China Life Insurance Company Limited

AI-generated fair value estimate for this company.

Method: Embedded Value (EV) approach: used FY2025 disclosed embedded value of CNY 1.47 trillion / 28,264,705,120 total shares outstanding (A+H combined) = CNY 52.02 EV per share; applied a 0.60x target P/EV multiple (mid-point of the ~0.5x-0.7x historical trading range for large Chinese life insurers) = CNY 31.21/share; converted to USD at the spot rate of 6.705 CNY/USD (Oct 3, 2026) = $4.66/share. A standard FCF/DCF model was not used because China Life's reported net income and free cash flow are dominated by volatile mark-to-market investment gains/losses (net income +126% YoY in 2025) rather than stable operating cash flow.

Reasoning: China Life Insurance Company Limited (HKEX: 2628) is China's largest state-owned life insurer, with CNY 7.4 trillion of investment assets, a 174% solvency ratio, and 2025 new business value growth of 35.7%; CILJF represents the Class H ordinary shares traded OTC in the US. An embedded-value-based appraisal is the standard actuarial method for insurers and better reflects franchise value than GAAP earnings distorted by equity-market swings.