China Life Insurance Co Ltd (HKG:2628) Target $40

China Life Insurance Co Ltd (HKG:2628) Target $40

China Life Insurance Co Ltd (HKG:2628) Target $40

This is one worth buying in Hong Kong.

China Life, the country’s biggest life insurer, estimates that its net profits for the first three quarters will surge by 95 percent due to increased investment return.

Preliminary calculations show that the company’s profits during the January-September period reached 13.5 billion yuan (about 2 billion U.S. dollars), up 95 percent year on year, according to a statement filed to the Shanghai Stock Exchange.

Earnings per share stood at 0.47 yuan in the reporting period, said the statement.

The company said the main reason behind the profit surge was higher returns on investment, and further details will be revealed in its upcoming third-quarter report.

In the first half of this year, China Life reported a 17.8 percent year-on-year rise in its net profit.

Historical Surprises

Sales and Profit Figures in China Yuan Renminbi (CNY)
Earnings and Dividend Figures in China Yuan Renminbi (CNY)
Estimates vs Actual Estimate Actual Difference Surprise %
Earnings (per share)
Quarter Ending Jun-17 0.46 0.22 0.24 52.17
Quarter Ending Mar-17 0.22 0.21 0.01 4.55
Quarter Ending Sep-16 0.05 0.19 0.14 280.00

Analyst Recommendations and Revisions

1-5 Linear Scale Current 1 Month
2 Month
3 Month
(1) BUY 6 6 5 6
(2) OUTPERFORM 12 13 15 17
(3) HOLD 8 8 8 5
(4) UNDERPERFORM 1 0 0 0
(5) SELL 0 1 1 1
No Opinion 0 0 0 0
Mean Rating 2.15 2.18 2.21 2.07

Institutional Holders

% Shares Owned: 30.18%
# of Holders: 333
Total Shares Held: 2,245,946,530
3 Mo. Net Change: 14,896,443
# New Positions: 6
# Closed Positions: 5
# Increased Positions: 60
# Reduced Positions: 35
# Net Buyers: 25

China Life Insurance Company Limited is a life insurance company. The Company provides a range of insurance products, including individual and group life insurance, health insurance and accident insurance products. It operates through three segments: Life Insurance, Health Insurance, and Accident Insurance. Its Life Insurance segment provides participating and non-participating life insurance and annuities to individuals and groups. Its Health Insurance segment provides short-term and long-term health insurance to individuals and groups. Its Accident Insurance segment provides short-term and long-term accident insurance to individuals and groups.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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