New China Life Insurance Co Ltd Net Income surged on 34.3% in 2015
29/03/2016 • About New China Life Insurance Co Ltd (
$1336) • By InTwits
New China Life Insurance Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New China Life Insurance Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 0.9%.
- 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 2.0%
- 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.
New China Life Insurance Co Ltd ($1336) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 108,610 | 111,699 | 128,217 | 142,094 | 157,918 | 11.1% |
| Net Income | 2,799 | 2,933 | 4,422 | 6,406 | 8,601 | 34.3% |
Balance Sheet
|
|---|
| Cash | 21,095 | 25,066 | 18,570 | 14,503 | 13,904 | -4.1% |
| Short Term Debt | 32,481 | 55,437 | 52,211 | 59,234 | 19,838 | -66.5% |
| Long Term Debt | 5,073 | 15,000 | 15,000 | 19,000 | 19,000 | 0.0% |
Cash flow
|
|---|
| Capex | 1,567 | 1,339 | 1,995 | 2,278 | 2,475 | 8.6% |
Ratios
|
|---|
| Revenue growth | 5.7% | 2.8% | 14.8% | 10.8% | 11.1% | |
| Net Income Margin | 2.6% | 2.6% | 3.4% | 4.5% | 5.4% | 0.9% |
| CAPEX, % of revenue | 1.4% | 1.2% | 1.6% | 1.6% | 1.6% | -0.0% |
| ROIC | 1.2% | 0.9% | 1.3% | 1.6% | 2.0% | 0.5% |
| ROE | 14.8% | 8.7% | 11.8% | 14.6% | 16.2% | 1.6% |
Revenue and profitability
New China Life Insurance Co Ltd's Revenue jumped on 11.1% in 2015.
Net Income marign increased slightly on 0.94 pp from 4.5% to 5.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
New China Life Insurance Co Ltd's CAPEX/Revenue was 1.6% in 2015. New China Life Insurance Co Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (16.20%) while ROIC is low (2.04%). ROIC showed almost no change in 2015. ROE increased slightly on 1.6 pp from 14.6% to 16.2% in 2015.
Leverage (Debt)
Debt dropped on 50.4% in 2015 while cash decreased on 4.1% in 2015.
Management team
The company's CEO is Wan Feng. Wan Feng has 2 years tenure at the company.
Appendix 1: Peers in Insurance
Below we provide New China Life Insurance 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 |
|---|
| 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% |
| 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% |
| |
|---|
| Median (10 companies) | | 13.8% | 13.7% | 13.9% | 14.7% |
|---|
| New China Life Insurance Co Ltd ($1336) | | 2.8% | 14.8% | 10.8% | 11.1% |
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% |
| PICC Property & Casualty Co Ltd ($2328) | 1.9% | 1.4% | 1.0% | 0.8% | 0.8% |
| |
|---|
| Median (10 companies) | 0.9% | 1.4% | 1.1% | 1.4% | 0.7% |
|---|
| New China Life Insurance Co Ltd ($1336) | 1.4% | 1.2% | 1.6% | 1.6% | 1.6% |
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% |
| 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% |
| |
|---|
| Median (10 companies) | 1.9% | 2.2% | 2.5% | 2.9% | 2.7% |
|---|
| New China Life Insurance Co Ltd ($1336) | 1.2% | 0.9% | 1.3% | 1.6% | 2.0% |
