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

• Market Cap: HK$51.03B
• Dividend Yield: 5.75%
• Average Volume (3M): 21.78M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.85
• 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: HK$3.73
• Price Target Upside: 3.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$4.00 ▲(10.80% Upside)

Sunshine Insurance Group Co. Ltd. shows strong financial performance with robust revenue and profit growth, supported by effective cash flow management. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, making it appealing for value investors. Technical analysis indicates a mixed outlook with short-term bearish signals but potential for a rebound given the RSI's proximity to oversold levels. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

The company's significant revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Cash Generation

Robust cash generation enhances the company's ability to reinvest in growth opportunities and return value to shareholders, ensuring financial health.

Operational Efficiency

Significant improvement in operational efficiency reflects better cost management and strategic execution, boosting profitability and competitiveness.

Negative Factors

Leverage

While leverage is moderate, reliance on debt can pose risks if not managed carefully, potentially impacting financial flexibility and stability.

Equity Position

A relatively low equity ratio compared to industry leaders may limit the company's ability to absorb financial shocks and fund growth internally.

Return on Equity

While ROE is healthy, there is room for improvement to match industry leaders, which could enhance shareholder value and attract more investors.

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

Company Description

Sunshine Insurance Group Co. Ltd. (6963) is a prominent insurance and financial services provider headquartered in China. The company operates primarily in the insurance sector, offering a diverse range of products including life insurance, health insurance, property and casualty insurance, as well as asset management services. With a strong focus on enhancing client satisfaction and leveraging technology, Sunshine Insurance aims to provide comprehensive risk management solutions tailored to individual and corporate needs.

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

Sunshine Insurance Group Co. Ltd. exhibited strong financial performance with substantial revenue and profit growth. It maintained a stable balance sheet with moderate leverage and a solid equity base. The cash flow analysis indicates strong cash generation and effective capital management. While the company shows positive trends, further improvements in profitability and leveraging its equity base could enhance financial stability and growth potential.

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: Neutral
• Last Price: 3.61
• 50DMA: Negative
• 100DMA: Negative
• 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:6963, the sentiment is Neutral. The current price of 3.61 is below the 20-day moving average (MA) of 3.63, below the 50-day MA of 3.76, and above the 200-day MA of 3.50, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	HK$51.03B	6.91	9.76%	5.75%	8.20%	42.29%
0966	71 Outperform	$65.16B	7.97	10.74%	1.90%	23.64%	36.32%
1508	71 Outperform	€67.12B	5.62	11.12%	3.42%	2.54%	17.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1456	67 Neutral	HK$60.98B	15.10	4.95%	1.12%	365.12%	170.00%
6060	58 Neutral	€27.66B	18.40	6.00%	―	-2.69%	-68.97%

Sunshine Insurance Group Co. Ltd. Corporate Events

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.

Sunshine Insurance Releases Unaudited Financial Data for Sunshine Life

Sunshine Insurance Group Co. Ltd. announced the unaudited financial data and solvency statement for its subsidiary, Sunshine Life, for the nine months ending September 30, 2025. This disclosure is part of regulatory requirements following the issuance of capital supplementary bonds in the National Inter-bank Bond Market. The announcement advises caution for shareholders and potential investors, as the financial data has not been audited or reviewed.

Sunshine Insurance Group Releases Q3 2025 Financial Data and Solvency Statement

Sunshine Insurance Group Company Limited announced the unaudited financial data and solvency statement for its subsidiary, Sunshine P&C, for the nine months ending September 30, 2025. The announcement is part of regulatory requirements following the issuance of capital supplementary bonds in the National Inter-bank Bond Market. These disclosures are crucial for maintaining transparency and informing shareholders and potential investors about the company’s financial health and solvency status.

Sunshine Insurance Group Releases Q3 2025 Solvency Indicators

Sunshine Insurance Group Co. Ltd. announced the disclosure of the main indicators of solvency and operations for its subsidiaries for the third quarter of 2025. These reports, which are not audited, aim to provide shareholders and investors with insights into the company’s financial position. The company advises caution when dealing with its shares, as the solvency reports are available on the company’s and the Insurance Association of China’s websites.

Sunshine Insurance Gains CSRC Approval for H Share Circulation

Sunshine Insurance Group Co. Ltd. announced that the China Securities Regulatory Commission has accepted its registration application for H Share Full Circulation. This development is a significant step in the company’s efforts to enhance its market presence and liquidity, although the implementation details are yet to be finalized. Shareholders and potential investors are advised to exercise caution as further procedures and announcements are expected.

Sunshine Insurance Approves Employee Share Ownership Plan at EGM

Sunshine Insurance Group Co. Ltd. held its first extraordinary general meeting of 2025 on October 22, where the adoption of the Employee Share Ownership Plan was approved by a significant majority. This decision reflects the company’s commitment to enhancing employee engagement and aligning interests between shareholders and employees, potentially impacting its operational dynamics and stakeholder relations positively.

Sunshine Insurance Group Announces EGM to Discuss Employee Share Plan

Sunshine Insurance Group Co. Ltd. has announced its first extraordinary general meeting (EGM) for 2025, scheduled to be held on October 22, 2025, in Shanghai, China. The primary agenda of the meeting is to consider and approve a special resolution regarding the adoption of an Employee Share Ownership Plan. This move could potentially enhance employee engagement and align interests with shareholders, impacting the company’s operational dynamics and market positioning.