August 29, 2007
Value Increasing on China Life

By Zacks Equity Research

Zacks senior Chinese market analyst Paul Cheung, CFA is reiterating his Buy recommendation on American Depositary Shares [ADS] of China Life Insurance (NYSE: LFC). For details, we looked into his report:

\'China Life announced its interim financial results for 2007, which exceeded market consensus. It is clear that China Life is the market leader in China\'s life insurance industry, where opportunities are significant.

\'Although China Life still faces growing competition and has not successfully completed its conversion to higher margin products, its current valuation does not fully reflect its growth prospects, in our view. Therefore, we maintain our Buy recommendation on China Life shares.

\'As of June 30, 2007, China Life had 650,000 agents, 12,000 direct sales representatives, and 90,000 non-dedicated agencies throughout China. Moreover, China Life had been the only state-owned life insurance company in China for a long time, so the company has built up its brand recognition in China. It will be almost impossible for its competitors to change China Life\'s leading position in China in the near future.\'

Read the full analyst report on LFC

(Source: Zacks.com)