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New China Life Insurance Co., Ltd. Class H
(1336)
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Rating:79Outperform
Price Target:
HK$56.00
▲(13.73% Upside)
Action:Upgraded
Date:08/27/26
The score is driven primarily by strong recent financial performance and cash flow quality, plus very attractive valuation (low P/E and high dividend yield). Technicals add moderate support with positive momentum, but the overall rating is tempered by meaningful balance-sheet leverage and historical revenue volatility.
Positive Factors
Revenue and Profit Reacceleration
The sharp rebound in revenue, combined with a solid margin, indicates renewed operating scale and earnings capacity. If sustained, this improves the insurer’s ability to build capital, support policyholder obligations, and fund future growth.
Negative Factors
Meaningful Balance-Sheet Leverage
Debt remains slightly above equity despite improving from 2025. This elevated leverage can constrain financial flexibility and amplify earnings or capital pressure if investment returns weaken or policyholder obligations rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profit Reacceleration
The sharp rebound in revenue, combined with a solid margin, indicates renewed operating scale and earnings capacity. If sustained, this improves the insurer’s ability to build capital, support policyholder obligations, and fund future growth.
Read all positive factors
New China Life Insurance Co., Ltd. Class H (1336) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$195.84B
Dividend Yield6.42%
Average Volume (3M)7.86M
Price to Earnings (P/E)4.2
Beta (1Y)1.49
Revenue Growth44.36%
EPS Growth53.14%
CountryHK
Employees27,726
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)21.85
Shares Outstanding1,034,107,300
10 Day Avg. Volume11,157,256
30 Day Avg. Volume7,861,569
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.36
Price to Sales (P/S)1.16
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$47.04Price Target Upside-4.46% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)11.25
Revenue Forecast (FY)HK$157.72B
New China Life Insurance Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Headquartered in Beijing, China, New China Life Insurance Company Ltd. was established in 1996 to offer life insurance products and services to individuals and institutions throughout the People's Republic of China. Its operations are structured a...
How the Company Makes Money
New China Life Insurance Co., Ltd. makes money primarily through (1) underwriting income from selling and servicing insurance policies and (2) investment income earned on the assets it manages to meet future policyholder obligations.
1) Underwrit...
New China Life Insurance Co., Ltd. Class H Earnings Call Summary
Earnings Call Date:Mar 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive picture: the company reported record highs across assets, premiums, profit, EV and NBV with strong investment returns, marked improvement in persistency and a successful push into participating products and bancassurance. Management acknowledged challenges—solvency pressure from low long-term yields, potential margin effects from the shift to participating business, market/interest-rate uncertainty, and tighter regulatory requirements—but also described concrete mitigation steps (asset-liability matching, diversified investments, capital measures, technology and service investments). Given the scale and materiality of the reported achievements and clear management plans to address risks, the overall tone is constructive and growth-oriented.Positive Updates
Record Asset and Market Value Growth
Total assets reached close to RMB 1.9 trillion, up 12.2% year-on-year; total market value surpassed RMB 200 billion; share price delivered strong gains (management cited double-digit increases) reflecting improved investor confidence.
Negative Updates
Solvency Pressure from Low-Rate Environment
Although comprehensive solvency margin ratio remained above 200%, management highlighted periodic pressure from sustained downward shifts in long-dated government bond yields (750-day moving average), requiring active capital measures (internal generation, external replenishment, asset allocation optimization).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Asset and Market Value Growth
Total assets reached close to RMB 1.9 trillion, up 12.2% year-on-year; total market value surpassed RMB 200 billion; share price delivered strong gains (management cited double-digit increases) reflecting improved investor confidence.
