Great Eastern Holdings Limited (G07) AI Stock Analysis

• Market Cap: S$12.21B
• Dividend Yield: 6.98%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.19
• Revenue Growth: 23.83%
• EPS Growth: 28.49%
• Country: SG
• Employees: 5,250
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Life
• EPS (TTM): N/A
• Shares Outstanding: 473,319,060
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.32
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.32
• 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

• Rating: 66 Neutral
• Price Target: ―

Great Eastern Holdings Limited demonstrates strong financial stability and revenue growth, supported by a robust balance sheet with minimal leverage. However, challenges in operational efficiency and cash flow management need attention. The stock's valuation appears fair with a reasonable P/E ratio and attractive dividend yield, but technical indicators show no strong market momentum.

Great Eastern Holdings Limited Business Overview & Revenue Model

Company Description

Great Eastern Holdings Limited, an investment holding company, provides insurance products in Singapore, Malaysia, and rest of Asia. It operates through Life Insurance, Non-Life Insurance, and Shareholders segments. The Life Insurance segment offers life, long-term health and accident, annuity business written, and unit-linked insurance products. The Non-Life Insurance segment provides short term property and casualty products, including fire or burglary insurance contracts and/or business interruption contracts, and public liability insurance contracts; and short term medical and personal accident non-life insurance contracts. The Shareholders segment offers fund management services for absolute return/balanced mandates; and manages various products, such as the Asia Pacific equities, and Asian and global fixed income securities portfolios for Singapore statutory boards, government-linked corporations, public and private companies, insurance companies, and charity organizations. It is also involved in composite insurance, asset management, property investment, family takaful, and funds activities, as well as digital financial services. The company was founded in 1908 and is headquartered in Singapore. Great Eastern Holdings Limited is a subsidiary of Oversea-Chinese Banking Corporation Limited.

How the Company Makes Money

Great Eastern Holdings Limited generates revenue primarily through the sale of its insurance products, including life insurance, health insurance, and general insurance policies. The company earns premiums from policyholders who purchase these insurance products. Additionally, Great Eastern generates income from its investment portfolio, which includes equities, fixed income securities, and real estate. This investment income helps to support the company's financial stability and growth. Significant partnerships with banks and financial institutions also contribute to revenue by expanding the distribution channels for its products. Furthermore, Great Eastern benefits from economies of scale and operational efficiencies, enabling it to maintain competitive pricing and profitability.

Great Eastern Holdings Limited Financial Statement Overview

Summary

Great Eastern Holdings Limited shows strong revenue growth and profitability improvements. However, it faces challenges in operational efficiency with a zero EBIT margin and cash flow management issues, despite a stable balance sheet with low leverage.

Income Statement

Great Eastern Holdings Limited has shown a strong revenue growth rate of approximately 24.17% from 2023 to 2024, indicating a positive trajectory. The gross profit margin remains robust due to the nature of the insurance business. However, the EBIT margin is weak due to zero EBIT, suggesting challenges in operational efficiency. Despite this, the EBITDA margin is solid at 22.64%, reflecting healthy earnings before depreciation and amortization. Net profit margin improved to 14.02%, indicating better bottom-line performance compared to previous years.

Balance Sheet

The company maintains a conservative balance sheet with a low debt-to-equity ratio of 0.06, highlighting minimal leverage and reduced financial risk. The return on equity (ROE) is a respectable 11.46%, showcasing the company's ability to generate profits from shareholder investments. The equity ratio of 7.62% indicates a lower proportion of equity financing, which is typical in the insurance industry. Overall, the balance sheet reflects stability and financial health.

