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China Pacific Insurance (Group) Co Ltd Class H (HK:2601)
:2601
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China Pacific Insurance (Group) Co (2601) AI Stock Analysis

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HK:2601

China Pacific Insurance (Group) Co

(2601)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
HK$38.00
▲(15.08% Upside)
China Pacific Insurance (Group) Co receives a strong overall score due to its robust financial performance, characterized by solid revenue growth and a strong balance sheet. The stock's attractive valuation, with a low P/E ratio and a decent dividend yield, further enhances its appeal. Technical indicators suggest a positive trend, though the stock may be overbought. The absence of earnings call data and corporate events does not impact the score.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.
Balance Sheet Health
Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without significant risk.
Investment Income
Diversified income streams from investments provide a buffer against insurance market volatility, supporting consistent financial performance.
Negative Factors
Cash Flow Volatility
Volatile cash flows can impact the company's ability to fund operations and investments, posing a risk to financial stability and growth.
Profit Margin Fluctuations
Fluctuating profit margins may indicate challenges in cost management or pricing power, affecting long-term profitability.
Cash Flow Growth Rate
Negative cash flow growth could limit the company's ability to reinvest in business operations, affecting future growth prospects.

China Pacific Insurance (Group) Co (2601) vs. iShares MSCI Hong Kong ETF (EWH)

China Pacific Insurance (Group) Co Business Overview & Revenue Model

Company DescriptionChina Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People's Republic of China. It operates through Life and Health Insurance, Property and Casualty Insurance, and Other Businesses segments. The company offers life, health, and accident insurance products, etc.; liability insurance; credit and guarantee insurance; short-term health insurance and casualty insurance; property insurance; agricultural insurance; and individual and group pension and annuity products, as well as insurance funds investment and reinsurance services. It is also involved in the management of capital and insurance funds; outsourcing of fund management; and other asset management activities, as well as provision of advisory services relating to asset management. In addition, the company is involved in the property management and construction; real estate activities; elderly service and medical consulting services; and seniors and disabled care services. It sells its products directly, as well as through insurance agents and brokers, bancassurance, telemarketing, and internet Sales. The company was founded in 1991 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyChina Pacific Insurance generates revenue through multiple streams, primarily from premiums collected from its insurance policies. The company offers life insurance products, which include traditional life policies, health insurance, and annuities, generating substantial premium income. Additionally, its property and casualty insurance segment provides coverage for various risks, contributing further to its revenue. Beyond insurance premiums, the company also earns income through investment income generated from its significant investment portfolio, which includes stocks, bonds, and other financial instruments. Furthermore, China Pacific Insurance has established strategic partnerships and collaborations that enhance its distribution channels and customer outreach, thereby supporting its earnings growth. The combination of robust premium income, investment returns, and strategic partnerships positions the company for continued financial success.

China Pacific Insurance (Group) Co Earnings Call Summary

Earnings Call Date:Oct 30, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Mar 23, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in net profit and new business value, alongside improved product mix and asset management growth. However, these positive aspects were balanced by challenges in CPIC Life revenue, a decrease in Group Channel GWP, and pressures on net investment yield, with additional impacts from catastrophes on P&C business.
Q3-2024 Updates
Positive Updates
Increased Net Profit
The group realized a net profit of CNY 38.3 billion, up 65.5% year-on-year.
Growth in CPIC P&C
CPIC P&C delivered CNY 145.2 billion in revenue, up 4.1% year-on-year.
Growth in New Business Value
CPIC Life's new business value was CNY 14.2 billion, up 37.9% year-on-year.
Improved Product Mix
The share of health protection and participating products doubled starting from September.
Growth in CPIC P&C Non-auto Premiums
Non-auto premiums grew by 12.2% year-on-year.
Asset Management Growth
Total AUM was CNY 2.58 trillion, 14.9% higher than the end of last year.
Negative Updates
Decline in CPIC Life Revenue
CPIC Life's revenue was CNY 62.3 billion, down 2.5% year-on-year.
Challenges in Group Channel
Group Channel's GWP decreased by 12.8% year-on-year.
Flat Combined Ratio
CPIC P&C's combined ratio was 98.7%, unchanged from the same period last year.
Pressure on Net Investment Yield
The net investment yield was 2.9%, down 0.1 percentage points year-on-year.
Impact of Catastrophes on P&C
Catastrophe losses impacted the combined ratio, particularly affecting non-auto insurance.
Company Guidance
In the Q3 2024 earnings call for CPIC Group, the executives provided a comprehensive overview of the company's performance metrics and strategic focuses. The group reported an insurance revenue of CNY 209.4 billion, a 2.3% increase year-on-year, with CPIC Life contributing CNY 62.3 billion, despite a 2.5% decrease, and CPIC P&C delivering CNY 145.2 billion, up 4.1%. The net profit soared to CNY 38.3 billion, marking a significant 65.5% rise. CPIC Life's new business value saw a remarkable 37.9% growth to CNY 14.2 billion, with a new business margin improvement of 6.2 percentage points, reaching 20.0%. The persistency ratios improved, with the 13-month ratio increasing to 97.5% and the 25-month ratio to 92.3%. The total assets under management rose by 14.9% to CNY 2.58 trillion, although the net investment yield slightly decreased by 0.1 percentage points to 2.9%. The call also highlighted strategies like "BIG HEALTH," "BIG REGION," and "BIG DATA" to enhance customer management and business quality, along with digital innovations in AI for auditing and claims processing. Looking forward, CPIC aims to maintain high-quality growth, optimize service processes, and focus on digital transformation and risk management.