Read all positive updates
Company Guidance
Management guidance for 2026 stresses steady, high‑quality growth that balances value and volume by doubling down on a customer‑centered strategy, accelerating the shift to participating whole‑life, annuity and health products, and pushing channel transformation across individual, bancassurance and Internet channels; key 2025 baselines they plan to build on include total assets ≈RMB1.9tn (+12.2%), GWP RMB195.9bn (+14.9%), EV RMB287.8bn (+11.4%), net profit RMB36.3bn (+38.3%), NBV RMB9.8bn (+57.4%) with NBV margin 16.2%, total investment income RMB104.3bn (6.6% yield), and comprehensive solvency margin >200%. Specific operational priorities are to grow participating sales (par FYP RMB11.9bn in 2025; Q4 par mix 77%), expand bancassurance (2025 bank FYP RMB72.1bn, long‑term FYP RMB37.9bn +52%, NBV RMB5.27bn +111%), sustain persistency (13‑month 97.1%, 25‑month 93.3%) and low surrenders (1.5%), optimize asset‑liability matching (including three pilot funds totalling RMB46.25bn and greater allocation to long‑term equity/PE/OCI), maintain capital adequacy via internal and external measures, and scale tech/AI (11 large models and digital ambassadors, target digital productivity ≈3,000 FTE via seven virtual employee roles) while preserving strong service metrics (one‑minute policy service 96%, paid >RMB42bn in maturities/annuities and RMB14.7bn in claims).New China Life Insurance Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.88B | 130.80B | 128.86B | 70.10B | 106.89B | 222.00B |
| Gross Profit | 192.53B | 130.80B | 128.86B | 70.10B | 96.72B | 207.41B |
| EBITDA | 59.87B | 44.65B | 29.88B | 67.84B | 99.86B | 17.29B |
| Net Income | 68.16B | 35.34B | 26.23B | 8.71B | 21.50B | 14.95B |
Balance Sheet | ||||||
| Total Assets | 1.96T | 1.90T | 1.69T | 1.40T | 1.26T | 1.13T |
| Cash, Cash Equivalents and Short-Term Investments | 34.83B | 44.69B | 38.46B | 21.81B | 393.24B | 418.90B |
| Total Debt | 164.79B | 214.41B | 31.10B | 21.02B | 10.86B | 11.04B |
| Total Liabilities | 1.83T | 1.79T | 1.60T | 1.30T | 1.15T | 1.02T |
| Stockholders Equity | 123.56B | 111.59B | 96.24B | 105.07B | 102.88B | 108.50B |
Cash Flow | ||||||
| Free Cash Flow | 225.90B | 152.64B | 95.19B | 89.46B | 87.60B | 70.59B |
| Operating Cash Flow | 227.92B | 154.09B | 96.29B | 91.55B | 89.39B | 73.85B |
| Investing Cash Flow | -140.57B | -135.31B | -141.77B | -156.65B | -90.47B | -106.53B |
| Financing Cash Flow | -97.24B | -14.35B | 62.03B | 69.29B | 2.84B | 35.24B |
New China Life Insurance Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$195.84B | 4.21 | 38.57% | 6.42% | 44.36% | 53.14% | |
78 Outperform | HK$1.15T | 4.37 | 39.88% | 3.81% | 38.17% | 134.02% | |
77 Outperform | HK$348.82B | 5.74 | 18.41% | 6.11% | 11.90% | 22.71% | |
77 Outperform | HK$77.27B | 2.41 | 33.37% | 5.71% | 18.51% | 293.61% | |
73 Outperform | HK$1.11T | 6.29 | 15.80% | 5.69% | 10.72% | 38.29% | |
70 Outperform | HK$796.17B | 12.64 | 19.05% | 2.63% | 13.31% | 36.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HK:1336
New China Life Insurance Co., Ltd. Class H
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New China Life Insurance Co., Ltd. Class H Corporate Events
New China Life Insurance Reshapes Board Committees Ahead of Regulatory Approval
Aug 26, 2026
New China Life Insurance Company Ltd. has adjusted the composition of its board committees, electing director HUANG Geng to both the Strategy and ESG Committee and the Investment and Asset Liability Management Committee. The reshuffle clarifies th...
New China Life Insurance Sets Out Board Line-Up and Committee Roles
Aug 26, 2026
New China Life Insurance Company Ltd. has detailed the current composition of its board of directors, naming its chairman, executive directors, non-executive directors and independent non-executive directors, and clarifying that certain appointmen...
New China Life Insurance Declares Interim Dividend for First Half of 2026
Aug 26, 2026
New China Life Insurance Company Ltd. has declared an interim ordinary cash dividend of RMB 0.73 per share for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The dividend, payable in Hong Kong dollars for H-shar...
New China Life Insurance Releases Unaudited 2026 Interim Results
Aug 26, 2026
New China Life Insurance Company Ltd. has released its unaudited interim results for the six months ended 30 June 2026, covering the performance of the company and its subsidiaries. The announcement is made in compliance with Hong Kong listing rul...
