China Life 2628; ADR (LFC)

Re: China Life 2628; ADR (LFC)

Postby winston » Wed Oct 19, 2016 7:48 am

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CHINA LIFE Expects 3Q Net Profit to Tumble Approx. 60%


CHINA LIFE (02628.HK) 0.000 (0.000%) Short selling $94.22M; Ratio 14.229% announced that it is estimated that the net profit attributable to equity holders of the company for the third quarter of 2016 may decrease by approximately 60% as compared to the same period of 2015.

The estimated decrease in the results for the third quarter of 2016 is mainly attributable to the decrease in investment income and the impact of the update of discount rate assumption of reserves of traditional insurance contracts.

Source: AAStocks Financial News
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Re: China Life 2628; ADR (LFC)

Postby winston » Wed Oct 19, 2016 2:14 pm

<Research Report>M Stanley: CHINA LIFE Last Quarter Profit Still under Pressure; Rated Equalweight

Morgan Stanley, in its report, said CHINA LIFE (02628.HK) issued a profit warning with earnings for the first nine months estimated to decline by around 60% yearly.

This implied 3Q earnings of only around RMB3.1 billion.

Despite 34% being higher than a year ago, it was still one of the weaker quarters, and was around 50% below historical average.

The company cited reduced investment income and reserve top-ups as key drags on earnings,and we expect the pressure from low yields to continue into 4Q as well as next year.

The broker rated CHINA LIFE at Equalweight with target price of $20.

Street consensus is currently expecting earnings of RMB22 billion for 2016, implying around RMB8 billion for 4Q.

Morgan Stanley said this could be hard for China Life to achieve.

Source: AAStocks Financial News
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Re: China Life 2628; ADR (LFC)

Postby winston » Sat Nov 12, 2016 9:30 pm

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Blue-Chip Stocks to Sell: China Life (LFC)

China Life Insurance Company Ltd. (ADR) (NYSE:LFC) would seem to be an important player in a growing industry in a country where growth is still chugging along at 7% and millions of new people enter the middle class every year.

But that robust growth is not fast enough to keep many Chinese firms growing in unison. Plus, there’s a large overhang of uncertainty regarding the direction of the economy. If China continues to flag, it would be very dangerous to the global markets.

Also, the government has unpegged the yuan to the U.S. dollar and then has begun to weaken the yuan. This is very bad for LFC since it holds massive amounts of money in bonds and other Chinese investments. Weak exports don’t help either.

In the past year, LFC has been looking for creative — and more aggressive — ways to grow the business. This has analysts unsettled.

And shares of this blue-chip stock has lost 32% of its value since this time last year. This trend is by no means over and things could get worse before they get better.


Source: Investor Place
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Re: China Life 2628; ADR (LFC)

Postby winston » Thu Dec 01, 2016 1:02 pm

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<Research Report>UBS Lifts CHINA LIFE (02628.HK) Target to $26.28; Rated Buy

UBS, in its report, maintained its Buy rating on CHINA LIFE (02628.HK) as China bond yields have been showing signs of stabilisation recently; improving price discipline in the group; and robust agency growth should support new business into 2017.

Despite the recent share-price rebound, UBS analysis suggested implied expectations from the current valuation on both interest rate outlook and new business growth still seem low.

UBS raised its target price from $21.5 to $26.28, implying 1.33x 2017E P/EV (estimate).

Hiring momentum at China Life's agency force remained at 32% half-on-half in 1H16. According to the China Insurance Regulatory Commission (CIRC), sector agency grew another 11% in 3Q16.

UBS believed China Life's expanded agency force should help a further business mix shift from volume-based to protection-based. Channel checks also suggested China Life has cut universal life products crediting rates by 110bps year-to-date to 4.0% as of October, reflecting better price discipline and effective mitigation of reinvestment pressure to policyholders.

China Life's solvency was 317% at 3Q16, the highest among UBS's coverage, offering plenty of potential for growth.

Source: AAStocks Financial News
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Re: China Life 2628; ADR (LFC)

Postby winston » Thu Jan 19, 2017 11:26 am

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Ideas Engine: Coming back to life!

We view China Life as the prime beneficiary of rising yield (CS recently raised 10Y gov't bond yield forecast to 3.75% from 3.25%)
with benefits from both an increase in new money yield (4.5% by end-2017 from current 3.8% on CS's simulation) and upgrade of
valuation multiples. The expected A-share market rebound (CS report) would be a catalyst for China Life's stock performance.

We believe China Life, a victim of "platform" insurers in the past, will benefit most from CIRC's regulatory measures to curb irrational competition. Since 2H16, it has successfully increased market share and delivered strong growth amid a benign environment.

We believe it will see strong, sustainable VNB growth (+20%) and margin expansion led by product improvement:
(1) reducing guaranteed rate (to 3.5% from 4.025%),
(2) shifting to long-term protection business,
(3) reducing liability costs (i.e., crediting rate).

We upgrade China Life to Outperform and lift TP to HK$27 from HK$22, on
(1) favourable macro trends,
(2) policy tailwinds,
(3) strong VNB growth with margin expansion; cut EPS estimates on additional reserving charges on 750-day bond yield curve.

