PICC Property & Casualty Co Ltd revenue growth accelerated to 13.7% in 2017 vs. 7.9% a year earliner
23/03/2018 • About PICC Property & Casualty Co Ltd (
$2328) • By InTwits
PICC Property & Casualty Co Ltd reported 2017 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 0.8%.
- The company has potentially unprofitable business model: ROIC is at 5.8%
- It operates with high leverage: Net Debt/EBITDA is 0.5x 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 | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 192,336 | 224,811 | 265,156 | 285,988 | 325,291 | 13.7% |
| Net Income | 10,558 | 15,115 | 21,847 | 18,020 | 19,807 | 9.9% |
Balance Sheet
|
|---|
| Cash | 16,272 | 24,157 | 22,828 | 25,144 | 34,688 | 38.0% |
| Short Term Debt | 0 | 0 | 23,688 | 21,030 | 23,121 | 9.9% |
| Long Term Debt | 21,515 | 24,235 | 18,523 | 23,112 | 23,262 | 0.6% |
Cash flow
|
|---|
| Capex | 1,972 | 1,849 | 2,141 | 2,105 | 1,730 | -17.8% |
Ratios
|
|---|
| Revenue growth | 18.1% | 16.9% | 17.9% | 7.9% | 13.7% | |
| Net Income Margin | 5.5% | 6.7% | 8.2% | 6.3% | 6.1% | -0.2% |
| CAPEX, % of revenue | 1.0% | 0.8% | 0.8% | 0.7% | 0.5% | -0.2% |
| ROIC | 6.4% | 7.4% | 8.7% | 5.4% | 5.8% | 0.5% |
| ROE | 20.5% | 21.1% | 22.4% | 15.8% | 15.7% | -0.1% |
Revenue and profitability
PICC Property & Casualty Co Ltd's Revenue jumped on 13.7%.
Net Income marign showed almost no change in 2017.
Capital expenditures (CAPEX) and working capital investments
In 2017 PICC Property & Casualty Co Ltd had CAPEX/Revenue of 0.53%. PICC Property & Casualty Co Ltd showed almost no change in CAPEX/Revenue from 2014 to 2017. Average CAPEX/Revenue for the last three years was 0.69%.
Return on investment
The company operates at good ROE (15.69%) while ROIC is low (5.83%). ROIC showed almost no change in 2017. ROE showed almost no change in 2017.
Leverage (Debt)
Debt increased on 5.1% while cash surged on 38.0%.
Appendix 1: Peers in Insurance
Below we provide PICC Property & Casualty 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% | |
| China Taiping Insurance Holdings Co Ltd ($966) | | -9.0% | 88.8% | 3.7% | 17.7% |
| |
|---|
| Median (3 companies) | 0.5% | 9.0% | -8.2% | 20.8% | 17.7% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | | 16.9% | 17.9% | 7.9% | 13.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| China Taiping Insurance Holdings Co Ltd ($966) | 2.3% | 4.9% | 0.5% | 0.7% | 1.8% |
| 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% | 1.8% | 0.3% | 0.6% | 1.8% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 1.0% | 0.8% | 0.8% | 0.7% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| AIA Group Ltd ($1299) | 2.9% | 3.2% | 2.5% | 3.2% | |
| China Taiping Insurance Holdings Co Ltd ($966) | 1.3% | 2.2% | 3.0% | 2.4% | 2.5% |
| 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) | 2.6% | 3.2% | 2.5% | 2.4% | 2.5% |
|---|
| PICC Property & Casualty Co Ltd ($2328) | 6.4% | 7.4% | 8.7% | 5.4% | 5.8% |
