement shows a mixed performance with a recent increase in total revenue from 94.96 billion to 103.66 billion, indicating a revenue growth rate of 9.16%. However, the net profit margin of 10.19% is moderate, and the EBIT margin has improved significantly to 96.47%, demonstrating strong operational efficiency. The absence of EBITDA in the most recent year limits a full assessment of operating performance.
Balance Sheet
70
Positive
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.13, indicating low leverage. The equity ratio stands at 20.31%, suggesting a balanced capital structure. Return on equity is moderate at 10.22%, demonstrating effective use of equity but with room for improvement.
Cash Flow
55
Neutral
The cash flow statement reveals a decline in operating cash flow from 16.29 billion to 10.35 billion. The free cash flow growth rate is negative, declining from 15.86 billion to 9.91 billion. The operating cash flow to net income ratio is below 1 at 0.98, indicating potential challenges in converting profits into cash.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
85.54B94.96B167.41B163.95B168.10B
Gross Profit
85.54B94.96B167.41B163.95B168.10B
EBIT
13.80B-6.68B4.89B8.82B8.38B
EBITDA
0.00171.29M1.85B-1.65B-1.30B
Net Income Common Stockholders
10.56B5.65B1.87B5.95B5.71B
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.01B10.30B10.97B18.74B10.22B
Total Assets
508.35B459.73B520.69B499.80B453.58B
Total Debt
13.97B15.43B17.96B27.23B27.79B
Net Debt
6.68B5.14B6.99B8.49B17.57B
Total Liabilities
395.68B357.55B426.02B397.71B350.68B
Stockholders Equity
103.26B93.25B86.02B92.71B93.03B
Cash FlowFree Cash Flow
9.91B15.86B11.31B9.12B32.34B
Operating Cash Flow
10.35B16.29B11.71B9.56B33.24B
Investing Cash Flow
-18.56B-14.83B-6.80B-15.57B-47.34B
Financing Cash Flow
4.62B999.20M-12.20B14.01B7.96B

China Reinsurance (Group) Corp. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.05
Price Trends
50DMA
0.95
Positive
100DMA
0.94
Positive
200DMA
0.88
Positive
Market Momentum
MACD
0.03
Negative
RSI
66.67
Neutral
STOCH
91.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1508, the sentiment is Positive. The current price of 1.05 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 0.95, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1508.

China Reinsurance (Group) Corp. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
€44.60B3.9010.61%5.13%0.54%84.27%
64
Neutral
$12.85B9.817.59%16985.65%12.30%-7.71%
$122.85B6.00
6.13%
$42.57B5.9216.47%3.93%
$131.89B3.8622.83%4.04%
$42.82B10.0013.15%4.85%
75
Outperform
HK$158.35B3.9226.08%4.25%-43.77%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1508
China Reinsurance (Group) Corp. Class H
1.05
0.53
100.38%
PIAIF
Ping An Insurance Company of China
5.82
1.44
32.88%
CHPXF
China Pacific Insurance (Group) Co
3.65
1.01
38.26%
CILJF
China Life Insurance Co
2.18
0.72
49.32%
PPCCF
PICC Property & Casualty Co
2.01
0.81
67.50%
HK:1336
New China Life Insurance Co., Ltd. Class H
35.75
21.36
148.44%

China Reinsurance (Group) Corp. Class H Corporate Events

China Reinsurance Reports Strong Solvency and Financial Performance for Q1 2025
Apr 29, 2025

China Reinsurance (Group) Corporation has released its solvency and financial indicators for the first quarter of 2025, showcasing a strong financial position with a core solvency adequacy ratio of 325% at the group level. The company’s subsidiaries also reported solid solvency ratios, indicating a stable financial foundation. The announcement highlights the company’s commitment to transparency and its ability to meet regulatory requirements, which is crucial for maintaining investor confidence and supporting its market positioning.

