People's Insurance Co Group of China Ltd revenue growth continued from 15.3% in 2014 to 15.5% in 2015
28/03/2016 • About People's Insurance Co Group of China Ltd (
$1339) • By InTwits
People's Insurance Co Group of China Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- People's Insurance Co Group of China Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 0.9%.
- CAPEX is quite volatile: 27,144 in 2015, 21,838 in 2014, 17,645 in 2013, 10,500 in 2012, 12,054 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.3%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
People's Insurance Co Group of China Ltd ($1339) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 236,291 | 257,349 | 304,738 | 351,496 | 406,011 | 15.5% |
| Net Income | 5,185 | 6,832 | 8,121 | 13,109 | 19,542 | 49.1% |
Balance Sheet
|
|---|
| Cash | 52,681 | 71,438 | 40,024 | 33,671 | 34,023 | 1.0% |
| Short Term Debt | 54,100 | 71,290 | 44,453 | 35,488 | 29,211 | -17.7% |
| Long Term Debt | 34,934 | 35,217 | 47,333 | 48,601 | 39,210 | -19.3% |
Cash flow
|
|---|
| Capex | 5,087 | 4,491 | 3,776 | 3,864 | 3,551 | -8.1% |
Ratios
|
|---|
| Revenue growth | 7.5% | 8.9% | 18.4% | 15.3% | 15.5% | |
| Net Income Margin | 2.2% | 2.7% | 2.7% | 3.7% | 4.8% | 1.1% |
| CAPEX, % of revenue | 2.2% | 1.7% | 1.2% | 1.1% | 0.9% | -0.2% |
| ROIC | 3.1% | 3.1% | 2.7% | 3.2% | 4.3% | 1.1% |
| ROE | 19.0% | 14.1% | 11.9% | 16.0% | 18.7% | 2.8% |
Revenue and profitability
People's Insurance Co Group of China Ltd's Revenue jumped on 15.5% in 2015.
Net Income marign increased slightly on 1.1 pp from 3.7% to 4.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 People's Insurance Co Group of China Ltd had CAPEX/Revenue of 0.87%. People's Insurance Co Group of China Ltd's CAPEX/Revenue decreased slightly on 0.87 pp from 1.7% in 2012 to 0.87% in 2015. For the last three years the average CAPEX/Revenue was 1.1%.
Return on investment
The company operates at good ROE (18.73%) while ROIC is low (4.31%). ROIC increased slightly on 1.1 pp from 3.2% to 4.3% in 2015. ROE increased on 2.8 pp from 16.0% to 18.7% in 2015.
Leverage (Debt)
Debt dropped on 18.6% in 2015 while cash increased slightly on 1.0% in 2015.
Appendix 1: Peers in Insurance
Below you can find People's Insurance Co Group 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 |
|---|
| 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% |
| PICC Property & Casualty Co Ltd ($2328) | | 18.7% | 18.1% | 16.9% | 17.9% |
| 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% | 13.1% | 13.6% | 11.7% | 14.2% |
|---|
| People's Insurance Co Group of China Ltd ($1339) | | 8.9% | 18.4% | 15.3% | 15.5% |
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% |
| PICC Property & Casualty Co Ltd ($2328) | 1.9% | 1.4% | 1.0% | 0.8% | 0.8% |
| AIA Group Ltd ($1299) | 0.6% | 2.0% | 2.2% | 1.8% | 0.6% |
| |
|---|
| Median (9 companies) | 0.9% | 1.3% | 1.3% | 1.6% | 0.6% |
|---|
| People's Insurance Co Group of China Ltd ($1339) | 2.2% | 1.7% | 1.2% | 1.1% | 0.9% |
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% | 8.7% |
| Target Insurance Holdings Ltd ($6161) | | 2.7% | 5.8% | 7.4% | 6.2% |
| 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% |
|---|
| People's Insurance Co Group of China Ltd ($1339) | 3.1% | 3.1% | 2.7% | 3.2% | 4.3% |
