PICC Property & Casualty Co (2328) AI Stock Analysis

• Market Cap: $379.68B
• Dividend Yield: 3.46%
• Average Volume (3M): 23.48M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.61
• Revenue Growth: 3.52%
• EPS Growth: 26.44%
• Country: HK
• Employees: 162,787
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): N/A
• Shares Outstanding: 6,899,293,500
• 10 Day Avg. Volume: 19,659,227
• 30 Day Avg. Volume: 23,484,867
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: 0.70
• 1Y Price Target: $16.88
• Price Target Upside: -3.17% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: HK$17.00 ▼(-2.47% Downside)

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 and Financial Performance

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 Influence

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

Investment Income

The insurer's strategic shift to FVOCI assets helped smooth investment income growth amid market fluctuations.

Negative Factors

Market Conditions

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

Natural Catastrophes

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

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.

PICC Property & Casualty Co Business Overview & Revenue Model

Company Description

PICC Property & Casualty Co., Ltd. (PICC P&C) is a leading insurance company in China, primarily engaged in providing comprehensive property and casualty insurance products. The company offers a wide range of insurance services, including motor vehicle insurance, commercial property insurance, liability insurance, and agricultural insurance. Headquartered in Beijing, PICC P&C is a subsidiary of the People's Insurance Company of China (PICC Group), and it operates through an extensive network across China, serving both individual and corporate clients.

How the Company Makes Money

PICC Property & Casualty Co. generates revenue primarily through the underwriting of insurance policies and the collection of premiums across various insurance lines. The company's key revenue streams include premiums from motor vehicle insurance, which is one of the largest segments, as well as commercial property, liability, and agricultural insurance. PICC P&C also earns investment income from its portfolio, which is comprised of assets such as bonds, equities, and other financial instruments. The company's earnings are influenced by factors such as underwriting profitability, claims management, investment performance, and strategic partnerships, including collaborations with government entities and other financial institutions to expand its market reach and product offerings.

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: 17.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 17.43 is above the 20-day moving average (MA) of 16.28, above the 50-day MA of 15.51, and above the 200-day MA of 13.51, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 72.17 is Negative, neither overbought nor oversold. The STOCH value of 74.08 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	$379.68B	10.88	13.15%	3.46%	3.52%	26.44%
1339	78 Outperform	$375.98B	6.07	17.85%	3.05%	4.62%	81.63%
1336	75 Outperform	HK$193.16B	5.37	26.08%	5.78%	20.69%	186.78%
0966	73 Outperform	HK$64.19B	8.64	9.88%	1.96%	17.76%	38.31%
2601	70 Outperform	$373.64B	7.05	16.47%	3.48%	11.99%	54.60%
1508	66 Neutral	€62.87B	5.49	10.61%	3.70%	0.54%	84.27%
Sector *	62 Neutral	C$15.63B	6.67	13.72%	5.98%	22.38%	-10.22%

PICC Property & Casualty Co Corporate Events

PICC Property & Casualty Co Schedules EGM for Key Procurement Decision

PICC Property & Casualty Co has announced an extraordinary general meeting scheduled for August 27, 2025, to consider and approve the Core Equipment Procurement Project for 2025. This meeting signifies a strategic move for the company, potentially impacting its operational capabilities and market positioning, as stakeholders will vote on this significant procurement decision.

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 Announces Leadership Changes

PICC Property & Casualty Co announced the election of Ms. Li Ling as the new employee representative director, following a meeting of the company’s employees’ representatives. This change marks a significant shift in the company’s governance structure, as it also involves the retirement of employee representative supervisors Mr. Zhou Zhiwen and Mr. Fu Xiaoliang, coinciding with the company’s decision to dissolve its supervisory committee.

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 Renews Asset Management Agreements

PICC Property & Casualty Co has renewed its Asset Management Agreements with PICC AMC and PICC Capital, effective from July 1, 2025, to June 30, 2028. These agreements involve PICC AMC and PICC Capital managing the company’s investment assets and subscribing to investment products, with the company paying management fees. The transactions are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval due to their size.

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 Updates Final Dividend Details for 2024

PICC Property & Casualty Co announced an update regarding its final cash dividend for the year ended December 31, 2024. The dividend, declared at RMB 0.332 per share, will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.095242. The payment date is set for August 8, 2025, with specific tax withholding details outlined for different shareholder categories. This announcement reflects the company’s commitment to returning value to its shareholders while adhering to international tax regulations.

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 Approves AGM Resolutions and Announces Dividend Distribution

PICC Property & Casualty Co announced that all proposed resolutions at their Annual General Meeting (AGM) held on June 27, 2025, were approved by shareholders through a poll. The resolutions included the approval of the 2024 financial reports, profit distribution plan, and the reappointment of auditors. Additionally, the company announced the distribution of final dividends, expected to be paid around August 8, 2025. These approvals and the dividend distribution reflect the company’s stable financial performance and strategic planning, potentially enhancing shareholder confidence and market positioning.

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 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.