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China Life Insurance Co
(2628)
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Rating:78Outperform
Price Target:
HK$34.00
â–˛(15.57% Upside)
Action:Reiterated
Date:08/30/26
The score is driven primarily by improving financial performance (stronger profitability and solid cash generation) and very attractive valuation (low P/E with a meaningful dividend yield). Technicals are supportive with price above key moving averages and positive MACD, though elevated stochastic suggests momentum may be getting stretched. The main risk factor is the recent increase in debt alongside historically volatile revenue.
Positive Factors
Material improvement in revenue and margins
The recent improvement in revenue and profitability indicates stronger operating performance and potentially better earnings power. Sustained margins would strengthen internal capital generation, although the company’s historical revenue volatility means durability still requires monitoring.
Negative Factors
Debt increase reduces balance-sheet headroom
The sharp TTM rise in debt reduces the capital cushion available to absorb adverse claims, investment losses or weaker operating results. Higher leverage may also constrain strategic flexibility and increase the importance of maintaining strong recurring cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Material improvement in revenue and margins
The recent improvement in revenue and profitability indicates stronger operating performance and potentially better earnings power. Sustained margins would strengthen internal capital generation, although the company’s historical revenue volatility means durability still requires monitoring.
Read all positive factors
China Life Insurance Co (2628) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.16T
Dividend Yield3.28%
Average Volume (3M)54.49M
Price to Earnings (P/E)4.3
Beta (1Y)1.42
Revenue Growth38.17%
EPS Growth134.02%
CountryHK
Employees96,257
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)9.38
Shares Outstanding7,441,175,000
10 Day Avg. Volume59,101,899
30 Day Avg. Volume54,489,108
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.17
Price to Sales (P/S)1.15
P/FCF Ratio1.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$36.91Price Target Upside25.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)5.67
Revenue Forecast (FY)HK$633.89B
China Life Insurance Co Business Overview & Revenue Model
Company Description
Operating across the People's Republic of China, China Life Insurance Company Limited, supported by its various subsidiaries, serves as a prominent provider of life insurance services. The company structures its extensive operations into four prin...
How the Company Makes Money
China Life primarily earns money through (1) underwriting insurance and related protection products and (2) investing the premiums (insurance funds) it collects.
1) Insurance underwriting (premium-based income): The company sells life, annuity, ...
China Life Insurance Co Earnings Call Summary
Earnings Call Date:Oct 30, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record-high premiums and net profit, coupled with significant growth in investment income and improved operational efficiency. However, concerns about volatility under new accounting standards and challenges in transitioning the product mix were also highlighted.Positive Updates
Record-High Gross Written Premiums
The company's gross written premiums reached RMB 600 billion, a record high, with a year-on-year increase of 5.1%.
Negative Updates
High Volatility Concerns
Concerns were raised about increased volatility in profitability and net assets under new accounting standards.
Read all updates
Q3-2024 Updates
Positive
Negative
Record-High Gross Written Premiums
The company's gross written premiums reached RMB 600 billion, a record high, with a year-on-year increase of 5.1%.
Read all positive updates
Company Guidance
During the earnings call for Q3 2024, the executives provided comprehensive guidance on the company's financial performance and strategic focus areas. The company reported gross written premiums of RMB 600 billion, marking a year-on-year increase of 5.1%, with renewal premiums increasing by 7.5% to RMB 410.7 billion and first-year regular premiums rising by 6.8% to RMB 113.2 billion. The surrender rate decreased to 0.74%, enhancing operational quality. Investment income also saw a significant rise, with gross investment income reaching RMB 261.4 billion, up by 152%, and the net investment income at RMB 144.7 billion, an increase of 3.9%. The company's total assets amounted to RMB 6.48 trillion, reflecting an 11.7% growth. Additionally, the core solvency ratio stood at 154.58%, while the comprehensive solvency ratio was at 211.64%, both indicating robust financial health. The management emphasized their commitment to a customer-centric approach, focusing on diversified products and optimizing asset-liability management to ensure sustainable, high-quality growth.China Life Insurance Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 630.49B | 605.11B | 512.20B | 396.47B | 822.30B | 848.11B |
| Gross Profit | 560.11B | 603.33B | 510.40B | 394.74B | 66.12B | 85.99B |
| EBITDA | 159.12B | 186.52B | 120.24B | 57.00B | 33.84B | 60.88B |
| Net Income | 265.28B | 154.08B | 106.94B | 51.18B | 32.08B | 50.77B |
Balance Sheet | ||||||
| Total Assets | 8.09T | 7.59T | 6.77T | 5.89T | 5.25T | 4.89T |
| Cash, Cash Equivalents and Short-Term Investments | 154.50B | 143.32B | 86.52B | 2.41T | 1.87T | 1.49T |
| Total Debt | 223.84B | 36.79B | 49.27B | 48.97B | 49.34B | 55.86B |
| Total Liabilities | 7.41T | 6.98T | 6.25T | 5.42T | 4.81T | 4.40T |
| Stockholders Equity | 664.08B | 595.21B | 509.68B | 460.11B | 436.17B | 478.58B |
Cash Flow | ||||||
| Free Cash Flow | 332.90B | 456.87B | 374.82B | 384.06B | 348.89B | 280.97B |
| Operating Cash Flow | 702.60B | 459.93B | 378.80B | 388.23B | 351.97B | 286.45B |
| Investing Cash Flow | -594.42B | -547.37B | -354.62B | -428.10B | -164.96B | -393.73B |
| Financing Cash Flow | -85.69B | 144.34B | -86.76B | 60.27B | -120.09B | 111.14B |
China Life Insurance Co Technical Analysis
Positive
29.42
Price Trends
28.45
Positive
28.23
Positive
28.50
Positive
Market Momentum
0.60
Negative
54.23
Neutral
61.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2628, the sentiment is Positive. The current price of 29.42 is above the 20-day moving average (MA) of 28.71, above the 50-day MA of 28.45, and above the 200-day MA of 28.50, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 54.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2628.
