China Life Insurance Co Ltd Class A
601628: XSHG (CHN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥57.00 | Xxtx | Lrtvbtyy |
China Life: Briefing Affirms Focus on Shareholder Returns; Positive but No Change to Valuation
We retain our China Life earnings forecast and fair value estimates at HKD 20 for the H-shares, and CNY 19 for the A-shares, following the insurer’s briefing on the impact of the new accounting standards. We think the key messages confirm our expectations. China Life’s H-shares are trading at an attractive 0.3 times 2023 price/embedded value ratio versus 0.8 times for A-shares. We would buy the H-shares over the A-shares.