China Pacific Insurance (Group) Co Financial Statement Overview

Summary
China Pacific Insurance (Group) Co demonstrates robust financial health with strong revenue growth and stable profit margins. The balance sheet is solid with low leverage and high equity returns, while cash flow generation remains strong despite some volatility. Overall, the company is well-positioned financially, with a stable growth trajectory and strong capital structure, though it faces potential cash flow fluctuations.
Income Statement
75
Positive
The income statement for China Pacific Insurance (Group) Co reveals moderate revenue growth with fluctuating profit margins. The TTM (Trailing-Twelve-Months) data shows a Gross Profit Margin of approximately 100% due to the nature of the insurance industry, where revenue is recognized as gross profit. However, the Net Profit Margin is relatively stable at around 11.76% in the TTM, showing a slight decrease from the previous year. The Revenue Growth Rate from the previous year to TTM is approximately 16.98%, indicating solid growth. EBIT and EBITDA margins are consistent with industry norms.
Balance Sheet
80
Positive
The balance sheet exhibits a strong equity position with a Debt-to-Equity Ratio of approximately 0.05 in the TTM, indicating low leverage. The Return on Equity (ROE) is healthy at 16.24% in the TTM, reflecting efficient use of equity capital. The Equity Ratio stands at 9.03%, suggesting a stable capital structure. Overall, the company maintains a strong financial position with adequate equity and low debt levels.
Cash Flow
70
Positive
The cash flow analysis shows significant Free Cash Flow generation, although the Free Cash Flow Growth Rate is negative due to a high base effect from the previous year. The Operating Cash Flow to Net Income Ratio is strong at 0.93 in the TTM, indicating good cash conversion. However, the Free Cash Flow to Net Income Ratio at 2.94 suggests potential volatility in cash flows, which could impact future cash availability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue367.20B401.90B321.68B328.96B436.39B418.26B
Gross Profit367.19B401.84B321.67B301.03B406.09B378.77B
EBITDA144.44B60.21B314.87B320.92B38.77B37.05B
Net Income47.71B44.96B27.26B37.38B26.83B24.58B
Balance Sheet
Total Assets3.03T2.83T2.34T2.18T1.95T1.77T
Cash, Cash Equivalents and Short-Term Investments46.40B29.36B30.93B748.22B677.93B617.04B
Total Debt11.90B13.01B13.38B12.72B13.10B13.42B
Total Liabilities2.72T2.52T2.08T1.94T1.71T1.55T
Stockholders Equity281.87B291.42B249.59B228.45B226.74B215.22B
Cash Flow
Free Cash Flow141.60B150.53B133.88B138.81B104.72B104.44B
Operating Cash Flow120.50B154.40B137.86B147.91B108.41B108.06B
Investing Cash Flow-263.50B-209.90B-161.36B-168.98B-66.09B-136.07B
Financing Cash Flow81.75B61.34B3.29B28.48B-31.37B21.45B

China Pacific Insurance (Group) Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.02
Price Trends
50DMA
31.92
Positive
100DMA
32.46
Positive
200DMA
28.20
Positive
Market Momentum
MACD
0.16
Negative
RSI
55.55
Neutral
STOCH
75.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2601, the sentiment is Positive. The current price of 33.02 is above the 20-day moving average (MA) of 32.20, above the 50-day MA of 31.92, and above the 200-day MA of 28.20, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 75.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2601.

