PICC Property & Casualty Co (2328) AI Stock Analysis

• Market Cap: $344.32B
• Dividend Yield: 5.72%
• Average Volume (3M): 30.49M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.61
• Revenue Growth: 3.52%
• EPS Growth: 26.44%
• Country: HK
• Employees: 162,787
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Property & Casualty
• EPS (TTM): N/A
• Shares Outstanding: 6,899,293,500
• 10 Day Avg. Volume: 31,024,468
• 30 Day Avg. Volume: 30,494,820
• PEG Ratio: 0.25
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.92
• 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: $15.78
• Price Target Upside: 1.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: HK$17.00 ▲(9.82%Upside)

PICC Property & Casualty Co demonstrates a strong financial foundation with robust cash flow and low leverage. The stock's technical indicators are favorable, showing positive price trends. Additionally, its attractive valuation, supported by a low P/E ratio and high dividend yield, enhances its investment appeal. However, the lack of earnings call and corporate events data limits further insights into future performance.

Positive Factors

Earnings

PICC P&C reported a strong earnings alert, with net profit expected to surge significantly, driven by improved cost ratios and optimized asset allocation.

Government Policy

PICC P&C is best positioned to benefit from the government's push for SOE to lift valuations.

Investment Returns

Investment income surged 68% YoY to RMB 34.9bn, implying a yield of 5.5%, primarily driven by the fair value gains from allocations to FVTPL equities.

Negative Factors

Market Competition

Intensifying competition, unfavorable policy, increasing frequency of natural catastrophes, and slower-than-expected China GDP growth are potential concerns.

Stock Valuation

Trading at 1x forward PB, or near the peak level of the past five-year trading band, most of the positives are priced in with limited upside.

Underwriting Performance

Higher natural disaster frequencies impacted non-auto underwriting quality, leading to a slightly below expectations FY24 combined ratio.

PICC Property & Casualty Co Business Overview & Revenue Model

Company Description

PICC Property & Casualty Co., Ltd. (2328) is a leading insurance company based in China, specializing in a wide range of property and casualty insurance products. As a subsidiary of the People's Insurance Company of China, it offers insurance solutions that cover various sectors, including auto, commercial, liability, and agricultural insurance. The company has established a strong presence in the Chinese insurance market, providing comprehensive risk management and protection services to individuals and businesses across the country.

How the Company Makes Money

PICC Property & Casualty Co., Ltd. generates revenue primarily through the sale of insurance policies, which include premiums collected from customers in exchange for coverage against potential risks and losses. The company's key revenue streams are derived from underwriting profits, investment income, and service fees. Underwriting profits occur when the premiums collected exceed the claims paid out to policyholders. Additionally, PICC utilizes the premiums it collects to invest in a diverse portfolio of financial instruments, generating investment income. Significant partnerships with local businesses and government entities, along with a strong distribution network, further enhance its market reach and contribute to its earnings.

PICC Property & Casualty Co Financial Statement Overview

Summary

PICC Property & Casualty Co presents a strong financial profile with consistent revenue growth and sound profitability, albeit with some pressure on EBIT margins. The balance sheet is robust, characterized by low leverage and substantial equity. Cash flow generation is impressive, providing the company with the flexibility to fund growth and manage operations effectively. While the EBIT margin is a concern, overall financial health remains solid.

Income Statement

PICC Property & Casualty Co demonstrates robust revenue growth with a 9.37% increase in 2024. The gross profit margin remains high at 100% due to the nature of the insurance industry. However, the EBIT margin is notably low, impacting overall profitability. Despite this, the net profit margin improved to 6.68% in 2024, reflecting efficient cost management.

Balance Sheet

The company's financial stability is solid, with a debt-to-equity ratio of 0.08 indicating low leverage and prudent financial management. The equity ratio stands at a healthy 33.14%, ensuring a strong capital base. Return on equity is at 12.47%, showcasing effective utilization of equity. Overall, the balance sheet reflects strong financial health with manageable debt levels.

Cash Flow

The cash flow statement indicates strong operational cash generation, with a significant increase in free cash flow by 86.89% in 2024, enhancing financial flexibility. The operating cash flow to net income ratio of 1.13 and free cash flow to net income ratio of 1.03 suggest efficient cash conversion. These metrics underline the company's capacity to support operations and investment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	481.44B	440.22B	454.15B	417.89B	411.07B
Gross Profit	481.44B	440.22B	441.36B	417.89B	411.07B
EBITDA	43.01B	31.38B	4.77B	29.52B	28.58B
Net Income	32.17B	24.59B	29.16B	22.36B	20.87B
Balance Sheet
Total Assets	778.24B	703.62B	670.35B	682.62B	646.80B
Cash, Cash Equivalents and Short-Term Investments	8.56B	192.42B	165.01B	13.31B	14.17B
Total Debt	21.73B	9.68B	9.92B	9.84B	24.96B
Total Liabilities	517.62B	469.32B	453.09B	476.97B	456.77B
Stockholders Equity	257.92B	231.42B	217.26B	202.89B	187.51B
Cash Flow
Free Cash Flow	33.28B	17.81B	37.15B	13.92B	3.03B
Operating Cash Flow	36.46B	20.54B	42.71B	16.34B	12.81B
Investing Cash Flow	-27.55B	-11.13B	-32.19B	-8.16B	-29.39B
Financing Cash Flow	-6.05B	-14.22B	-7.00B	-16.84B	10.41B

PICC Property & Casualty Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2328, the sentiment is Positive. The current price of 15.48 is above the 20-day moving average (MA) of 15.22, above the 50-day MA of 14.88, and above the 200-day MA of 13.01, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 72.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2328.

