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New China Life Insurance Company (601336) Fair Value & Analysis

Financial Services · CN · Market cap 196B CNY

NC New China Life Insurance Company 601336 · SHG
Price¥62.43
Fair Value¥125.60
Upside+101.2%
Quality59/100
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Weak Growth
Highly profitable · 49.1% net margin
Low debt · generates free cash flow
4.24% dividend yield
Ranks above peers (12/15)
Wide moat 78/100
Evidence: High Range ¥94.20 – ¥157.00 Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 20 days ago

Fair value updated Jul 18, 2026, revised from ¥127.04 to ¥125.60 (−1.1%) since Jul 7, 2026. Share price −1.4% over the past month.

A solid business, screening 101% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥94.20). The market is more pessimistic than our downside scenario.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

¥85.01 ¥22.81 Fair Value ¥125.60 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥22.81 – ¥85.01 · fair‑value band ¥94.20 – ¥157.00 · the ¥62.43 price screens below the ¥125.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

New China Life Insurance Company (601336) currently trades at ¥62.43, while our model-based Fair Value estimate is ¥125.60, implying the stock looks roughly 101.2% undervalued today. We read business quality at 59/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, New China Life Insurance Company generated revenue of 75.1B CNY at a net margin of 49.1%. Revenue grew 3.2% year over year. It earns a return on equity of 36.3%. Net debt stands at 138B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥94.20 (bear case) to ¥157.00 (bull case); at ¥62.43, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 1% fair-value upside, at 101%, 601336 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥409.84 ¥578.22 ¥812.07 80
Residual Income ¥80.13 ¥111.55 ¥852.80 76
ROIC Compounder ¥132.02 ¥154.71 ¥177.14 72
All 24 models by family
DCF Models
FCF DCF ¥400.25 ¥584.65 ¥853.99 38
Owner Earnings ¥145.93 ¥207.61 ¥297.69 31
5Y Revenue Exit ¥200.42 ¥250.74 ¥308.46 39
5Y EBITDA Exit ¥229.60 ¥303.58 ¥383.91 41
5Y P/E Exit ¥253.45 ¥346.75 ¥439.32 38
10Y Revenue Exit ¥268.71 ¥329.09 ¥398.11 36
10Y EBITDA Exit ¥289.29 ¥365.14 ¥453.99 37
10Y P/E Exit ¥304.29 ¥394.59 ¥495.03 35
Earnings-Based
Graham-Dodd ¥79.08 ¥206.73 ¥269.72 54
PEG = 1.0 ¥39.40 ¥56.29 ¥73.17 46
EPV ¥128.87 ¥147.34 ¥163.49 59
Dividend Discount
Gordon GGM ¥35.34 ¥71.29 ¥116.56 70
DDM Multi-Stage ¥35.34 ¥54.39 ¥74.84 61
Multiples
P/E Multiple ¥174.44 ¥232.59 ¥290.74 63
P/S Multiple ¥80.66 ¥107.54 ¥134.43 58
P/B Multiple ¥80.44 ¥107.25 ¥134.07 55
EV/EBIT ¥193.45 ¥251.90 ¥310.35 53
EV/EBITDA ¥150.37 ¥194.46 ¥238.56 54
EV/Revenue ¥93.38 ¥125.64 ¥157.91 43
Asset-Based
NCAV (Graham) ¥17.88 ¥23.95 ¥35.75 50
Growth DCF
Growth DCF ¥409.84 ¥578.22 ¥812.07 80
Economic Profit
Residual Income ¥80.13 ¥111.55 ¥852.80 76
ROIC Compounder ¥132.02 ¥154.71 ¥177.14 72
Growth Earnings
Growth-Adj P/E ¥136.82 ¥195.46 ¥254.10 68

Widest divergence: Growth DCF (¥578.22) versus Asset-Based (¥23.95). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 75.1B CNY
Revenue growth (YoY) +3.2%
Net margin 49.1%
Return on equity 36.3%
Free cash flow 109B CNY FY2025
P/E ratio 5.3
More key figures
Operating margin 50.1%
EPS (TTM) ¥11.82
Dividend yield 4.2%
EPS growth (YoY) +10.1%
Net debt 138B CNY FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 60 · Market factors (momentum, volatility) 40

Profitability 49
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 14
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

New China Life Insurance Company Ltd. provides life insurance products and services to individuals and institutions in China. The company operates through three segments: Traditional insurance, Participating insurance, and Other Business. It provides life insurance, health insurance, and accident insurance products and services.

