Shanghai stock alert

CHINA

CLOSING UPDATE: China Life Insurance - A Share increases 1.7% - outperforming 93% of stocks 18 October 2017 15:54 CST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Shanghai market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

China Life Insurance - A Share, Shanghai's largest insurance company by market capitalisation, has increased 47.0 fen (or 1.7%) today to trade at CNY28.69 and has outperformed 93% of the market in the past week. A price rise combined with a high relative strength is a bullish signal. Compared with the SSE 180 Index which rose 68.9 points (or 0.8%) in the day, this represented a relative price increase of 0.8%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.01 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 5.1% discount to 12-month high of CNY30.24 against the 36.2% premium to 12-month low of CNY21.06 suggests the stock continues to push for new highs.

Other Bullish Signals include:

+ Interest cover is less leveraged at 6 times.

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued and ranks in the top 7% of stock by value of Q Ratio.

+ Net profit margin has averaged 6.8% in the last 3 years. This is better than the sector average of 6.4% and suggests a high margin of safety.

+ The Brand Value represents 7.0% of the estimated Enterprise Value of CNY869.1 billion (US$131.2 billion).

Note

Bearish Signals:

As per the Du Pont analysis, Return on Equity is less than stellar at 6.6%. Also, this has deteriorated from 11.1% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 43.5 [19.6]

Price to Book of 2.7 [2.4]

Dividend yield of 0.8% [1.3%]

Return on Equity 6.6% [10.6%]

Return on Assets 0.7% [1.0%]

TODAY'S ALERTS

Afternoon Alert: China Life Insurance - A Share increases 1.1%, leads market higher

18 October 2017 12:59 CST

China Life Insurance Company Limited - A Share (SS:601628) has increased 1.1% to trade at CNY28.52 vs. the SSE 180 Index which strengthened 42.3 points (or 0.5%) to 8,459.5. Representing a weighting of about 3.7% of the index, the stock accounted for 7.9% of today's gain. The shares have outperformed 91% of the market in the past week. Trading volume was 1.4 times average so far today.

Morning Alert: China Life Insurance - A Share increases 0.9%, leads market higher

18 October 2017 10:42 CST

China Life Insurance Company Limited - A Share (SS:601628) has increased 0.9% to trade at CNY28.48 vs. the SSE 180 Index which strengthened 24.2 points (or 0.3%) to 8,441.4. Representing a weighting of about 3.7% of the index, the stock accounted for 11.9% of today's gain. The shares have outperformed 92% of the market in the past week. Trading volume was 1.8 times average so far today.

China Life Insurance Company Limited - A Share (SS:601628; SHA:601628; CH:601628)

ISIN: CNE000001Q93

PermID: 4295864767

Source: www.BuySellSignals.com