Sunshine Insurance Group Co. Ltd. (6963) AI Stock Analysis

• Market Cap: HK$58.64B
• Dividend Yield: 5.22%
• Average Volume (3M): 21.78M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.88
• Revenue Growth: 8.20%
• EPS Growth: 42.29%
• Country: HK
• Employees: 48,477
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 0.32
• Shares Outstanding: 3,478,768,600
• 10 Day Avg. Volume: 16,685,011
• 30 Day Avg. Volume: 21,781,585
• PEG Ratio: 0.12
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 0.93
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$5.00 ▲(26.26% Upside)

The score is driven mainly by strong financial performance and cash generation, reinforced by an attractive valuation (low P/E and high dividend yield). Technicals are supportive but slightly reduce the score due to stretched momentum signals (RSI/Stoch), which may indicate limited near-term upside.

Positive Factors

Revenue Growth

Sustained 11.5% top-line growth indicates expanding premium volumes and market penetration. Durable revenue expansion supports larger reserve and investment bases, funds product development and distribution, and underpins long-term profitability and scale advantages in core insurance lines.

Cash Generation

Very strong cash conversion and a near 75% rise in free cash flow demonstrate sustainable internal funding capacity. Reliable cash generation strengthens the firm’s ability to pay claims, invest assets, return capital, and support organic growth without heavy external financing over the medium term.

Diversified Business Model

A broad product mix across life, health, P&C and asset management plus strategic partnerships spreads revenue sources and distribution channels. Structural diversification reduces single-line concentration risk, enhancing resilience to cycle-specific shocks and supporting steadier long-term cash flows.

Negative Factors

Moderate Return on Equity

ROE near 8.8% is positive but below top-tier insurers, indicating room to improve capital efficiency. Persistently middling ROE can limit long-term shareholder value creation unless management lifts underwriting returns or investment yields, constraining competitive returns over time.

Thin Equity Buffer

An equity ratio around 10.7% implies a relatively limited capital cushion relative to assets. For insurers this increases sensitivity to large claims or adverse reserve developments, may restrict underwriting capacity, and could necessitate capital raises in stressed scenarios, affecting long-term growth flexibility.

Reliance on Investment Income

Significant dependence on investment returns from premium reserves and asset management fees links profitability to market conditions. Extended periods of weak markets or adverse rate moves can compress investment spreads and pressure underwriting margins, posing a structural earnings volatility risk.

Sunshine Insurance Group Co. Ltd. Business Overview & Revenue Model

Company Description

Sunshine Insurance Group Company Limited engages in the provision of insurance products in China. It provides life insurance products; property and casualty insurance products comprising automobile insurance, accident insurance, short-term health insurance, guarantee insurance, liability insurance, agriculture insurance, and commercial property insurance. The company was formerly known as Sunshine Insurance Holdings Co., Ltd. and changed its name to Sunshine Insurance Group Company Limited in 2007. Sunshine Insurance Group Company Limited was founded in 2004 and is based in Shenzhen, China.

How the Company Makes Money

Sunshine Insurance Group generates revenue primarily through the sale of insurance policies, which include premiums collected from life, health, and property insurance products. The company earns money by charging premiums that are higher than the claims it pays out to policyholders, a fundamental principle of the insurance business. Additionally, Sunshine Insurance benefits from investment income generated from the premiums that are held in reserves before claims are paid. The firm also engages in asset management services, creating another revenue stream through fees associated with managing investments for clients. Strategic partnerships with various financial institutions and technology firms enhance its distribution channels and operational efficiency, further contributing to its overall earnings.

Sunshine Insurance Group Co. Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by 11.51% revenue growth, improved net margin (6.78% vs 5.19%), and very strong cash conversion (operating cash flow to net income 5.98) with free cash flow up 74.99%. Balance sheet leverage is moderate (debt-to-equity 0.31) with healthy ROE (8.77%), though not best-in-class.

Income Statement

Sunshine Insurance Group Co. Ltd. demonstrated strong revenue growth with a 11.51% increase from 2023 to 2024. The gross profit margin remained steady as expected in the insurance industry with a 100% margin due to the nature of revenue recognition. The net profit margin improved to 6.78% in 2024 from 5.19% in 2023, showcasing better cost management. However, the EBIT margin witnessed significant improvement, rising from 11.03% in 2023 to 86.91% in 2024, indicating enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stood at 0.31 in 2024, indicating moderate leverage, which is typical in the insurance industry. The equity ratio improved slightly to 10.67% in 2024, reflecting a stable equity position relative to total assets. The return on equity was 8.77% for 2024, showing a healthy return for shareholders, though there is room for improvement compared to industry leaders.

