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China Life Insurance Co Ltd A (601628) Fair Value & Analysis

Financial Services · CN · Market cap 1.1T CNY (≈ $158B) · ISIN CNE000001Q93

What is China Life Insurance Co Ltd A really worth?

CL China Life Insurance Co Ltd A 601628 · SHG
Price¥39.17
Fair Value¥49.98
Upside+27.6%
Quality69/100

A solid business, trading 22% below our fair value of ¥49.98.

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Strengths

Highly profitable · 42.3% net margin
Low debt · generates free cash flow
Ranks above peers (11/15)
Wide moat 78/100

Risks

!Weak Growth (revenue 5y −4.8 %/yr)

For context

·2.19% dividend yield
Evidence: High Range ¥37.48 – ¥62.47

Fair value as of: Aug 24, 2026

From 6 valuation models · updated 12 days ago

Share price +2.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid quality (69/100) 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.

Price vs Fair Value (5 years)

¥51.03 ¥23.25 Fair Value ¥49.98 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range ¥23.25 – ¥51.03 · fair‑value band ¥37.48 – ¥62.47 · the ¥39.17 price screens below the ¥49.98 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 24, 2026.

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Analysis

China Life Insurance Co Ltd A (601628) currently trades at ¥39.17, while our model-based Fair Value estimate is ¥49.98, implying the stock looks roughly 21.6% undervalued today. The Quality Score stands at 69/100 (solid quality), in the Financial Services sector. Bull case: the Economic Profit group reads highest at a median of ¥57.79 per share, and 2 of the 6 models we run sit above the ¥39.17 price. Bear case: the Asset-Based group reads lowest at ¥14.11, and 4 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, China Life Insurance Co Ltd A generated revenue of 342B CNY at a net margin of 42.3%. Revenue declined 15.2% year over year. It earns a return on equity of 25.5%. Net debt stands at 349B CNY. Fundamentals as of Aug 24, 2026

Our scenario range runs from ¥37.48 (bear case) to ¥62.47 (bull case); at ¥39.17, the current price sits within 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 25% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −35% fair-value upside, at 28%, 601628 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥2.90 per share, which is 5.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
DDM Multi-Stage ¥9.05 ¥16.19 ¥20.60 64
Gordon GGM ¥9.05 ¥19.76 ¥33.25 63
Residual Income ¥40.62 ¥57.79 ¥460.41 63
All 6 models by family
Dividend Discount
Gordon GGM ¥9.05 ¥19.76 ¥33.25 63
DDM Multi-Stage ¥9.05 ¥16.19 ¥20.60 64
Multiples
P/E Multiple ¥53.15 ¥70.87 ¥88.58 61
P/B Multiple ¥22.11 ¥29.48 ¥36.85 53
Asset-Based
NCAV (Graham) ¥10.53 ¥14.11 ¥21.06 52
Economic Profit
Residual Income ¥40.62 ¥57.79 ¥460.41 63

Widest divergence: Economic Profit (¥57.79) versus Asset-Based (¥14.11). Highest evidence: DDM Multi-Stage (64).

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Key figures & financial health

P/E ratio 7.3 as of Jul 15, 2026
P/S ratio 1.85 P/E × margin
EPS (TTM) ¥5.12 price ÷ EPS = P/E 7.3
Dividend yield 2.2% payout 16.7%
Net margin 25.3% FY2025
Return on equity 25.5% TTM
More key figures
Profitability
Return on assets (EBIT) 1.3% avg 5y
Operating margin 38.1% TTM
Growth
Revenue (TTM) 342B CNY TTM
Revenue growth (YoY) −15.2% 3y avg −9.5%
EPS growth (YoY) −32.4%
Balance sheet & cash flow
Free cash flow 653B CNY FY2025
Net debt 349B CNY FY2025 · ≈ 0.5 yrs of FCF

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 57 · Market factors (momentum, volatility) 45

Profitability 47
Margins and returns on capital today
Quality Growth 68
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 1
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 29
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People's Republic of China. The company operates through Life Insurance Business, Health Insurance Business, Accident Insurance Business, and Other Businesses segments.