China Life Insurance Co Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$198.61B | 4.24 | 38.57% | 6.50% | 44.36% | 53.14% | |
78 Outperform | HK$1.16T | 4.34 | 39.88% | 3.28% | 38.17% | 134.02% | |
77 Outperform | HK$349.70B | 5.73 | 18.41% | 6.13% | 11.90% | 22.71% | |
77 Outperform | HK$78.57B | 2.39 | 33.37% | 5.76% | 18.51% | 293.61% | |
73 Outperform | HK$1.12T | 6.32 | 15.80% | 5.71% | 10.72% | 38.29% | |
70 Outperform | HK$797.73B | 12.91 | 19.05% | 2.57% | 13.31% | 36.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
HK:2628
China Life Insurance Co
29.62
7.36
33.09%
HK:2318
Ping An Insurance Company of China
55.25
1.69
3.16%
HK:1299
AIA Group
76.90
2.62
3.53%
HK:2601
China Pacific Insurance (Group) Co
29.50
-0.88
-2.89%
HK:0966
China Taiping Insurance Holdings Co
21.36
6.08
39.76%
HK:1336
New China Life Insurance Co., Ltd. Class H
47.76
3.22
7.23%
China Life Insurance Co Corporate Events
China Life Publishes Q2 2026 Solvency Report Summary Under Updated Rules
Aug 27, 2026
China Life Insurance Company Limited has released its solvency quarterly report summary for the second quarter of 2026, prepared under the Solvency Regulatory Rules II and recent optimization notices issued by Chinese financial regulators. The dis...
China Life Declares Interim 2026 Dividend and Sets H-Share Tax Terms
Aug 27, 2026
China Life Insurance Company Limited has declared an interim ordinary cash dividend of RMB 0.358 per share for the six months ended 30 June 2026, subject to shareholder approval on 24 September 2026. The dividend, for the financial year ending 31 ...
China Life books surging profit and record new business in strong H1 2026
Aug 27, 2026
China Life reported a strong start to China’s 15th Five-Year Plan with significant growth in assets, profitability and new business in the first half of 2026. Total assets rose to RMB8.09 trillion and net assets to RMB677.9 billion, while em...
China Life Insurance Clears All Resolutions at 2026 Extraordinary Meeting
Aug 20, 2026
China Life Insurance Company Limited reported that all resolutions proposed at its first extraordinary general meeting of 2026 were approved, following a poll conducted both onsite and online in Beijing. The meeting was chaired by board chairman C...
China Life Insurance to Webcast 2026 Interim Results Briefing for Investors
Aug 19, 2026
China Life Insurance Company Limited plans to publish its 2026 interim results on the HKExnews website of Hong Kong Exchanges and Clearing Limited on 27 August 2026. The disclosure forms part of the insurer’s ongoing efforts to keep investor...
China Life Schedules Board Meeting to Approve 2026 Interim Results
Aug 17, 2026
China Life Insurance Company Limited has scheduled a board meeting for 27 August 2026 to review and approve its interim results for the six months ended 30 June 2026. The meeting will also address other board business, signaling the company’...
China Life convenes EGM to approve new five‑year plan and renew P&C distribution pact
Jul 29, 2026
China Life Insurance Company Limited has called its First Extraordinary General Meeting of 2026 for 20 August in Beijing, setting out key governance items for shareholder approval. The agenda includes voting on the outline of the company’s &...
China Life revamps profit distribution in connected investment partnership
Jul 24, 2026
China Life Insurance Company Limited has announced a change to the profit distribution mechanism of a connected investment partnership formed with China Life Jiangsu, Jiangsu Fund and China Life Property and Casualty Insurance. The partners plan t...
China Life renews connected insurance sales pact with CLP&C
Jul 24, 2026
China Life Insurance Company Limited plans to renew and extend its insurance sales cooperation with affiliate China Life Property Casualty through a new Insurance Sales Framework Agreement. Under the arrangement, China Life will continue to act a...
China Life forecasts profit surge of over 200% for first half of 2026
Jul 14, 2026
China Life Insurance Company Limited expects a sharp increase in profitability for the first half of 2026, projecting net profit attributable to equity holders of between RMB128.93 billion and RMB137.12 billion. This represents a year-on-year rise...
China Life commits RMB5 billion to semiconductor-focused investment partnership
Jul 10, 2026
China Life Insurance Company Limited plans to form a new investment partnership with China Life Investment Management (CLIIM), committing RMB4.999 billion out of a total RMB5 billion in capital, with CLIIM contributing RMB1 million and China Life ...
China Life Shareholders Approve All Resolutions and Final Dividend at 2026 AGM
Jun 25, 2026
China Life Insurance Company Limited held its annual general meeting on 25 June 2026 in Beijing, with shareholders and proxies representing about 78.4% of the company’s 28.26 billion issued shares in attendance through onsite and online voti...
China Life Insurance updates 2025 final dividend and tax treatment for H shareholders
Jun 25, 2026
China Life Insurance Company Limited has updated its final cash dividend details for the year ended 31 December 2025, setting the payout at RMB 0.618 per share, equivalent to HKD 0.7106 based on an exchange rate of RMB 1 to HKD 1.14984. The divide...
China Life Sets June 2026 AGM and Proposes RMB17.47 Billion Final Dividend
Jun 1, 2026
China Life Insurance Company Limited has called its annual general meeting for 25 June 2026 in Beijing, where shareholders will review the 2025 board and financial reports, decide on the profit distribution plan, approve director and supervisor re...
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.