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

• Market Cap: HK$52.83B
• Dividend Yield: 5.34%
• Average Volume (3M): 21.78M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.84
• 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$5.18
• Price Target Upside: 33.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: HK$4.50 ▲(15.68% Upside)

Sunshine Insurance Group Co. Ltd. demonstrates a strong financial foundation with robust revenue and profit growth, supported by effective cash flow management. The stock's valuation is attractive, with a low P/E ratio and high dividend yield, making it appealing for value and income investors. Technical indicators suggest a neutral market sentiment, with no significant bullish or bearish signals.

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

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: Positive
• Last Price: 3.89
• 50DMA: Negative
• 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:6963, the sentiment is Positive. The current price of 3.89 is above the 20-day moving average (MA) of 3.87, below the 50-day MA of 3.94, and above the 200-day MA of 3.32, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 53.15 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
0966	―	$61.03B	7.47	10.74%	2.05%	23.64%	36.32%
6963	―	HK$52.83B	7.19	9.76%	5.34%	8.20%	42.29%
1508	―	€67.12B	5.58	11.12%	3.44%	2.54%	17.80%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1456	―	HK$68.08B	17.71	4.10%	1.00%	255.77%	480.60%
6060	―	€27.33B	18.18	6.00%	―	-2.69%	-68.97%

Sunshine Insurance Group Co. Ltd. Corporate Events

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.

Sunshine Insurance Releases 2025 Interim Results

Sunshine Insurance Group Company Limited announced its unaudited interim results for the six months ending June 30, 2025. The announcement complies with the Hong Kong Stock Exchange’s listing rules and is available in both Chinese and English on the company’s and the stock exchange’s websites. The interim report will be published in September 2025, providing stakeholders with detailed financial and operational insights.

Sunshine Insurance Group Adjusts Board Committee Leadership

Sunshine Insurance Group Co. Ltd. announced adjustments to the members of its Board’s special committees. Mr. DONG Bin has been elected as the chairman of the Nomination and Remuneration Committee and a member of the Related Party Transactions Control Committee, while Mr. WANG Xiaopeng has been appointed as the chairman of the Risk Management Committee. These appointments are pending approval from the Chinese insurance regulatory authority and are expected to impact the company’s governance and strategic oversight.

Sunshine Insurance Group to Review Interim Results in Upcoming Board Meeting

Sunshine Insurance Group Co. Ltd. has announced that its board of directors will meet on August 22, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. This meeting will also address other corporate matters, potentially impacting the company’s operations and strategic positioning in the insurance market.

Sunshine Insurance Plans H Share Full Circulation

Sunshine Insurance Group Co. Ltd. has announced its plan to apply for the full circulation of its H shares, converting up to approximately 30.60% of its domestic unlisted shares into H shares. This move, pending regulatory approvals, aims to enhance the company’s market presence by listing these shares on the Hong Kong Stock Exchange, potentially impacting its operations and shareholder value.