Full company description

China Life Insurance Company Limited, together with its subsidiaries, operates as a life insurance company in the People's Republic of China. The company operates through Life Insurance Business, Health Insurance Business, Accident Insurance Business, and Other Businesses segments. It offers life, annuity, health, and accident insurance products to individuals and groups. The company was founded in 1949 and is based in Beijing, the People's Republic of China. China Life Insurance Company Limited operates as a subsidiary of China Life Insurance (Group) Company.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Life Insurance Co Ltd A reported revenue of 609B CNY in FY2025 versus 795B CNY in FY2021, a compound −6.4%/yr. Reported net income was 154B CNY in FY2025, compounding +32.0%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
609B CNY
Latest YoY
+18.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−9.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.8%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+27.1% (24.9 + 2.2)
Revenue −6.4%/yr
FY21 795B CNY
FY22 822B CNY
FY23 396B CNY
FY24 512B CNY
FY25 609B CNY
Net income +32.0%/yr
FY21 50.8B CNY
FY22 32.1B CNY
FY23 51.2B CNY
FY24 107B CNY
FY25 154B CNY
Character of growth · EPS growth decomposed (2014-2025) +15.4 % p.a.
Revenue per share +2.4 %

of which total revenue +2.4 % · buybacks/dilution +0.0 %

EBIT margin +10.9 %
Tax rate +1.6 %
Residual (interest, one-offs) +0.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Life Insurance Co Ltd A Fair Value". https://www.fairvalue-calculator.com/stock/601628

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 63 · Top 25%
Fair Value upside +28% · Above median
Return on equity (TTM) 25% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 42% · Top 25%
Operating margin (TTM) 38% · Top 25%
Revenue growth −15% · Bottom 25%
Dividend yield (TTM) 2.2% · Below median
Debt / equity 0.06× · Lower than 75% of peers

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 7.3× · Cheaper than median
P/B 1.78× · Pricier than median
P/S (TTM) 3.09× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median
EV/EBITDA 6.0× · Cheaper than median
PEG 0.68× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE70 · sector 18
FUTURE0 · sector 43
PAST100 · sector 43
HEALTH97 · sector 84
DIVIDEND44 · 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

Similar stocks

10 more Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
Ping An Insurance (Group) Company 601318 ¥55.82 ¥84.72 +52%
AIA Group 1299 HK$73.00 HK$33.57 −54%
Manulife Financial Corporation MFC C$59.80 C$38.80 −35%
Aflac Incorporated AFL $116.52 $74.34 −36%
Great-West Lifeco Inc GWO C$90.25 C$39.53 −56%
MetLife, Inc MET $96.51 $68.27 −29%
Life Insurance Corporation LICI ₹412.15 ₹392.93 −5%
China Pacific Insurance (Group) Co 601601 ¥30.20 ¥57.51 +90%
Samsung Life Insurance Co 032830 301,000 KRW 191,293 KRW −36%
Power Corporation POW C$94.43 C$31.01 −67%

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Frequently asked questions

Is China Life Insurance Co Ltd A (601628) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of ¥49.98 versus a price of ¥39.17, about +28% upside (undervalued).
What is the fair value of 601628?
Our model-based fair value for China Life Insurance Co Ltd A is ¥49.98 (as of Aug 24, 2026), built from audited fundamentals. The current price: ¥39.17.
What is the quality score of 601628?
China Life Insurance Co Ltd A has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Life Insurance Co Ltd A (601628)?
China Life Insurance Co Ltd A reported trailing-twelve-month revenue of about 342B CNY (latest available figure, as of Aug 24, 2026).
What is the net profit margin of 601628?
The net profit margin of China Life Insurance Co Ltd A is about 42.3%, meaning it keeps roughly 42.3% of revenue as net income. Based on the latest reported figures.
Does China Life Insurance Co Ltd A pay a dividend?
China Life Insurance Co Ltd A currently shows a dividend yield of about 2.19% relative to its recent price (as of Aug 24, 2026).
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