Investment Rating - The report maintains a "Buy" rating for ZhongAn Online (06060.HK) with a target price of HKD 23.28, while the current price is HKD 14.58 [1]. Core Views - The successful completion of a USD 35 million Series A financing for ZA Tech, now renamed Peak3, highlights the market's recognition of its business model and growth potential [1]. - ZhongAn Online is a leading internet insurance company with a solid foundation for profitability, as evidenced by a total premium income of CNY 29.501 billion in 2023, reflecting a year-on-year increase of 24.7% [1]. - The company is focusing on building a second growth curve through its technology and banking segments, with expectations of gradually achieving breakeven [1][2]. Summary by Sections Financing and Business Development - ZA Tech's financing round led by EQT and the recognition of its business model indicate strong market confidence [1]. - The restructuring of ZhongAn International allows for greater flexibility and autonomy in financing and business development [1]. Insurance Business Performance - In 2023, ZhongAn Online's total premium income reached CNY 29.501 billion, with insurance service revenue of CNY 27.521 billion, both showing significant year-on-year growth [1]. - The four major insurance segments—Healthy Ecosystem, Digital Life, Consumer Finance, and Automotive Ecosystem—reported premium income of CNY 9.806 billion, CNY 12.563 billion, CNY 5.551 billion, and CNY 1.580 billion, respectively, with growth rates of 9.2%, 41.6%, 22.5%, and 24.7% [1]. Technology and Banking Segments - ZA Tech operates a light-asset model in the insurance technology sector, generating CNY 325 million in revenue in 2023, with a gross margin of 46% [1]. - ZA Bank, as one of Hong Kong's first virtual banks, has achieved a deposit balance exceeding HKD 10 billion, with a loan-to-deposit ratio of 46.4% [2]. - The bank's net interest margin improved from 1.84% in 2022 to 1.94% in 2023, indicating enhanced asset quality and operational efficiency [2]. Future Outlook - The report anticipates that the self-operated channel construction and business structure optimization will continue to drive performance in the insurance segments [1]. - The technology and banking segments are expected to create a second growth curve, with gradual improvements in key performance indicators [2].