China Pacific Insurance (Group) Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
HK$202.54B4.7234.37%5.83%49.90%203.77%
78
Outperform
$403.15B6.3317.34%3.01%9.40%79.93%
76
Outperform
$342.36B5.2218.41%3.47%15.08%23.13%
72
Outperform
$1.10T6.724.54%10.20%19.74%
71
Outperform
$65.16B7.9710.74%1.87%23.64%36.32%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
62
Neutral
$460.79B16.6310.17%2.10%62.72%29.18%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2601
China Pacific Insurance (Group) Co
33.02
7.73
30.56%
HK:2318
Ping An Insurance Company of China
60.75
15.25
33.53%
HK:6030
CITIC Securities Co
27.12
4.37
19.20%
HK:0966
China Taiping Insurance Holdings Co
18.08
5.68
45.84%
HK:1339
People's Insurance Co (Group) of China
6.61
2.84
75.29%
HK:1336
New China Life Insurance Co., Ltd. Class H
49.16
24.68
100.82%

China Pacific Insurance (Group) Co Corporate Events

China Pacific Insurance Announces Approval of New Director Appointment
Dec 4, 2025

China Pacific Insurance (Group) Co., Ltd. has announced the approval of Ms. WANG Yuhua’s appointment as a non-executive director by the National Financial Regulatory Administration. This appointment, effective from December 2, 2025, signifies a strategic addition to the company’s board, potentially impacting its governance and strategic direction.

China Pacific Insurance Announces Board Composition and Committee Roles
Dec 4, 2025

China Pacific Insurance (Group) Co., Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. This update includes the establishment of five board committees, which are crucial for strategic decision-making, risk management, and consumer protection, potentially enhancing the company’s governance and operational efficiency.

China Pacific Insurance Appoints New Employee Director
Nov 21, 2025

China Pacific Insurance (Group) Co., Ltd. has announced the election of Ms. Zhou Liyun as an employee director for the tenth session of its board. Her term will commence following the approval of the company’s Articles of Association by the National Financial Regulatory Administration. Ms. Zhou brings extensive experience from previous roles in various Shanghai-based organizations, and her appointment is expected to strengthen the company’s governance structure. Her remuneration details will be disclosed in the annual report as per regulatory requirements.

China Pacific Insurance Reports Growth in Premium Income for 2025
Nov 13, 2025

China Pacific Insurance (Group) Co., Ltd. announced that its subsidiary, China Pacific Life Insurance Co., Ltd., achieved a primary premium income of RMB241.322 billion from January to October 2025, marking a 9.9% increase year-on-year. Meanwhile, China Pacific Property Insurance Co., Ltd. reported a primary premium income of RMB173.567 billion, a slight increase of 0.4% compared to the previous year. These figures, although unaudited, indicate a positive growth trajectory for the company’s life insurance segment, while the property insurance segment shows modest growth, potentially impacting the company’s market positioning and stakeholder confidence.

China Pacific Insurance Reports Strong Q3 2025 Financial Performance
Oct 31, 2025

China Pacific Insurance (Group) Co., Ltd. announced its unaudited financial results for the third quarter of 2025, showing a substantial increase in operating income and profit before tax compared to the previous year. The company’s net profit grew by 35.2% for the quarter and 19.3% for the nine months ending September 2025, indicating strong financial performance. The report highlights a notable one-time profit impact due to the inclusion of Shanghai Ruiyongjing Real Estate Development Co., Ltd. as a subsidiary, which contributed significantly to the non-recurring profit. These results reflect the company’s robust operational capabilities and its strategic positioning in the market, potentially enhancing stakeholder confidence.

China Pacific Insurance Releases Q3 Solvency Report
Oct 30, 2025

China Pacific Insurance (Group) Co., Ltd. has released an overseas regulatory announcement in compliance with the Hong Kong Stock Exchange’s listing rules. The announcement, signed by Chairman Fu Fan, includes a summary of the third quarter solvency report for Pacific Health Insurance Co., Ltd., indicating the company’s ongoing regulatory transparency and commitment to maintaining solvency standards.

China Pacific Insurance Releases Q3 Solvency Report
Oct 30, 2025

China Pacific Insurance (Group) Co., Ltd. has released an overseas regulatory announcement in accordance with the Hong Kong Stock Exchange’s listing rules. The announcement, which includes a summary of the quarterly solvency report for Pacific Anxin Agricultural Insurance Co., Ltd. for the third quarter of 2025, is intended for informational purposes, reflecting the company’s commitment to transparency and regulatory compliance.

China Pacific Insurance Releases Q3 Solvency Report
Oct 30, 2025

China Pacific Insurance (Group) Co., Ltd. has released an overseas regulatory announcement in compliance with Hong Kong Stock Exchange rules. The announcement, dated October 31, 2025, includes a summary of the company’s quarterly solvency report for the third quarter of 2025, providing insights into the company’s financial health and regulatory compliance.

China Pacific Insurance Releases Q3 Solvency Report
Oct 30, 2025

China Pacific Insurance (Group) Co., Ltd. has released an overseas regulatory announcement in compliance with the Hong Kong Stock Exchange’s listing rules. The announcement includes a summary of the company’s quarterly solvency report for the third quarter of 2025, providing stakeholders with insights into the company’s financial health and regulatory compliance.

