China Taiping Insurance Holdings Co Ltd revenue jumped on 88.8% in 2015
23/03/2016 • About China Taiping Insurance Holdings Co Ltd (
$966) • By InTwits
China Taiping Insurance Holdings Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Taiping Insurance Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 1.0%.
- CAPEX is quite volatile: 860 in 2015, 4,151 in 2014, 2,124 in 2013, 773 in 2012, 373 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.0%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Taiping Insurance Holdings Co Ltd ($966) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 53,221 | 64,097 | 93,561 | 85,117 | 160,668 | 88.8% |
| Net Income | 548 | 1,316 | 1,653 | 4,042 | 6,341 | 56.9% |
Balance Sheet
|
|---|
| Cash | 17,735 | 18,024 | 27,996 | 33,972 | 47,619 | 40.2% |
| Short Term Debt | 19,619 | 35,427 | 41,211 | 39,524 | 16,648 | -57.9% |
| Long Term Debt | 11,041 | 17,655 | 22,008 | 21,488 | 32,179 | 49.8% |
Cash flow
|
|---|
| Capex | 373 | 773 | 2,124 | 4,151 | 860 | -79.3% |
Ratios
|
|---|
| Revenue growth | 3.3% | 20.4% | 46.0% | -9.0% | 88.8% | |
| Net Income Margin | 1.0% | 2.1% | 1.8% | 4.7% | 3.9% | -0.8% |
| CAPEX, % of revenue | 0.7% | 1.2% | 2.3% | 4.9% | 0.5% | -4.3% |
| ROIC | 0.8% | 1.1% | 1.3% | 2.2% | 3.0% | 0.8% |
| ROE | 4.5% | 9.4% | 8.8% | 13.0% | 12.6% | -0.4% |
Revenue and profitability
The company's Revenue surged on 88.8% in 2015.
Net Income marign decreased slightly on 0.80 pp from 4.7% to 3.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.54%. The company's CAPEX/Revenue decreased slightly on 0.67 pp from 1.2% in 2012 to 0.54% in 2015. For the last three years the average CAPEX/Revenue was 2.6%.
Return on investment
The company operates at good ROE (12.63%) while ROIC is low (2.99%). ROIC increased slightly on 0.82 pp from 2.2% to 3.0% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt dropped on 20.0% in 2015 while cash surged on 40.2% in 2015.
Appendix 1: Peers in Insurance
Below you can find China Taiping Insurance Holdings Co 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% |
| Ping An Insurance Group Co of China Ltd ($2318) | | 25.1% | 24.2% | 25.8% | 30.8% |
| 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% | |
| |
|---|
| Median (10 companies) | 7.2% | 8.2% | 13.6% | 13.9% | 0.9% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | | 20.4% | 46.0% | -9.0% | 88.8% |
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% | 0.3% |
| Ping An Insurance Group Co of China Ltd ($2318) | 2.0% | 2.5% | 2.4% | 2.6% | 2.4% |
| 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 (10 companies) | 1.2% | 1.4% | 1.1% | 1.4% | 0.4% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 0.7% | 1.2% | 2.3% | 4.9% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Target Insurance Holdings Ltd ($6161) | | 2.7% | 5.8% | 7.4% | 6.2% |
| 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% | 1.9% |
| 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% |
| |
|---|
| Median (10 companies) | 1.9% | 2.2% | 2.5% | 2.9% | 2.3% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 0.8% | 1.1% | 1.3% | 2.2% | 3.0% |