Source: CS

https://plus.credit-suisse.com/research ... 2AD-WEqSdS
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Re: China Life 2628; ADR (LFC)

Postby winston » Thu Jan 19, 2017 1:14 pm

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<Research Report>C Suisse Upgrades CHINA LIFE to Outperform with Target Lifted to $27

Credit Suisse, in its report, said that China government bond (CGB) yield rate has been rebounding starting from the fourth quarter of 2016 and hence the research house revises up the 10-year CGB yield forecast to 3.75% from 3.25%.

CHINA LIFE(02628.HK) is believed to be the biggest beneficiary for rising yield since the insurer is more sensitive than its counterparts.

Meanwhile, possible A-share market recovery also becomes a catalyst for the group.

The broker raised CHINA LIFE's rating to Outperform from Neutral and lifted the target price to $27 from $22.

Being the biggest victim of "platform" insurers in the past, CHINA LIFE will benefit most from a benign market environment.

Following the launch of a wide rage of regulatory measures for halting irrational competition, the "platform" insurers will lose their strong momentum for growth.

It is expected that the group will continue to provide premium products this year which supports stable and sustainable growth.

The low penetration and potential deferred tax pension reform also provides upside for the life insurance business of the group.

Source: AAStocks Financial News
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Re: China Life 2628; ADR (LFC)

Postby winston » Mon Feb 06, 2017 11:36 am

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Why Is China Life Insurance Soaring?

By Shuli Ren

The Hang Seng Composite Index rose 0.6% on Monday, boosted by Chinese insurance companies.

China Life Insurance (2628.Hong Kong) soared 4.7%, the most traded stock on the benchmark index. Ping An Insurance (2318.Hong Kong) came second, up 2.6%. New China Life (1336.Hong Kong) advanced 4.3%, China Taiping Insurance (966.Hong Kong) gained 3.6%.

So why are the Chinese insurance companies soaring and why China Life in particular?

It was because bond yields in China are seen to be rising, traders say. Last Friday, on the first working day after the long Chinese New Year holiday, the People’s Bank of China raised its 7-, 14- and 28-day repo rates by 10 basis points, to 2.35%, 2.50% and 2.65% respectively, the first reverse repo rate hike since October 2013!

Higher interest rates are seen to be beneficial to insurance companies, and life insurers in particular, because their liabilities have much longer duration.

While some brokerages tried to assure us the PBoC was not tightening its monetary stance, Goldman Sachs is not shy from expressing its view:

On Friday, PBOC increased interest rates on OMOs (open market operations) by 10bp and on SLF (standing lending facility) by 10-35bp—shortly following the rise in interest rates on MLF (medium-term lending facility) less than two weeks ago.

As we noted recently, we believe that the PBOC will retain its tightening bias in the near term as the underlying financial-leverage and macroeconomic arguments for tightened monetary policy have largely remained.

We continue to expect that the PBOC’s tightening bias will remain unless either
i) there is a clearer deleveraging in the interbank funding market, and/or
ii) economic activity slows materially.

Year-to-date, the iShares MSCI China ETF (MCHI) already rose 7.7%.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... e-soaring/
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Re: China Life 2628; ADR (LFC)

Postby winston » Tue Feb 07, 2017 1:06 pm

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<Research Report>Daiwa Expects CHINA LIFE to Benefit from Life Insurance Turnaround; TP Lifted to $26

Daiwa, in its report, believed CHINA LIFE (02628.HK) should benefit from a positive turnaround in the life insurance industry in China, despite some company-level concerns.

The broker still reiterated the rating Outperform with target price lifted from $24 to $26.

The broker said China has already embarked on a liquidity tightening cycle due to the rising trend in global interest rates, a domestic asset bubble, inflationary pressure, and so on.

A rise in interest rates significantly eases the negative spread risk for listed life insurers.

Daiwa said it has revised the net profit forecast on CHINA LIFE slightly by -2% to 1% for 2016-18, mainly due to mark-to-market A-share movement.

Source: AAStocks Financial News
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Re: China Life 2628; ADR (LFC)

Postby winston » Wed Mar 22, 2017 11:52 am

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March 14, 2017

CHINA LIFE Jan-Feb Premium Income Up 19.65% YoY

CHINA LIFE (02628.HK) announced that premium income for the first two months of 2017 amounted to approximately RMB189.9 billion, showing a growth of 19.65% as compared with the year-ago period.

Source: AAStocks Financial News
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Re: China Life 2628; ADR (LFC)

Postby winston » Wed Mar 22, 2017 11:54 am

Feb 8, 2017

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<Research Report>G Sachs Predicts CN Life Insurers to Have Valuation Recovery; China Life Expected 31% Upside Potential

Goldman Sachs, in its report, believed that the China life insurance sector is well positioned for valuation recovery, with robust value of new business value (VONB) growth and improving quality, ample capital and still reasonable valuations.

Positive catalysts could be macro (higher interest rates, more positive sentiment on China/A-share market), or micro (quality of products sold, additional disclosure).

Goldman Sachs said CHINA LIFE (02628.HK) looks best positioned to benefit, being the largest pure life insurer and at a reasonable valuation.

The broker reiterated Buy (on Conviction List) with target price of $30.2, implying 31% potential upside.

The broker also expected China Life to report robust VONB growth, which could give investors more confidence in EV reporting.

Source: AAStocks Financial News
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