New China Life Insurance Schedules Board Meeting to Review Interim Results
Aug 14, 2026
New China Life Insurance Company Ltd. has scheduled a board meeting for 26 August 2026 in Beijing to review and approve interim results for the six months ended 30 June 2026. The board will also consider the publication of these results and the po...
New China Life names veteran strategist Liu Zhanpeng as employee director
Aug 12, 2026
New China Life Insurance Company Ltd., a major Chinese life insurer listed in Hong Kong, provides life insurance and related financial services across the mainland market. The company’s governance structure combines Party building functions,...
New China Life completes RMB10 billion undated capital bond issuance to bolster solvency
Jul 23, 2026
New China Life Insurance Company Ltd. has completed the issuance of undated capital bonds in China’s interbank bond market, raising an aggregate principal amount of RMB10 billion. The bonds carry a coupon rate of 1.90% per annum for the firs...
New China Life Insurance Forecasts 40%–60% Surge in First-Half 2026 Profit
Jul 13, 2026
New China Life Insurance Company Ltd. expects a sharp increase in interim profits for the first half of 2026, with net profit attributable to shareholders projected at approximately RMB20.7 billion to RMB23.7 billion, up 40% to 60% year on year. E...
New China Life Insurance Strengthens Governance With Nomination and Remuneration Committee Rules
Jun 30, 2026
New China Life Insurance Company Ltd. is a major life insurer in the People’s Republic of China, operating as a joint stock company with limited liability. The company focuses on life insurance and related financial services, and its shares ...
New China Life Insurance Tightens Governance Over Audit and Related Party Oversight
Jun 30, 2026
New China Life Insurance Co., Ltd. has formalized comprehensive terms of reference for its Audit and Related Party Transaction Control Committee under the board of directors. The committee is designed as a non‑executive body that assists the...
New China Life Insurance Tightens Governance With New Nomination and Remuneration Committee Mandate
Jun 30, 2026
New China Life Insurance has formalised detailed terms of reference for its Nomination and Remuneration Committee under the board of directors, setting out its composition, qualifications and leadership structure. The committee must comprise at le...
New China Life Wins Strong Shareholder Backing at 2025 AGM
Jun 26, 2026
New China Life Insurance Company Ltd. held its 2025 annual general meeting in Beijing on 26 June 2026, conducted as a physical meeting with onsite and, for A share holders, online voting, and with full attendance by the board and senior management...
New China Life Insurance Sets 2025 Final Dividend and Tax Terms for H-Shareholders
Jun 26, 2026
New China Life Insurance Company Ltd. has declared a final ordinary dividend of RMB 2.06 per share for the financial year ended 31 December 2025, with shareholder approval obtained on 26 June 2026. For holders of H shares in Hong Kong, the default...
New China Life Insurance Wins Approval for Up to RMB10 Billion Undated Capital Bonds
Jun 18, 2026
New China Life Insurance has secured regulatory approval from the National Financial Regulatory Administration and the People’s Bank of China to issue up to RMB10 billion in undated capital bonds in China’s interbank bond market. The m...
New China Life Insurance Adds Board Election Resolution to 2025 AGM Agenda
Jun 10, 2026
New China Life Insurance has issued a supplemental notice for its 2025 annual general meeting, confirming the meeting will proceed on 26 June 2026 in Beijing as originally scheduled. In addition to previously announced items, shareholders will vot...
New China Life Insurance Taps Veteran Regulator as Board Nominee
Jun 10, 2026
New China Life Insurance Company Ltd. has announced that Central Huijin Investment Ltd., which holds 31.34% of its shares, has nominated HUANG Geng as a candidate for non-executive director for the ninth session of its board. The board has approve...
New China Life Sets 2025 AGM and Dividend Timetable for H Shareholders
May 27, 2026
New China Life Insurance Company Ltd. has called its 2025 annual general meeting for 26 June 2026 in Beijing, where shareholders will vote on the 2025 board and director performance reports, the annual reports for A and H shares, a 2025 profit dis...
New China Life Insurance Sets Final 2025 Dividend at RMB 2.06 per Share
May 27, 2026
New China Life Insurance Company Ltd. has announced a final ordinary dividend of RMB 2.06 per share for the financial year ended 31 December 2025. The dividend reflects the insurer’s continued profitability and capital distribution to shareh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.