Financial Performance - Total premiums for 2023 reached RMB 29,684.639 million, a 24.7% increase from RMB 23,651 million in 2022[2] - Net profit attributable to shareholders for 2023 was RMB 4,077.855 million, compared to a loss of RMB 1,112.414 million in 2022[2] - Total insurance service revenue for 2023 reached RMB 27.54 billion, a 24.7% increase from RMB 22.19 billion in 2022[35] - Investment income net amount for 2023 was RMB 4.19 billion, a significant increase from RMB 1.76 billion in 2022[35] - Total revenue for the year ended December 31, 2023, reached approximately RMB 33.54 billion, a year-on-year increase of 44.2%[99] - The company recorded a net profit of approximately RMB 3.84 billion for the year ended December 31, 2023, compared to a net loss of about RMB 1.38 billion for the year ended December 31, 2022[120] Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 42,863.606 million, down from RMB 47,648.878 million in 2022[2] - The total liabilities decreased to RMB 22,790.183 million in 2023 from RMB 30,033.758 million in 2022[2] - The total equity attributable to shareholders increased by 27.3% to RMB 20,073.423 million in 2023 from RMB 15,766.090 million in 2022[5] - The company's asset-liability ratio decreased by 9.8 percentage points to approximately 53.2% as of December 31, 2023, from about 63.0% as of December 31, 2022[129] Premiums by Ecosystem - Total premium for the health ecosystem reached 9.806 billion yuan in 2023, providing health coverage for over 125 million insured users[14] - The digital lifestyle ecosystem's total premium exceeded 12.563 billion yuan in 2023, a year-on-year growth of 41.6%[15] - The consumer finance ecosystem's total premium reached 5.551 billion yuan in 2023, with a year-on-year increase of 22.5%[16] - The auto insurance ecosystem's total premium was 1.58 billion yuan in 2023, growing by 24.7% year-on-year, significantly above the industry average[17] Technology and Innovation - The company aims to continue leveraging technology to enhance user experience and drive sustainable growth[12] - The company plans to focus on technology-driven innovation and high-quality service to create greater value for users and investors[10] - R&D investment amounted to 1.192 billion yuan in 2023, representing 4.0% of total premiums, enhancing technological capabilities[19] - The company launched the first AIGC (Generative AI Technology) application white paper in the domestic insurance industry in May 2023[26] - The company has filed a total of 588 patent applications, including 167 overseas, with 199 patents granted, a year-on-year increase of 19.9%[61] Market Position and Recognition - The company ranked ninth in China's property insurance industry by total premiums, with a market share of 24.4% in the domestic internet property insurance market, the highest in the sector[30] - The company was included in the "2023 China Top 500" list by Fortune magazine, marking its first appearance and recognition as the only insurtech company on the list[30] Governance and Management - The company has a diverse management team with extensive experience in finance and technology sectors[138] - The board of directors consists of 2 executive directors, 5 non-executive directors, and 3 independent non-executive directors, ensuring a balanced governance structure[157] - The company has adopted corporate governance codes to enhance transparency and accountability to shareholders and clients[155][156] - The management team has extensive experience in the insurance industry, contributing to informed decision-making and strategic planning[147][148][149] Risk Management - The company faces foreign exchange risks due to operations primarily in China, with assets and liabilities denominated in various foreign currencies[130] - The company emphasizes the importance of risk management strategies and has provided independent reviews to ensure alignment with overall business objectives[186] Employee and Compensation - The company has 2,679 full-time employees as of December 31, 2023, with numbers fluctuating based on business needs[134] - The total employee benefits cost, including directors and supervisors' remuneration, amounted to RMB 2.317 billion[134] Future Outlook - The company plans to continue focusing on the "insurance + technology" dual-engine strategy to enhance brand building and optimize underwriting efficiency[98] - The company aims to maintain a gender diversity ratio of at least 41.4% female employees, with a total workforce of 2,679[194]

Investment Rating - The report assigns an "Accumulate" rating for ZhongAn Online (06060) with a target price based on the closing price of 12.54 on April 12, 2024 [1]. Core Insights - ZhongAn Online's 2023 annual report shows a total premium of 29.685 billion, a year-on-year increase of 23.7%, and an insurance service revenue of 27.535 billion, up 24.1%. The net profit attributable to shareholders was 4.079 billion, turning positive after excluding a one-time gain from the conversion of ZhongAn International to an associate [2][3]. - The company is focusing on the synergy of its four ecosystems: health, digital life, consumer finance, and automotive, which contributed to the premium growth [2][3]. - The report anticipates revenue growth for 2024-2026 to be 33.070 billion, 38.626 billion, and 44.690 billion respectively, with net profits expected to be 0.854 billion, 1.079 billion, and 1.324 billion respectively [3]. Summary by Sections Premium and Revenue Growth - Total premium reached 29.685 billion, with significant contributions from digital life (12.563 billion, +41.6%) and consumer finance (5.551 billion, +22.5%) [2]. - Health ecosystem premiums were 9.806 billion (+9.2%), while automotive premiums were 1.580 billion (+24.7%) [2]. Profitability Metrics - The comprehensive loss ratio (COR) for health was 87.2%, digital life was 99.5%, consumer finance was 96.4%, and automotive was 95.4% [2]. - The net profit margin showed a significant increase, with net profit growth of 466.58% in 2023, although a decline is expected in 2024 [3]. Investment Performance - The investment portfolio saw a total investment income of 720 million, turning positive from a loss, primarily due to fair value changes [2]. - The company increased its bond investments significantly, with a 42.0% year-on-year increase to 18.436 billion [2]. Future Projections - Earnings per share (EPS) are projected to be 0.58, 0.73, and 0.90 for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 19.93x, 15.78x, and 12.86x [3].