PICC Property & Casualty Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2328	79 Outperform	$344.32B	9.87	13.15%	5.72%	3.52%	26.44%
1339	78 Outperform	$392.78B	5.80	17.85%	2.06%	4.62%	81.63%
1336	75 Outperform	HK$178.90B	4.80	26.08%	2.07%	-43.77%	―
0966	72 Outperform	$55.20B	7.43	9.88%	1.88%	17.76%	38.31%
2601	70 Outperform	$363.55B	5.89	16.47%	4.17%	11.99%	54.60%
1508	66 Neutral	€53.10B	4.64	10.61%	3.68%	0.54%	84.27%
Sector *	58 Neutral	$12.55B	5.32	-2.71%	5.38%	5.88%	-56.03%

PICC Property & Casualty Co Corporate Events

PICC Property & Casualty Co Extends Partnership with PIB for Insurance Brokerage Services

PICC Property & Casualty Co has entered into a new Business Cooperation Agreement with PIB, effective from June 17, 2025, to June 16, 2028. This agreement continues their collaboration in the insurance brokerage sector, with PIB providing brokerage services and PICC paying commissions. Despite previous decreases in brokerage commissions due to equity changes and market adjustments, the company expects growth in this partnership, maintaining the annual commission caps. This agreement is part of PICC’s strategy to enhance its digital insurance offerings and expand its market reach, particularly in cultural and tourism insurance.

The most recent analyst rating on (HK:2328) stock is a Buy with a HK$16.10 price target. To see the full list of analyst forecasts on PICC Property & Casualty Co stock, see the HK:2328 Stock Forecast page.

PICC Property & Casualty Co. Declares Final Dividend for 2024

PICC Property & Casualty Co. announced a final cash dividend of RMB 0.332 per share for the financial year ending December 31, 2024. The announcement includes details about the shareholders’ approval date, ex-dividend date, and payment date, with specific withholding tax information for different types of shareholders. This dividend declaration reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations.

The most recent analyst rating on (HK:2328) stock is a Hold with a HK$10.70 price target. To see the full list of analyst forecasts on PICC Property & Casualty Co stock, see the HK:2328 Stock Forecast page.

PICC Property & Casualty Co Announces Key Resolutions for Upcoming AGM

PICC Property & Casualty Co has announced its upcoming annual general meeting scheduled for June 27, 2025, where several key resolutions will be considered. These include the approval of the 2024 financial reports, profit distribution plan, and reappointment of auditors. Additionally, amendments to the Articles of Association and procedural rules are proposed, reflecting the company’s strategic planning and regulatory compliance efforts. These decisions are poised to impact the company’s governance and operational framework, potentially influencing stakeholder interests and market positioning.

The most recent analyst rating on (HK:2328) stock is a Hold with a HK$10.70 price target. To see the full list of analyst forecasts on PICC Property & Casualty Co stock, see the HK:2328 Stock Forecast page.

PICC Property & Casualty Co. Reports Strong Q1 2025 Financial Results

PICC Property & Casualty Co. announced its unaudited financial results for the first quarter of 2025, highlighting a significant year-on-year increase in both insurance revenue and net profit. The company achieved an insurance revenue of RMB 120,741 million and a net profit of RMB 11,312 million, representing increases of 6.1% and 92.7% respectively. The company optimized its business structure, improved its insurance service capacity, and capitalized on the recovery of China’s economy. It also reported a substantial increase in underwriting profit and total investment income, reflecting its strategic focus on high-quality development and long-term investment.

PICC Property & Casualty Co Signs Procurement Contract with Bangbang Auto

PICC Property & Casualty Co has entered into a one-year Auto Spare Parts Procurement Contract with Bangbang Auto Sales & Services, effective from April 17, 2025, to April 16, 2026. This contract involves the purchase of spare parts for repairing insured vehicles damaged in accidents, with Bangbang Auto responsible for delivery, installation, and additional services such as warranty and training. The transaction is classified as a continuing connected transaction under the Listing Rules, with a payment cap of RMB 250 million for 2025 and RMB 50 million for early 2026. This strategic partnership aims to streamline operations and ensure fair pricing by evaluating multiple e-commerce platforms, potentially enhancing the company’s efficiency in claims processing.

PICC Property & Casualty Co. Schedules Board Meeting for Q1 Results

PICC Property & Casualty Co. announced that its Board of Directors will meet on April 29, 2025, to review and approve the unaudited first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance for the first quarter, potentially impacting its market position and stakeholder interests.

PICC Property & Casualty Projects Significant Profit Growth in Q1 2025

PICC Property & Casualty Co., Ltd. announced an estimated net profit increase of approximately 80% to 100% for the first quarter of 2025 compared to the same period in 2024. This significant profit growth is attributed to the company’s strategic focus on strengthening business operations, optimizing expense inputs, and increasing high-quality equity asset allocations amidst China’s economic recovery. The company remains optimistic about China’s economic prospects and aims to support the stability of the capital market.