To The Moon

$China Pacific Insurance (Group) Co., Ltd.(601601)$ $China Pacific Insurance Group Co Ltd(CHPXF)$ 

Focus on higher quality growth

China Pacific (CPIC) is the third largest player in both life and property & casualty (P&C) segments in China. CPIC generated about two thirds of net earned premiums from life insurance and about a third from P&C. Looking ahead, we expect its life new business value (NBV) growth will need time to see a gradual recovery given the challenging environment from the pandemic remains, which has impacted the industry’s new policy sales momentum and agency force. Valuations however have reflected much of the concerns over a more modest growth outlook and negative impact from Covid-19 outbreak this year. Capital position remained healthy with group comprehensive solvency ratio of ~266% as of end FY21.

I think it may be a good time to enter this stock as the Chinese economy is slated to recover this year given That the COVID zero policies have been abandoned. There are still some potential upsides to this stock. However, do note that it may be dampened if the real estate downturn is steeper than expected or if the world econony slumps into a deeper recession.

DYODD 

@TigerStars