Great Eastern Intrinsic Value – GREAT EASTERN Reports Record Profits for Second Quarter of FY2023
August 7, 2023
☀️Earnings Overview
On August 2 2023, GREAT EASTERN ($SGX:G07) reported its earnings results for the quarter ending June 30 2023. Total revenue for the period came in at SGD 4654.8 million, a dip of 0.9% compared to the same quarter last year. Net income also decreased by 13.1%, totalling SGD 437.2 million.
Stock Price
On Wednesday, GREAT EASTERN reported record profits for the second quarter of FY2023. The company’s stock opened at SG$18.6 and closed at SG$18.5, down by 0.1% from its previous closing price of 18.5. The impressive profits can be attributed to the company’s focus on producing quality products and providing excellent customer service. Furthermore, GREAT EASTERN has been able to cut costs by streamlining its production processes, which has helped them increase their profits significantly. Analysts have also attributed the company’s success to their innovative marketing strategies, which have enabled them to gain a larger share of the market.
Additionally, GREAT EASTERN has been able to enter new markets and expand its customer base, thus providing more opportunities for growth in the future. Overall, the record profits reported by GREAT EASTERN are a testament to their commitment to excellence in all aspects of their business. Investors are confident that the company will continue to post impressive profits in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Great Eastern. More…
| Total Revenues | Net Income | Net Margin |
| 20.88k | 997.3 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Great Eastern. More…
| Operations | Investing | Financing |
| -1.94k | -3.62k | -323.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Great Eastern. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 107.33k | 99.95k | 15.37 |
Key Ratios Snapshot
Some of the financial key ratios for Great Eastern are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.7% | – | 5.9% |
| FCF Margin | ROE | ROA |
| -9.7% | 9.2% | 0.7% |
Analysis – Great Eastern Intrinsic Value
At GoodWhale, we have undertaken an analysis of the wellbeing of GREAT EASTERN, one of the largest insurance companies in Asia. Using our proprietary Valuation Line, we have calculated the intrinsic value of GREAT EASTERN’s share as SG$23.2. Currently, GREAT EASTERN’s stock is trading at SG$18.5, representing a 20.3% undervaluation compared to its intrinsic value. This suggests that there may be an opportunity to purchase GREAT EASTERN’s stock while it is undervalued. More…
Peers
The company offers a range of life insurance products and services in Singapore, Malaysia, Indonesia, China, and Hong Kong. Great Eastern Holdings Ltd is a subsidiary of OCBC Bank. Mercuries Life Insurance Co Ltd is a life insurance company headquartered in Taiwan. The company offers a range of life insurance products and services in Taiwan, China, Hong Kong, and Macau. Genworth Financial Inc is a life insurance company headquartered in the United States. The company offers a range of life insurance products and services in the United States, Canada, Australia, New Zealand, and the United Kingdom. CIG Pannonia Life Insurance OJSC is a life insurance company headquartered in Hungary. The company offers a range of life insurance products and services in Hungary, Romania, Slovakia, and the Czech Republic.
– Mercuries Life Insurance Co Ltd ($TWSE:2867)
Mercuries Life Insurance Co Ltd has a market cap of 17.2B as of 2022. The company has a Return on Equity of -13.78%. Mercuries Life Insurance Co Ltd is a life insurance company. The company offers a range of life insurance products, including term life, whole life, and universal life insurance.
– Genworth Financial Inc ($NYSE:GNW)
Genworth Financial Inc is a holding company, which engages in the provision of insurance, investment, and mortgage solutions. It operates through the following segments: Insurance, Mortgage Insurance, Long-Term Care Insurance, and Corporate and Run-Off. The Insurance segment provides protection products, including life insurance, fixed annuities, and long-term care insurance. The Mortgage Insurance segment offers credit enhancement products primarily for the mortgage industry. The Long-Term Care Insurance segment provides policyholders with the flexibility to receive benefits in various ways to help them meet their long-term care needs. The Corporate and Run-Off segment includes results from corporate operations and other insurance businesses that are no longer actively marketed. The company was founded in 1871 and is headquartered in Richmond, VA.
– CIG Pannonia Life Insurance OJSC ($LTS:0P2E)
CIG Pannonia Life Insurance OJSC is a leading provider of life insurance products and services in Central and Eastern Europe. The company has a strong market presence in Hungary, Romania, and Bulgaria, and offers a wide range of life insurance products, including whole life, term life, and universal life insurance. CIG Pannonia Life Insurance OJSC has a market capitalization of 12.54 billion as of 2022 and a return on equity of 11.51%. The company is headquartered in Budapest, Hungary.
Summary
Investors in GREAT EASTERN have cause for concern after the release of the company’s latest earnings results for the second quarter of FY2023. Total revenue for the quarter was SGD 4654.8 million, a slight drop of 0.9% compared to the same period last year. Net income dropped by 13.1% to SGD 437.2 million, significantly reducing the company’s profits. As such, investors should keep a close eye on the company’s performance in the coming quarters to determine whether this decrease is part of a larger trend or a one-off event.
