China Taiping Insurance Holdings Co Ltd revenue growth decelerated to 3.6% in FY2016 vs. 88.8% a year earliner
23/03/2017 • About China Taiping Insurance Holdings Co Ltd (
$966) • By InTwits
China Taiping Insurance Holdings Co Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Taiping Insurance Holdings Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 0.5%.
- CAPEX is quite volatile: 1,089 in 2016, 860 in 2015, 4,151 in 2014, 2,124 in 2013, 773 in 2012
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China Taiping Insurance Holdings Co Ltd ($966) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 64,097 | 93,561 | 85,117 | 160,668 | 166,564 | 3.7% |
| Net Income | 1,316 | 1,653 | 4,042 | 6,341 | 4,832 | -23.8% |
Balance Sheet
|
|---|
| Cash | 18,024 | 27,996 | 33,972 | 47,619 | 38,557 | -19.0% |
| Short Term Debt | 35,427 | 41,211 | 39,524 | 16,648 | 732 | -95.6% |
| Long Term Debt | 17,655 | 22,008 | 21,488 | 32,179 | 47,542 | 47.7% |
Cash flow
|
|---|
| Capex | 773 | 2,124 | 4,151 | 860 | 1,089 | 26.6% |
Ratios
|
|---|
| Revenue growth | 20.4% | 46.0% | -9.0% | 88.8% | 3.7% | |
| Net Income Margin | 2.1% | 1.8% | 4.7% | 3.9% | 2.9% | -1.0% |
| CAPEX, % of revenue | 1.2% | 2.3% | 4.9% | 0.5% | 0.7% | 0.1% |
| ROIC | 1.1% | 1.3% | 2.2% | 3.0% | 2.4% | -0.6% |
| ROE | 9.4% | 8.8% | 13.0% | 12.6% | 8.1% | -4.5% |
Revenue and profitability
The company's Revenue increased on 3.7%.
Net Income marign decreased slightly on 1.0 pp from 3.9% to 2.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.65% in 2016. China Taiping Insurance Holdings Co Ltd's CAPEX/Revenue decreased slightly on 1.6 pp from 2.3% in 2013 to 0.65% in 2016. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (2.41%) and ROE (8.11%). ROIC decreased slightly on 0.58 pp from 3.0% to 2.4% in 2016. ROE decreased on 4.5 pp from 12.6% to 8.1% in 2016.
Leverage (Debt)
Debt decreased slightly on 1.1% while cash dropped on 19.0%.
Appendix 1: Peers in Insurance
Below you can find China Taiping Insurance Holdings 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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) | | -4.3% | 9.0% | -16.8% | |
| Manulife Financial Corp ($945) | | -37.7% | 203.5% | -38.2% | 57.5% |
| |
|---|
| Median (5 companies) | 5.6% | 5.3% | 16.2% | -8.2% | 39.1% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | | 46.0% | -9.0% | 88.8% | 3.7% |
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% |
| 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% | |
| Manulife Financial Corp ($945) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (5 companies) | 0.3% | 0.0% | 0.8% | 0.3% | 0.3% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 1.2% | 2.3% | 4.9% | 0.5% | 0.7% |
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% | |
| 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% | |
| Manulife Financial Corp ($945) | 0.9% | 1.9% | 2.0% | 1.1% | 1.2% |
| |
|---|
| Median (5 companies) | 3.1% | 2.9% | 3.7% | 2.5% | 2.2% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 1.1% | 1.3% | 2.2% | 3.0% | 2.4% |
