China Pacific Insurance Group Co Ltd reports 18.2% revenue growth in 2017
29/03/2018 • About China Pacific Insurance Group Co Ltd (
$2601) • By InTwits
China Pacific Insurance Group Co Ltd reported 2017 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China Pacific Insurance Group Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 0.8%.
- CAPEX is quite volatile: 10,244 in 2017, 10,681 in 2016, 7,490 in 2015, 18,649 in 2014, 14,700 in 2013
- The company has potentially unprofitable business model: ROIC is at 2.4%
- 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.
China Pacific Insurance Group Co Ltd ($2601) key annual financial indicators
| mln. CNY | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 192,217 | 216,205 | 246,963 | 270,186 | 319,405 | 18.2% |
| Net Income | 9,261 | 11,049 | 17,728 | 12,057 | 14,662 | 21.6% |
Balance Sheet
|
|---|
| Cash | 16,561 | 10,766 | 8,678 | 15,257 | 10,705 | -29.8% |
| Short Term Debt | 25,199 | 26,908 | 28,981 | 39,104 | 66,243 | 69.4% |
| Long Term Debt | 15,765 | 19,759 | 19,572 | 11,498 | 3,999 | -65.2% |
Cash flow
|
|---|
| Capex | 3,676 | 3,645 | 3,257 | 6,079 | 4,218 | -30.6% |
Ratios
|
|---|
| Revenue growth | 15.0% | 12.5% | 14.2% | 9.4% | 18.2% | |
| Net Income Margin | 4.8% | 5.1% | 7.2% | 4.5% | 4.6% | 0.1% |
| CAPEX, % of revenue | 1.9% | 1.7% | 1.3% | 2.2% | 1.3% | -0.9% |
| ROIC | 2.5% | 2.6% | 3.4% | 2.0% | 2.4% | 0.4% |
| ROE | 9.5% | 10.2% | 14.2% | 9.1% | 10.9% | 1.8% |
China Pacific Insurance Group Co Ltd ($2601) key quoterly financial indicators
| mln. CNY | 17Q1 | 17Q2 | 17Q3 | 17Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 108,101 | 72,262 | 82,529 | 61,900 | 27.7% | 16.1% | 19.3% | 14.4% |
| Net Income | 2,000 | 4,509 | 4,417 | 3,736 | -9.0% | 14.4% | 64.4% | 15.7% |
Balance Sheet
|
|---|
| Cash | 15,230 | 16,452 | 13,495 | 11,660 | 9.7% | 55.5% | 27.5% | -23.6% |
| Short Term Debt | 59,466 | 62,700 | 88,813 | 66,243 | 181.5% | 50.8% | 136.4% | 69.4% |
| Long Term Debt | 11,498 | 11,498 | 3,998 | 3,999 | -41.0% | -41.0% | -79.5% | -65.2% |
Ratios
|
|---|
| Net Income Margin | 1.9% | 6.2% | 5.4% | 6.0% | -0.7% | -0.1% | 1.5% | 0.1% |
Revenue and profitability
The company's Revenue jumped on 18.2%. Revenue growth showed slow down in 17Q4 - it was 14.4% YoY.
Net Income marign showed almost no change in 2017.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.3% in 2017. China Pacific Insurance Group Co Ltd's CAPEX/Revenue showed almost no change from 2014 to 2017. Average CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (2.40%) and ROE (10.89%). ROIC showed almost no change in 2017. ROE increased slightly on 1.8 pp from 9.1% to 10.9% in 2017.
Leverage (Debt)
Debt jumped on 38.8% while cash dropped on 29.8%.
Appendix 1: Peers in Insurance
Below you can find China Pacific Insurance Group 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 | 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% |
|---|