Cash Flow

The cash flow situation presents some concerns with a significant negative free cash flow in 2024 due to increased operating cash outflows. The operating cash flow to net income ratio is negative, indicating cash flow challenges relative to reported earnings. However, the free cash flow to net income ratio also suggests inefficiencies in converting profits into free cash flow. The company needs to address its cash flow management to ensure long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.10B	5.72B	20.58B	19.96B	21.47B
	Gross Profit
7.10B	3.33B	20.58B	19.96B	21.47B
	EBIT
1.54B	-1.60M	-2.70M	1.27B	-27.80M
	EBITDA
1.61B	1.16B	898.00M	1.35B	835.10M
	Net Income Common Stockholders
995.30M	774.60M	610.00M	1.11B	960.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.32B	6.30B	9.61B	9.12B	9.65B
	Total Assets
113.91B	109.03B	107.92B	110.39B	106.93B
	Total Debt
521.70M	51.50M	62.60M	74.40M	487.20M
	Net Debt
-3.88B	-6.25B	-9.55B	-9.04B	-9.16B
	Total Liabilities
105.12B	101.04B	98.39B	100.25B	97.45B
	Stockholders Equity
8.69B	7.89B	9.43B	10.03B	9.36B
Cash Flow		Free Cash Flow
-2.61B	-1.12B	6.64B	4.17B	4.24B
	Operating Cash Flow
-2.49B	-1.02B	6.71B	4.27B	4.34B
	Investing Cash Flow
520.90M	-1.83B	-5.89B	-4.08B	-603.30M
	Financing Cash Flow
62.20M	-448.80M	-330.80M	-724.80M	-306.20M

Great Eastern Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:G07, the sentiment is Positive. The current price of 25.8 is above the 20-day moving average (MA) of 25.80, above the 50-day MA of 25.80, and below the 200-day MA of 25.80, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 87.96 is Negative, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:G07.

Great Eastern Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G07	66 Neutral	S$12.21B	12.27	12.01%	6.98%	23.83%	28.49%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
DBSDF		$99.82B	11.91	17.99%	15.82%	―	―
OVCHF		$56.96B	10.11	13.78%	10.50%	―	―
UOVEF		$45.79B	10.31	13.43%	13.03%	―	―
HSHD		S$267.35B	10.64	10.78%	3.92%	―	―
HPAD		S$159.85B	―		―	―	―

Great Eastern Holdings Limited Corporate Events

Great Eastern Holdings Limited Announces Proposed Voluntary Delisting

Great Eastern Holdings Limited is undergoing a proposed voluntary delisting from the Singapore Exchange, facilitated by J.P. Morgan Securities Asia Private Limited on behalf of Oversea-Chinese Banking Corporation Limited. This conditional exit offer aims to acquire all issued ordinary shares of Great Eastern Holdings Limited not already owned by the Offeror or its subsidiaries, potentially impacting shareholders and the company’s market presence.

Great Eastern Holdings Granted Extension for Compliance with Listing Rules

Great Eastern Holdings Limited announced that it has been granted a further extension of time by the Singapore Exchange Securities Trading Limited to comply with the Listing Manual requirements. This extension allows the company to finalize its proposal, which includes a delisting, resumption of trading, adoption of a new constitution, and a proposed bonus issue, aimed at aligning with the relevant listing rules.

Great Eastern Holdings Granted Further Extension for Compliance

Great Eastern Holdings Limited has announced a further extension of time granted by the Singapore Exchange Securities Trading Limited to comply with the Listing Manual requirements. The company, with the assistance of Merrill Lynch (Singapore) Pte. Ltd. as its financial adviser, has made significant progress in formulating a proposal that addresses stakeholder interests and adheres to the relevant rules.

Great Eastern Achieves AA Rating with Stable Outlook from Fitch

Great Eastern Holdings Limited has received its first-time credit ratings from Fitch Ratings, which assigned an Insurer Financial Strength (IFS) Rating of AA to its five insurance subsidiaries in Singapore and Malaysia. This rating reflects the Group’s strong capitalization, low financial leverage, and robust company profile, along with a strategic uplift due to support from its parent company, Oversea-Chinese Banking Corporation Limited. The stable outlook underscores the Group’s solid market positioning and diversified earnings sources.

Great Eastern Appoints BofA Securities as Financial Adviser

Great Eastern Holdings Limited has appointed Merrill Lynch (Singapore) Pte. Ltd., also known as BofA Securities, as its financial adviser. This move is aimed at assisting the company in exploring options to comply with the relevant rules of the Listing Manual of the Singapore Exchange Securities Trading Limited, potentially impacting its operations and market positioning.