People's Insurance Co Group of China Ltd revenue growth continued to 9.1% in 2017 vs. 9.2% a year earliner
23/03/2018 • About People's Insurance Co Group of China Ltd (
$1339) • By InTwits
People's Insurance Co Group of China Ltd reported 2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- People's Insurance Co Group of China Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 2.9%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
People's Insurance Co Group of China Ltd ($1339) key annual financial indicators
| mln. CNY | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 304,738 | 351,496 | 406,011 | 443,323 | 483,775 | 9.1% |
| Net Income | 8,121 | 13,109 | 19,542 | 14,245 | 16,099 | 13.0% |
Balance Sheet
|
|---|
| Cash | 40,024 | 33,671 | 34,023 | 39,804 | 29,528 | -25.8% |
| Short Term Debt | 44,453 | 35,488 | 29,211 | 33,066 | 41,226 | 24.7% |
| Long Term Debt | 47,333 | 48,601 | 39,210 | 46,084 | 49,801 | 8.1% |
Cash flow
|
|---|
| Capex | 3,776 | 3,864 | 3,551 | 3,621 | 3,125 | -13.7% |
Ratios
|
|---|
| Revenue growth | 18.4% | 15.3% | 15.5% | 9.2% | 9.1% | |
| Net Income Margin | 2.7% | 3.7% | 4.8% | 3.2% | 3.3% | 0.1% |
| CAPEX, % of revenue | 1.2% | 1.1% | 0.9% | 0.8% | 0.6% | -0.2% |
| ROIC | 2.7% | 3.2% | 4.3% | 2.2% | 2.9% | 0.6% |
| ROE | 11.9% | 16.0% | 18.7% | 11.9% | 12.2% | 0.3% |
Revenue and profitability
The company's Revenue increased on 9.1%.
Net Income marign showed almost no change in 2017.
Capital expenditures (CAPEX) and working capital investments
In 2017 People's Insurance Co Group of China Ltd had CAPEX/Revenue of 0.65%. People's Insurance Co Group of China Ltd showed almost no change in CAPEX/Revenue from 2014 to 2017. It's average level of CAPEX/Revenue for the last three years was 0.78%.
Return on investment
The company operates at good ROE (12.24%) while ROIC is low (2.85%). ROIC increased slightly on 0.63 pp from 2.2% to 2.9% in 2017. ROE showed almost no change in 2017.
Leverage (Debt)
Debt surged on 15.0% while cash dropped on 25.8%.
Appendix 1: Peers in Insurance
Below we provide People's Insurance Co Group 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 | 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% |
| China Taiping Insurance Holdings Co Ltd ($966) | | -9.0% | 88.8% | 3.7% | 17.7% |
| |
|---|
| Median (4 companies) | 0.5% | 12.6% | 0.9% | 14.3% | 15.7% |
|---|
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% |
| 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 (4 companies) | 0.5% | 1.3% | 0.4% | 0.6% | 1.2% |
|---|
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% | |
| 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% | | |
| |
|---|
| Median (6 companies) | 2.7% | 3.4% | 2.7% | 2.8% | 4.2% |
|---|
