Ping An Insurance Group Co of China Ltd reports 38.0% Net Income growth and 30.8% Revenue growth
15/03/2016 • About Ping An Insurance Group Co of China Ltd (
$2318) • By InTwits
Ping An Insurance Group Co of China Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ping An Insurance Group Co of China Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 2.8%.
- CAPEX is quite volatile: 16,529 in 2015, 13,530 in 2014, 10,083 in 2013, 8,362 in 2012, 5,393 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ping An Insurance Group Co of China Ltd ($2318) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 271,176 | 339,239 | 421,485 | 530,082 | 693,501 | 30.8% |
| Net Income | 19,475 | 20,050 | 28,154 | 39,279 | 54,203 | 38.0% |
Balance Sheet
|
|---|
| Cash | 94,582 | 169,047 | 119,706 | 141,537 | 194,465 | 37.4% |
| Short Term Debt | 295,429 | 575,292 | 631,108 | 555,825 | 529,494 | -4.7% |
| Long Term Debt | 862,682 | 1,025,729 | 1,248,271 | 1,598,567 | 1,978,320 | 23.8% |
Cash flow
|
|---|
| Capex | 5,393 | 8,362 | 10,083 | 13,530 | 16,529 | 22.2% |
Ratios
|
|---|
| Revenue growth | 39.5% | 25.1% | 24.2% | 25.8% | 30.8% | |
| Net Income Margin | 7.2% | 5.9% | 6.7% | 7.4% | 7.8% | 0.4% |
| CAPEX, % of revenue | 2.0% | 2.5% | 2.4% | 2.6% | 2.4% | -0.2% |
| ROIC | 1.9% | 1.4% | 1.7% | 2.0% | 2.5% | 0.5% |
| ROE | 16.0% | 13.8% | 16.4% | 16.6% | 17.4% | 0.7% |
Revenue and profitability
Ping An Insurance Group Co of China Ltd's Revenue jumped on 30.8% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.4%. Ping An Insurance Group Co of China Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at good ROE (17.38%) while ROIC is low (2.47%). ROIC showed almost no change in 2015. ROE increased slightly on 0.74 pp from 16.6% to 17.4% in 2015.
Leverage (Debt)
Debt jumped on 16.4% in 2015 while cash surged on 37.4% in 2015.
Management team
The company's CEO is Ma Mingzhe "Peter". Ma Mingzhe "Peter" has 17 years tenure at the company. The company's CFO is Yao Bo "Jason". Yao Bo "Jason" has 14 years tenure at the company.
Appendix 1: Peers in Insurance
Below you can find Ping An Insurance Group Co of China Ltd benchmarking vs. other companies in Insurance industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manulife Financial Corp ($945) | | -43.8% | -37.7% | 203.5% | -38.2% |
| PICC Property & Casualty Co Ltd ($2328) | 6.9% | 18.7% | 18.1% | 16.9% | |
| AIA Group Ltd ($1299) | | 42.3% | 8.6% | 16.2% | -8.2% |
| People's Insurance Co Group of China Ltd ($1339) | 7.5% | 8.9% | 18.4% | 15.3% | |
| China Pacific Insurance Group Co Ltd ($2601) | 10.0% | 7.5% | 15.0% | 12.5% | |
| |
|---|
| Median (9 companies) | 5.7% | 8.9% | 14.8% | 12.5% | -23.2% |
|---|
| Ping An Insurance Group Co of China Ltd ($2318) | | 25.1% | 24.2% | 25.8% | 30.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Financial Holdings Ltd ($662) | 0.1% | 0.3% | 0.0% | 14.0% | |
| China Taiping Insurance Holdings Co Ltd ($966) | 0.7% | 1.2% | 2.3% | 4.9% | |
| AIA Group Ltd ($1299) | 0.6% | 2.0% | 2.2% | 1.8% | 0.6% |
| China Pacific Insurance Group Co Ltd ($2601) | 1.1% | 1.8% | 1.9% | 1.7% | |
| New China Life Insurance Co Ltd ($1336) | 1.4% | 1.2% | 1.6% | 1.6% | |
| |
|---|
| Median (9 companies) | 1.1% | 1.4% | 1.2% | 1.6% | 0.3% |
|---|
| Ping An Insurance Group Co of China Ltd ($2318) | 2.0% | 2.5% | 2.4% | 2.6% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 6.3% | 7.0% | 6.4% | 7.4% | |
| Asia Financial Holdings Ltd ($662) | -2.7% | 4.7% | 2.6% | 3.7% | |
| People's Insurance Co Group of China Ltd ($1339) | 3.1% | 3.1% | 2.7% | 3.2% | |
| AIA Group Ltd ($1299) | 2.0% | 3.1% | 2.9% | 3.2% | 2.5% |
| China Pacific Insurance Group Co Ltd ($2601) | 2.6% | 1.7% | 2.5% | 2.6% | |
| |
|---|
| Median (9 companies) | 1.4% | 1.7% | 2.5% | 2.6% | 1.8% |
|---|
| Ping An Insurance Group Co of China Ltd ($2318) | 1.9% | 1.4% | 1.7% | 2.0% | 2.5% |