Full company description

New China Life Insurance Company Ltd. provides life insurance products and services to individuals and institutions in China. The company operates through three segments: Traditional insurance, Participating insurance, and Other Business. It provides life insurance, health insurance, and accident insurance products and services. The company also offers asset management, investment management, training, electronic commerce, and medical services; elderly care services and enterprise management service; property management; and invests in, develops, leases, and manages real estate properties. The company was incorporated in 1996 and is headquartered in Beijing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

New China Life Insurance Company reported revenue of ¥134B in FY2025 versus ¥222B in FY2021, a compound −11.8%/yr. Reported net income was ¥36.3B in FY2025, compounding +24.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
134B CNY
Latest YoY
+4.2%
Avg. growth/yr (3Y)
+7.9%
Avg. growth/yr (5Y)
−8.2%
Avg. growth/yr (17Y)
+6.0%
Revenue −11.8%/yr
FY21 ¥222B
FY22 ¥107B
FY23 ¥70.1B
FY24 ¥129B
FY25 ¥134B
Net income +24.8%/yr
FY21 ¥14.9B
FY22 ¥21.5B
FY23 ¥8.7B
FY24 ¥26.2B
FY25 ¥36.3B

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Cite: Fair Value Calculator (2026). "New China Life Insurance Company Fair Value". https://www.fairvalue-calculator.com/stock/601336

Peer Group

Insurance - Life · 96 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Above median
Fair Value upside +101% · Top 25%
Return on equity (TTM) 36% · Top 25%
Return on assets 1% · Above median
Net margin (TTM) 49% · Top 25%
Operating margin (TTM) 50% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 4.2% · Above median
Debt / equity 0.18× · Lower than median

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 5.3× · Cheaper than 75% of peers
P/B 1.76× · Pricier than median
P/S (TTM) 2.61× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than median
EV/EBITDA 3.3× · Cheaper than median
PEG 0.56× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 28
FUTURE 16 · sector 44
PAST 100 · sector 42
HEALTH 91 · sector 85
DIVIDEND 85 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥38.72 ¥70.87 +83%
Ping An Insurance (Group) Company 601318 ¥49.60 ¥96.76 +95%
AIA Group 1299 HK$75.55 HK$7.88 -90%
Manulife Financial Corporation MFC C$58.52 C$45.13 -23%
Great-West Lifeco Inc GWO C$92.34 C$59.64 -35%
Life Insurance Corporation LICI ₹438.30 ₹590.43 +35%
Fubon Financial Holding 2881 124.50 TWD 115.05 TWD -8%
Cathay Financial Holding 2882 94.00 TWD 94.95 TWD +1%
Samsung Life Insurance Co 032830 337,500 KRW 166,710 KRW -51%
China Pacific Insurance (Group) Co 601601 ¥29.75 ¥59.50 +100%

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Frequently asked questions

Is New China Life Insurance Company (601336) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥125.60 versus a price of ¥62.43, about +101% (undervalued).
What is the fair value of 601336?
Our model-based fair value for New China Life Insurance Company is ¥125.60 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥62.43.
What is the quality score of 601336?
New China Life Insurance Company has a Quality Score of 59/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of New China Life Insurance Company (601336)?
New China Life Insurance Company reported trailing-twelve-month revenue of about 75.1B CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 601336?
The net profit margin of New China Life Insurance Company is about 49.1%, meaning it keeps roughly 49.1% of revenue as net income. Based on the latest reported figures.
Does New China Life Insurance Company pay a dividend?
New China Life Insurance Company currently shows a dividend yield of about 4.87% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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