PICC Property & Casualty Co Ltd reports 44.5% Net Income growth
28/03/2016 • About PICC Property & Casualty Co Ltd (
$2328) • By InTwits
PICC Property & Casualty Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PICC Property & Casualty Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 0.9%.
- CAPEX is quite volatile: 7,490 in 2015, 18,649 in 2014, 14,700 in 2013, 9,298 in 2012, 6,761 in 2011
- The company has business model with low profitability: ROIC is at 8.7%
- 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.
PICC Property & Casualty Co Ltd ($2328) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 137,124 | 162,790 | 192,336 | 224,811 | 265,156 | 17.9% |
| Net Income | 8,027 | 10,405 | 10,558 | 15,115 | 21,847 | 44.5% |
Balance Sheet
|
|---|
| Cash | 14,135 | 12,890 | 16,272 | 24,157 | 22,828 | -5.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | 23,688 | |
| Long Term Debt | 21,627 | 21,410 | 21,515 | 24,235 | 18,523 | -23.6% |
Cash flow
|
|---|
| Capex | 2,629 | 2,253 | 1,972 | 1,849 | 2,141 | 15.8% |
Ratios
|
|---|
| Revenue growth | 6.9% | 18.7% | 18.1% | 16.9% | 17.9% | |
| Net Income Margin | 5.9% | 6.4% | 5.5% | 6.7% | 8.2% | 1.5% |
| CAPEX, % of revenue | 1.9% | 1.4% | 1.0% | 0.8% | 0.8% | -0.0% |
| ROIC | 6.3% | 7.0% | 6.4% | 7.4% | 8.7% | 1.3% |
| ROE | 26.0% | 25.8% | 20.5% | 21.1% | 22.4% | 1.3% |
Revenue and profitability
The company's Revenue jumped on 17.9% in 2015.
Net Income marign increased slightly on 1.5 pp from 6.7% to 8.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
PICC Property & Casualty Co Ltd's CAPEX/Revenue was 0.81% in 2015. CAPEX/Revenue decreased slightly on 0.58 pp from 1.4% in 2012 to 0.81% in 2015. It's average CAPEX/Revenue for the last three years was 0.89%.
Return on investment
The company operates at good ROE (22.44%) while ROIC is low (8.67%). ROIC increased slightly on 1.3 pp from 7.4% to 8.7% in 2015. ROE increased slightly on 1.3 pp from 21.1% to 22.4% in 2015.
Leverage (Debt)
Debt jumped on 74.2% in 2015 while cash decreased on 5.5% in 2015.
Appendix 1: Peers in Insurance
Below you can find PICC Property & Casualty 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 |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | | 20.4% | 46.0% | -9.0% | 88.8% |
| Ping An Insurance Group Co of China Ltd ($2318) | | 25.1% | 24.2% | 25.8% | 30.8% |
| People's Insurance Co Group of China Ltd ($1339) | | 8.9% | 18.4% | 15.3% | 15.5% |
| China Life Insurance Co Ltd ($2628) | | 0.2% | 12.5% | 5.5% | 15.1% |
| China Pacific Insurance Group Co Ltd ($2601) | | 7.5% | 15.0% | 12.5% | 14.2% |
| |
|---|
| Median (9 companies) | 5.7% | 8.2% | 13.6% | 11.7% | 14.2% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | | 18.7% | 18.1% | 16.9% | 17.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping An Insurance Group Co of China Ltd ($2318) | 2.0% | 2.5% | 2.4% | 2.6% | 2.4% |
| China Life Insurance Co Ltd ($2628) | 1.4% | 1.4% | 0.9% | 1.1% | 1.7% |
| China Pacific Insurance Group Co Ltd ($2601) | 1.1% | 1.8% | 1.9% | 1.7% | 1.3% |
| People's Insurance Co Group of China Ltd ($1339) | 2.2% | 1.7% | 1.2% | 1.1% | 0.9% |
| AIA Group Ltd ($1299) | 0.6% | 2.0% | 2.2% | 1.8% | 0.6% |
| |
|---|
| Median (9 companies) | 0.9% | 1.3% | 1.4% | 1.6% | 0.6% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 1.9% | 1.4% | 1.0% | 0.8% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Target Insurance Holdings Ltd ($6161) | | 2.7% | 5.8% | 7.4% | 6.2% |
| People's Insurance Co Group of China Ltd ($1339) | 3.1% | 3.1% | 2.7% | 3.2% | 4.3% |
| China Pacific Insurance Group Co Ltd ($2601) | 2.6% | 1.7% | 2.5% | 2.6% | 3.4% |
| China Taiping Insurance Holdings Co Ltd ($966) | 0.8% | 1.1% | 1.3% | 2.2% | 3.0% |
| AIA Group Ltd ($1299) | 2.0% | 3.1% | 2.9% | 3.2% | 2.5% |
| |
|---|
| Median (9 companies) | 1.4% | 1.5% | 2.2% | 2.4% | 2.5% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 6.3% | 7.0% | 6.4% | 7.4% | 8.7% |
