Ping An Insurance Group Co of China Ltd Net Income surged on 15.1% in 2016 and Revenue increased on 5.1%
22/03/2017 • About Ping An Insurance Group Co of China Ltd (
$2318) • By InTwits
Ping An Insurance Group Co of China Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ping An Insurance Group Co of China Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 0.4%.
- The company has potentially unprofitable business model: ROIC is at 2.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ping An Insurance Group Co of China Ltd ($2318) key annual financial indicators
| mln. CNY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 339,239 | 421,485 | 530,082 | 693,501 | 775,858 | 11.9% |
| Net Income | 20,050 | 28,154 | 39,279 | 54,203 | 62,394 | 15.1% |
Balance Sheet
|
|---|
| Cash | 169,047 | 119,706 | 141,537 | 194,465 | 462,931 | 138.1% |
| Short Term Debt | 575,292 | 631,108 | 555,825 | 529,494 | 673,960 | 27.3% |
| Long Term Debt | 1,025,729 | 1,248,271 | 1,598,567 | 1,978,320 | 349,825 | -82.3% |
Cash flow
|
|---|
| Capex | 8,362 | 10,083 | 13,530 | 16,529 | 16,624 | 0.6% |
Ratios
|
|---|
| Revenue growth | 25.1% | 24.2% | 25.8% | 30.8% | 11.9% | |
| Net Income Margin | 5.9% | 6.7% | 7.4% | 7.8% | 8.0% | 0.2% |
| CAPEX, % of revenue | 2.5% | 2.4% | 2.6% | 2.4% | 2.1% | -0.2% |
| ROIC | 1.4% | 1.7% | 2.0% | 2.5% | 2.2% | -0.2% |
| ROE | 13.8% | 16.4% | 16.6% | 17.4% | 17.4% | 0.0% |
Ping An Insurance Group Co of China Ltd ($2318) key quoterly financial indicators
| mln. CNY | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 224,517 | 183,568 | 185,004 | 182,769 | | | | |
| Net Income | 20,700 | 20,076 | 15,732 | 5,886 | | | | |
Balance Sheet
|
|---|
| Cash | 544,311 | 421,698 | 449,274 | 462,931 | | | | |
| Short Term Debt | 492,559 | 519,450 | 470,172 | 673,960 | | | | |
| Long Term Debt | 311,602 | 386,445 | 405,335 | 349,825 | | | | |
Ratios
|
|---|
| Net Income Margin | 9.2% | 10.9% | 8.5% | 3.2% | | | | |
Revenue and profitability
The company's Revenue jumped on 11.9%.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.1%. Ping An Insurance Group Co of China Ltd showed almost no change in CAPEX/Revenue from 2013 to 2016. Average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at good ROE (17.39%) while ROIC is low (2.22%). ROIC showed almost no change in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Debt dropped on 59.2% while cash jumped on 138%.
Management team
The company's CEO Ma Mingzhe "Peter" has spent 17 years at the company. The company's CFO Yao Bo "Jason" has spent 14 years at the company.
Appendix 1: Peers in Insurance
Below we provide Ping An Insurance Group Co of China 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 20.4% | 46.0% | -9.0% | 88.8% | |
| PICC Property & Casualty Co Ltd ($2328) | 18.7% | 18.1% | 16.9% | 17.9% | |
| Target Insurance Holdings Ltd ($6161) | -7.5% | 5.3% | 5.1% | 10.0% | |
| AIA Group Ltd ($1299) | | 8.6% | 16.2% | -8.2% | 20.8% |
| Asia Financial Holdings Ltd ($662) | 113.9% | -4.3% | 9.0% | -16.8% | |
| |
|---|
| Median (6 companies) | 19.6% | 7.0% | 12.6% | 0.9% | 39.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 1.4% | 1.0% | 0.8% | 0.8% | |
| AIA Group Ltd ($1299) | 2.0% | 2.2% | 1.8% | 0.6% | 0.6% |
| China Taiping Insurance Holdings Co Ltd ($966) | 1.2% | 2.3% | 4.9% | 0.5% | |
| Asia Financial Holdings Ltd ($662) | 0.3% | 0.0% | 14.0% | 0.3% | |
| Target Insurance Holdings Ltd ($6161) | 0.2% | 0.0% | 0.0% | 0.2% | |
| |
|---|
| Median (6 companies) | 0.7% | 0.5% | 1.3% | 0.4% | 0.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 7.0% | 6.4% | 7.4% | 8.7% | |
| Target Insurance Holdings Ltd ($6161) | 2.7% | 5.8% | 7.4% | 6.2% | |
| China Taiping Insurance Holdings Co Ltd ($966) | 1.1% | 1.3% | 2.2% | 3.0% | |
| AIA Group Ltd ($1299) | 3.1% | 2.9% | 3.2% | 2.5% | 3.2% |
| Asia Financial Holdings Ltd ($662) | 4.7% | 2.6% | 3.7% | 1.9% | |
| |
|---|
| Median (6 companies) | 2.9% | 2.7% | 3.4% | 2.7% | 2.2% |
|---|
