China Taiping Insurance Holdings Co Ltd revenue jumped on 17.7%
23/03/2018 • About China Taiping Insurance Holdings Co Ltd (
$966) • By InTwits
China Taiping Insurance Holdings Co Ltd reported 2017 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 2.0%. At the same time it's a lot of higher than industry average of 0.8%.
- CAPEX is quite volatile: 3,616 in 2017, 1,089 in 2016, 860 in 2015, 4,151 in 2014, 2,124 in 2013
- The company has potentially unprofitable business model: ROIC is at 2.5%
- It operates with high leverage: Net Debt/EBITDA is 3.3x 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 | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 93,561 | 85,117 | 160,668 | 166,564 | 196,100 | 17.7% |
| Net Income | 1,653 | 4,042 | 6,341 | 4,832 | 6,136 | 27.0% |
Balance Sheet
|
|---|
| Cash | 27,996 | 33,972 | 47,619 | 38,557 | 39,265 | 1.8% |
| Short Term Debt | 41,211 | 39,524 | 16,648 | 732 | 15,070 | 1,958.1% |
| Long Term Debt | 22,008 | 21,488 | 32,179 | 47,542 | 52,147 | 9.7% |
Cash flow
|
|---|
| Capex | 2,124 | 4,151 | 860 | 1,089 | 3,616 | 231.9% |
Ratios
|
|---|
| Revenue growth | 46.0% | -9.0% | 88.8% | 3.7% | 17.7% | |
| Net Income Margin | 1.8% | 4.7% | 3.9% | 2.9% | 3.1% | 0.2% |
| CAPEX, % of revenue | 2.3% | 4.9% | 0.5% | 0.7% | 1.8% | 1.2% |
| ROIC | 1.3% | 2.2% | 3.0% | 2.4% | 2.5% | 0.1% |
| ROE | 8.8% | 13.0% | 12.6% | 8.1% | 10.2% | 2.1% |
Revenue and profitability
China Taiping Insurance Holdings Co Ltd's Revenue surged on 17.7%.
Net Income marign showed almost no change in 2017.
Capital expenditures (CAPEX) and working capital investments
China Taiping Insurance Holdings Co Ltd's CAPEX/Revenue was 1.8% in 2017. The company showed decline in CAPEX/Revenue of 3.0 pp from 4.9% in 2014 to 1.8% in 2017. It's average CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at low ROIC (2.50%) and ROE (10.24%). ROIC showed almost no change in 2017. ROE increased on 2.1 pp from 8.1% to 10.2% in 2017.
Leverage (Debt)
Debt jumped on 39.2% while cash increased slightly on 1.8%.
Appendix 1: Peers in Insurance
Below we provide China Taiping Insurance Holdings 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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Manulife Financial Corp ($945) | -37.7% | 203.5% | -38.2% | 57.5% | |
| AIA Group Ltd ($1299) | 8.6% | 16.2% | -8.2% | 20.8% | |
| PICC Property & Casualty Co Ltd ($2328) | | 16.9% | 17.9% | 7.9% | 13.7% |
| |
|---|
| Median (3 companies) | 0.5% | 16.2% | -8.2% | 20.8% | 13.7% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | | -9.0% | 88.8% | 3.7% | 17.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 1.0% | 0.8% | 0.8% | 0.7% | 0.5% |
| AIA Group Ltd ($1299) | 2.2% | 1.8% | 0.6% | 0.6% | |
| Manulife Financial Corp ($945) | 0.0% | 0.0% | 0.0% | 0.0% | |
| |
|---|
| Median (3 companies) | 0.0% | 0.8% | 0.3% | 0.6% | 0.5% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 2.3% | 4.9% | 0.5% | 0.7% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 6.4% | 7.4% | 8.7% | 5.4% | 5.8% |
| AIA Group Ltd ($1299) | 2.9% | 3.2% | 2.5% | 3.2% | |
| Manulife Financial Corp ($945) | 1.9% | 2.0% | 1.1% | 1.2% | |
| Asia Financial Holdings Ltd ($662) | 2.6% | 3.7% | 1.9% | | |
| Target Insurance Holdings Ltd ($6161) | 5.8% | 7.4% | 6.2% | | |
| |
|---|
| Median (5 companies) | 2.9% | 3.7% | 2.5% | 3.2% | 5.8% |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 1.3% | 2.2% | 3.0% | 2.4% | 2.5% |