China Reinsurance Releases 2024 Financial Reports and Solvency Statements
Apr 25, 2025

China Reinsurance (Group) Corporation announced the release of its annual reports, audit reports, and audited solvency statements for the year ended December 31, 2024, for its subsidiaries China Re P&C and China Re Life. The company has successfully issued capital supplementary bonds worth RMB4.0 billion and RMB5.0 billion in the National Interbank Bond Market. This disclosure is in compliance with relevant regulations and aims to enhance transparency and accountability, potentially strengthening the company’s market position and investor confidence.

China Reinsurance Releases Q1 2025 Financial Data and Solvency Statement
Apr 25, 2025

China Reinsurance (Group) Corporation announced the unaudited financial data and solvency statement for its subsidiary, China Re P&C, for the first quarter of 2025. The company disclosed a comprehensive financial position with total assets amounting to RMB 147.53 billion. This disclosure is part of regulatory requirements following the issuance of capital supplementary bonds, reflecting the company’s commitment to transparency and compliance, potentially impacting its market positioning and stakeholder confidence.

China Reinsurance Reports Q1 2025 Financial Data and Solvency Statement
Apr 25, 2025

China Reinsurance (Group) Corporation announced the unaudited financial data and solvency statement for its subsidiary, China Re Life, for the first quarter of 2025. The company successfully issued RMB5.0 billion in capital supplementary bonds, which necessitates regular disclosure of financial and solvency reports. This move is expected to strengthen China Re Life’s financial position and enhance transparency, potentially impacting its market standing and stakeholder confidence.

China Reinsurance Reports Strong 2024 Financial Results
Mar 28, 2025

China Reinsurance (Group) Corporation announced its audited consolidated results for the year ended December 31, 2024, reporting a significant increase in net profit to RMB 11.08 billion from RMB 5.79 billion in 2023. The company has successfully implemented new international financial reporting standards, which contributed to improved financial performance and operational efficiency, reflecting positively on its market positioning and stakeholder confidence.

China Reinsurance Announces Final Dividend for 2024
Mar 28, 2025

China Reinsurance (Group) Corporation has announced a final cash dividend of RMB 0.05 per share for the financial year ending December 31, 2024. The record date for the dividend is set for July 9, 2025, with payment scheduled for August 22, 2025. This announcement is part of the company’s ongoing commitment to return value to its shareholders, potentially enhancing its market position and investor confidence.

China Reinsurance Schedules Board Meeting to Review Annual Results
Mar 13, 2025

China Reinsurance (Group) Corporation has announced a board meeting scheduled for March 28, 2025, to consider and approve the annual results for the year ending December 31, 2024. The meeting will also discuss the potential payment of a final dividend and address any other business matters, which could impact the company’s financial strategy and stakeholder interests.

China Reinsurance Appoints Ms. Zhu Xiaoyun as Executive Director
Feb 26, 2025

China Reinsurance (Group) Corporation announced the approval of Ms. Zhu Xiaoyun’s qualification as an executive director by the National Financial Regulatory Administration. Her term as an executive director and member of the risk management committee will begin on February 24, 2025, and continue until the end of the fifth session of the board. This appointment is significant for the company’s governance and strategic direction, potentially impacting its risk management practices and board dynamics.

China Reinsurance Announces Board Composition and Committee Structure
Feb 26, 2025

China Reinsurance (Group) Corporation has announced the composition of its board of directors, which includes nine directors with various roles and functions. The board has established five specialized committees, indicating a structured approach to governance and oversight, which may enhance the company’s operational efficiency and strategic execution.

China Reinsurance Projects Significant Profit Growth for 2024
Feb 21, 2025

China Reinsurance (Group) Corporation has announced an expected increase in net profit attributable to its equity shareholders by approximately 80% to 100% for the year 2024, compared to 2023. This anticipated growth stems from the company’s strategic focus on expanding business scale, improving underwriting performance, and achieving growth in investment income, highlighting its strong operational capabilities and market positioning.

China Reinsurance Reports January 2025 Premium Income
Feb 21, 2025

For the period from January 1 to January 31, 2025, China Reinsurance (Group) Corporation reported an aggregate primary premium income of approximately RMB6,628 million. This financial metric, prepared according to PRC Accounting Standards for Business Enterprises, has not been audited or reviewed by the company’s audit committee, indicating stakeholders should interpret the data cautiously.

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.