China Pacific Insurance Group Co Ltd Net Income jumped on 60.4% in 2015
25/03/2016 • About China Pacific Insurance Group Co Ltd (
$2601) • By InTwits
China Pacific Insurance Group Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Pacific Insurance Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 1.0%.
- CAPEX is quite volatile: 6,427 in 2015, 11,432 in 2014, 5,292 in 2013, 3,588 in 2012, 1,973 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.4%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Pacific Insurance Group Co Ltd ($2601) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 155,517 | 167,157 | 192,217 | 216,205 | 246,963 | 14.2% |
| Net Income | 8,313 | 5,077 | 9,261 | 11,049 | 17,728 | 60.4% |
Balance Sheet
|
|---|
| Cash | 14,903 | 23,875 | 16,561 | 10,766 | 8,678 | -19.4% |
| Short Term Debt | 32,105 | 50,143 | 25,199 | 26,908 | 28,981 | 7.7% |
| Long Term Debt | 8,080 | 15,579 | 15,765 | 19,759 | 19,572 | -0.9% |
Cash flow
|
|---|
| Capex | 1,745 | 3,057 | 3,676 | 3,645 | 3,257 | -10.6% |
Ratios
|
|---|
| Revenue growth | 10.0% | 7.5% | 15.0% | 12.5% | 14.2% | |
| Net Income Margin | 5.3% | 3.0% | 4.8% | 5.1% | 7.2% | 2.1% |
| CAPEX, % of revenue | 1.1% | 1.8% | 1.9% | 1.7% | 1.3% | -0.4% |
| ROIC | 2.6% | 1.7% | 2.5% | 2.6% | 3.4% | 0.9% |
| ROE | 10.6% | 5.9% | 9.5% | 10.2% | 14.2% | 3.9% |
Revenue and profitability
China Pacific Insurance Group Co Ltd's Revenue surged on 14.2% in 2015.
Net Income marign increased on 2.1 pp from 5.1% to 7.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.3% in 2015. The company showed small CAPEX/Revenue decline of 0.51 pp from 1.8% in 2012 to 1.3% in 2015. Average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (14.16%) while ROIC is low (3.44%). ROIC increased slightly on 0.86 pp from 2.6% to 3.4% in 2015. ROE increased on 3.9 pp from 10.2% to 14.2% in 2015.
Leverage (Debt)
Debt increased on 4.0% in 2015 while cash dropped on 19.4% in 2015.
Appendix 1: Peers in Insurance
Below we provide China Pacific Insurance Group Co Ltd benchmarking against other companies in Insurance industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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) | 6.9% | 13.8% | 13.6% | 13.1% | 10.0% |
|---|
| China Pacific Insurance Group Co Ltd ($2601) | | 7.5% | 15.0% | 12.5% | 14.2% |
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% |
| China Taiping Insurance Holdings Co Ltd ($966) | 0.7% | 1.2% | 2.3% | 4.9% | 0.5% |
| 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% |
| New China Life Insurance Co Ltd ($1336) | 1.4% | 1.2% | 1.6% | 1.6% | |
| |
|---|
| Median (10 companies) | 1.0% | 1.3% | 1.1% | 1.4% | 0.5% |
|---|
| China Pacific Insurance Group Co Ltd ($2601) | 1.1% | 1.8% | 1.9% | 1.7% | 1.3% |
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) | 1.4% | 2.0% | 2.2% | 2.7% | 2.5% |
|---|
| China Pacific Insurance Group Co Ltd ($2601) | 2.6% | 1.7% | 2.5% | 2.6% | 3.4% |