China Pacific Insurance Reports Strong Q3 2025 Financial Results
Oct 30, 2025

China Pacific Insurance (Group) Co., Ltd. has released its unaudited financial results for the third quarter of 2025, showing significant growth in key financial metrics. The company reported a 24.6% increase in operating income and an 85.7% rise in profit before tax compared to the same period in 2024. The net profit for the quarter rose by 35.2%, reflecting strong operational performance. The results indicate a robust financial position, with total assets increasing by 8.6% since the end of 2024. The inclusion of Shanghai Ruiyongjing Real Estate Development Co., Ltd. as a subsidiary contributed a one-time profit impact, enhancing the company’s financial standing.

China Pacific Insurance Announces Q3 2025 Results Presentation
Oct 21, 2025

China Pacific Insurance (Group) Co., Ltd. has announced a voluntary presentation of its 2025 third quarter results, scheduled for October 30, 2025. This initiative aims to provide investors with a comprehensive understanding of the company’s financial performance and operational status, with the Chairman and senior management available to address investor queries during a live streaming session.

China Pacific Insurance Schedules Board Meeting for Q3 Results
Oct 16, 2025

China Pacific Insurance (Group) Co., Ltd. announced that its board of directors will meet on 30 October 2025 to consider and approve the company’s third quarterly results for the nine months ended 30 September 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

China Pacific Insurance Reports Robust Growth in Life Insurance Premiums
Oct 16, 2025

China Pacific Insurance (Group) Co., Ltd. announced that its subsidiary, China Pacific Life Insurance Co., Ltd., reported an accumulated primary premium income of RMB232.436 billion for the period from January to September 2025, marking a 10.9% year-on-year increase. Meanwhile, China Pacific Property Insurance Co., Ltd., another subsidiary, achieved a primary premium income of RMB159.955 billion, reflecting a marginal increase of 0.1% compared to the previous year. These figures, although unaudited, indicate a robust growth in the life insurance segment, while the property insurance segment shows stability. This announcement underscores the company’s strong performance and strategic positioning in the competitive insurance market.

China Pacific Insurance Reports Growth in Premium Income for 2025
Sep 18, 2025

China Pacific Insurance (Group) Co., Ltd. announced its accumulated primary premium income for the period between January and August 2025. The life insurance subsidiary reported a 13.2% year-on-year increase to RMB217.050 billion, while the property insurance subsidiary saw a 0.4% increase to RMB142.809 billion. This growth in premium income reflects the company’s strong market position and potential positive implications for stakeholders.

China Pacific Insurance Completes HK$15.6 Billion Bond Issuance
Sep 18, 2025

China Pacific Insurance (Group) Co., Ltd. has successfully completed the issuance of zero-coupon convertible bonds worth HK$15,556,000,000, with the listing on the Hong Kong Stock Exchange expected to be effective on 19 September 2025. The proceeds from this issuance will be used to develop the company’s insurance business, implement strategic initiatives in health services, AI, and internationalization, and for general corporate purposes, including supplementing working capital.

China Pacific Insurance Engages Investors in 2025 Shanghai Event
Sep 15, 2025

China Pacific Insurance (Group) Co., Ltd. announced its participation in the 2025 Listed Company Collective Reception Day in Shanghai and Interim Results Presentation Event. This initiative aims to strengthen communication with investors, allowing them to engage with the company’s senior management on topics such as interim results, corporate governance, and development strategies, thereby enhancing transparency and investor relations.

China Pacific Insurance Proposes HK$15.556 Billion Convertible Bond Issuance
Sep 11, 2025

China Pacific Insurance (Group) Co., Ltd. announced the proposed issuance of HK$15.556 billion zero coupon convertible bonds due 2030 under a general mandate. The proceeds from this issuance are intended to support the company’s insurance business development, strategic initiatives in health services and AI, and general corporate purposes. The bonds are convertible into H Shares, with the initial conversion price set at HK$39.04 per share, representing a significant potential increase in share capital. The issuance is subject to certain conditions and regulatory approvals, and the company advises caution to shareholders and potential investors regarding the completion of this transaction.

China Pacific Insurance Proposes HKD-Denominated Convertible Bonds Issuance
Sep 10, 2025

China Pacific Insurance (Group) Co., Ltd. has announced a proposed issuance of HKD-denominated convertible bonds aimed at professional investors outside the United States, in accordance with Regulation S under the Securities Act. The proceeds from this issuance are intended to support the development of the company’s insurance business, strategic initiatives in health services and elderly care, AI+, internationalization, and general corporate purposes. The issuance is subject to market conditions and no definitive agreement has been reached yet, urging potential investors and shareholders to exercise caution.

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.Date of analysis: Nov 17, 2025