Cash Flow

The operating cash flow to net income ratio was robust at 5.98 in 2024, indicating strong cash generation relative to reported earnings. Free cash flow showed significant growth, up 74.99% from 2023 to 2024, supporting the company's capacity to reinvest and return value to shareholders. The free cash flow to net income ratio was 5.87, reinforcing the company's strong cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.47B	75.22B	72.05B	66.60B	119.65B	115.06B
Gross Profit	80.47B	78.67B	63.42B	70.31B	119.65B	115.06B
EBITDA	0.00	11.06B	8.59B	7.47B	8.81B	9.46B
Net Income	5.70B	5.45B	3.74B	4.49B	5.88B	5.62B
Balance Sheet
Total Assets	625.56B	581.79B	513.69B	453.57B	412.48B	406.49B
Cash, Cash Equivalents and Short-Term Investments	0.00	6.71B	306.00B	186.94B	166.19B	116.15B
Total Debt	19.66B	20.10B	20.06B	12.91B	13.85B	17.50B
Total Liabilities	563.36B	518.38B	451.90B	394.22B	360.72B	349.55B
Stockholders Equity	55.84B	62.08B	60.45B	58.08B	50.55B	55.80B
Cash Flow
Free Cash Flow	41.83B	32.00B	18.28B	24.48B	42.88B	36.80B
Operating Cash Flow	42.49B	32.60B	20.33B	25.92B	44.57B	39.17B
Investing Cash Flow	-20.01B	-37.62B	-36.41B	-28.41B	-4.69B	-55.97B
Financing Cash Flow	-5.46B	-9.68B	18.13B	1.88B	-26.36B	17.45B

Sunshine Insurance Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6963, the sentiment is Positive. The current price of 3.96 is below the 20-day moving average (MA) of 4.23, above the 50-day MA of 3.94, and above the 200-day MA of 3.68, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6963.

Sunshine Insurance Group Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6963	75 Outperform	HK$58.64B	7.94	9.76%	5.22%	8.20%	42.29%
0966	74 Outperform	HK$92.08B	11.27	10.74%	1.81%	23.64%	36.32%
1508	71 Outperform	HK$74.76B	6.26	11.12%	3.22%	2.54%	17.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6060	58 Neutral	HK$28.04B	18.65	6.00%	―	-2.69%	-68.97%
1456	57 Neutral	HK$59.54B	15.27	4.95%	1.18%	365.12%	170.00%

Sunshine Insurance Group Co. Ltd. Corporate Events

Sunshine Insurance Wins Regulatory Nod for New Executive Director and Risk Committee Chair

Sunshine Insurance Group Company Limited has received regulatory approval from China’s National Financial Regulatory Administration for the qualification of Mr. Wang Xiaopeng as an executive director, effective 29 January 2026. Concurrently, Wang has been appointed chairman of the Board’s Risk Management Committee, replacing executive director Li Ke, marking a key shift in the Group’s governance and oversight structure. Wang, a long-serving insider who joined the Group in 2007 and currently serves as deputy general manager and chief auditor, brings extensive operational and risk management experience from both Sunshine Insurance and PICC Property and Casualty, and holds equity interests through the company’s employee share ownership and performance-based bonus deferral plans, aligning his interests with shareholders.

The most recent analyst rating on (HK:6963) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Sunshine Insurance Group Co. Ltd. stock, see the HK:6963 Stock Forecast page.

Sunshine Insurance Group Details Board Structure and Committee Assignments

Sunshine Insurance Group Company Limited has announced the current composition of its board of directors, detailing the roles of executive, non-executive and independent non-executive directors, including Chairman and Chief Executive Officer Zhang Weigong. The company has also formalized governance through seven specialized board committees—covering strategy and investment decisions, risk management, audit, nomination and remuneration, related-party transactions control, consumer rights protection and ESG—assigning chairmanships and memberships across directors to strengthen oversight, risk control, and stakeholder protection in line with market and regulatory expectations.

The most recent analyst rating on (HK:6963) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Sunshine Insurance Group Co. Ltd. stock, see the HK:6963 Stock Forecast page.

Sunshine Insurance Advances RMB20 Billion Investment in Pilot Fund

Sunshine Insurance Group Co. Ltd. announced the completion of the industrial and commercial registration of its fund manager, Sunshine Hengyi (Qingdao) Private Equity Fund Management Co., Ltd. The company has entered into a Fund Contract with Sunshine Life and China Merchants Bank for a proposed RMB20 billion investment in the Pilot Fund units. This strategic move aims to enhance Sunshine Insurance’s market positioning in the private securities investment fund management sector, potentially impacting its financial growth and stakeholder interests.

The most recent analyst rating on (HK:6963) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on Sunshine Insurance Group Co. Ltd. stock, see the HK:6963 Stock Forecast page.