PICC Property & Casualty Co Ltd Net Income dropped on 17.5% in 2016 while Revenue increased on 7.9%
24/03/2017 • About PICC Property & Casualty Co Ltd (
$2328) • By InTwits
PICC Property & Casualty Co Ltd reported 2016 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 1.0%.
- The company has potentially unprofitable business model: ROIC is at 5.4%
- It operates with high leverage: Net Debt/EBITDA is 1.9x 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 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 162,790 | 192,336 | 224,811 | 265,156 | 285,988 | 7.9% |
| Net Income | 10,405 | 10,558 | 15,115 | 21,847 | 18,020 | -17.5% |
Balance Sheet
|
|---|
| Cash | 12,890 | 16,272 | 24,157 | 22,828 | 25,144 | 10.1% |
| Short Term Debt | 0 | 0 | 0 | 23,688 | 21,030 | -11.2% |
| Long Term Debt | 21,410 | 21,515 | 24,235 | 18,523 | 23,112 | 24.8% |
Cash flow
|
|---|
| Capex | 2,253 | 1,972 | 1,849 | 2,141 | 2,105 | -1.7% |
Ratios
|
|---|
| Revenue growth | 18.7% | 18.1% | 16.9% | 17.9% | 7.9% | |
| Net Income Margin | 6.4% | 5.5% | 6.7% | 8.2% | 6.3% | -1.9% |
| CAPEX, % of revenue | 1.4% | 1.0% | 0.8% | 0.8% | 0.7% | -0.1% |
| ROIC | 7.0% | 6.4% | 7.4% | 8.7% | 5.4% | -3.3% |
| ROE | 25.8% | 20.5% | 21.1% | 22.4% | 15.8% | -6.7% |
Revenue and profitability
PICC Property & Casualty Co Ltd's Revenue increased on 7.9%.
Net Income marign decreased slightly on 1.9 pp from 8.2% to 6.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.74% in 2016. The company's CAPEX/Revenue showed almost no change from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.79%.
Return on investment
The company operates at good ROE (15.79%) while ROIC is low (5.36%). ROIC decreased on 3.3 pp from 8.7% to 5.4% in 2016. ROE decreased on 6.7 pp from 22.4% to 15.8% in 2016.
Leverage (Debt)
Debt increased on 4.6% while cash jumped on 10.1%.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | | 46.0% | -9.0% | 88.8% | 3.7% |
| 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) | -7.5% | 5.3% | 9.0% | -8.2% | 20.8% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | | 18.1% | 16.9% | 17.9% | 7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 0.7% |
| 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% | 1.8% | 0.3% | 0.6% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 1.4% | 1.0% | 0.8% | 0.8% | 0.7% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AIA Group Ltd ($1299) | 3.1% | 2.9% | 3.2% | 2.5% | 3.2% |
| China Taiping Insurance Holdings Co Ltd ($966) | 1.1% | 1.3% | 2.2% | 3.0% | 2.4% |
| Manulife Financial Corp ($945) | 0.9% | 1.9% | 2.0% | 1.1% | 1.2% |
| Asia Financial Holdings Ltd ($662) | 4.7% | 2.6% | 3.7% | 1.9% | |
| |
|---|
| Median (4 companies) | 2.7% | 2.6% | 3.2% | 2.5% | 2.4% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 7.0% | 6.4% | 7.4% | 8.7% | 5.4% |
