China Life Insurance (601628.SS)

Financials · Shanghai · China

CN¥39.17+9.38% today

Fundamentals

Market capCN¥1.06T

P/E ratio7.3

Dividend yield2.29%

Revenue growth (YoY)-15.2%

Profit margin42.3%

Return on equity25.5%

52-week rangeCN¥32.32 to CN¥51.92

Valuation and ratings

DCF fair valueCN¥43.52

Upside to fair value+11.1%

Moat score85/100

Overall rating77/100, Strong Buy

China Life Insurance trades at CN¥39.17, close to the CN¥43.52 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.

Our moat model scores it 85 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 7.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About China Life Insurance

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People's Republic of China. The company operates through Life Insurance Business, Health Insurance Business, Accident Insurance Business, and Other Businesses segments. It offers life, annuity, health, and accident insurance products to individuals and groups. The company was founded in 1949 and is based in Beijing, the People's Republic of China. China Life Insurance Company Limited operates as a subsidiary of China Life Insurance (Group) Company.

Industry: Insurance - LifeEmployees: 97,505HQ: China

601628.SS passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Deep value, with a pulse

A very low earnings multiple is usually a warning. This screen demands a low multiple AND evidence the business still works.

High return on equity, low debt

A high ROE is easy to fake with borrowing. This screen demands the return without the leverage, which is a much shorter list.

High margin machines

Companies that keep an unusually large share of every pound they sell. That is pricing power made visible.

Highest conviction

The best overall scores in our universe, restricted to companies where we actually hold enough data to have an opinion worth reading.

Common questions

Is China Life Insurance (601628.SS) undervalued?

Against our discounted cash flow estimate of CN¥43.52, 601628.SS at CN¥39.17 is 11% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is 601628.SS's P/E ratio?

601628.SS trades at 7.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for 601628.SS, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open 601628.SS in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.