公司研 究 证 券研究 报 告 非银行金融 2024年04月04日 众 安在线（06060.HK）2023年报点评 推 荐 （维持） 目标价：23.73港元 核心业务保持高增，投资收益大幅改善 当前价：13.68港元 事项： 华创证券研究所  2023年公司实现归母净利润为40.78亿元，实现扭亏为盈；报告期末归母净资 证券分析师：徐康 产 200.73 亿元，同比+27.3%。2023 年公司实现保费收入 295.01 亿元，同比 +24.7%；综合成本率同比+1.0pct 至 95.2%。净/总投资收益率 2.2%/1.9%，同 电话：021-20572556 比-1.0pct/+2.9pct。 邮箱：xukang@hcyjs.com 执业编号：S0360518060005 评论： 联系人：陈海椰  积极推进自营渠道建设，推动保费高速增长。2023 年，公司自营渠道总保费 76.14亿元，同比+31.0%；占总保费比重同比+1.3pct至25.8%。报告期内，公 邮箱： chenhaiye@hcyjs.com 司持续深化市场布局，实施多场景、多维度策略，专注自营渠道建设，为用户 提供全方位保障。报告期 ...

2024年4月1日 公司研究 保费维持高增，利润由亏转盈 ——众安在线（6060.HK）2023 年年报点评 买入（维持） 要点 当前价：12.5元港币 事件： 作者 2023年，众安在线实现营业收入335.4亿元，同比+44.2%；保险服务收入275.4 分析师：王一峰 亿元，同比+24.1%；归母净利润 40.8 亿元，同比扭亏为盈；承保利润（境内） 执业证书编号：S0930519050002 13.1 亿元，同比+1.7%；集团净投资收益率 2.2%，同比-1.1pct，总投资收益率 010-57378038 wangyf@ebscn.com 2.7%，同比+2.9pct。 联系人：黄怡婷 010-57378023 点评： huangyiting@ebscn.com 投资收益显著改善，归母净利润扭亏为盈。2023 年，公司实现归母净利润 40.8 市场数据 亿元，同比扭亏为盈（22年亏损11.1亿元），其中23H1/H2分别盈利2.2/38.6 总股本(亿股) 14.70 亿元，主要受益于投资收益大幅改善、承保利润同比增厚以及众安国际由附属公 总市值(亿元港币)： 183.73 一年最低/最高(元港币) ...

Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [3][4]. Core Insights - The company achieved a net profit of 4.08 billion RMB in 2023, recovering from a loss of 1.11 billion RMB in 2022. After adjustments related to the transition of a subsidiary to an associate, the adjusted net profit stands at 290 million RMB [2][4]. - The insurance segment turned profitable, while the banking segment's losses narrowed. The net profits for the insurance, technology, and banking segments in 2023 were 550 million RMB, -470 million RMB, and -280 million RMB, respectively [2][4]. - Total premiums reached 29.5 billion RMB, reflecting a year-on-year growth of 24.7%. The health, digital life, consumer finance, and automotive segments saw premium growth rates of 9%, 42%, 23%, and 25%, respectively [2][4][7]. - The comprehensive cost ratio improved to 95.2%, with a claims ratio of 56.8% and an expense ratio of 38.4% [2][4][8]. Financial Performance Summary - Insurance service revenue is projected to grow from 27.54 billion RMB in 2023 to 39.71 billion RMB by 2026, with a year-on-year growth rate of 24.09% in 2023 [4][10]. - The net profit is expected to decline significantly by 90.1% in 2024, followed by a recovery in subsequent years, reaching 712 million RMB by 2026 [4][10]. - The earnings per share (EPS) is forecasted to be 2.77 RMB in 2023, dropping to 0.28 RMB in 2024, and gradually increasing thereafter [4][10]. Valuation Metrics - The report assigns a comparable company valuation multiple of 1.29x to 1.36x for the 2024E price-to-book (PB) ratio, suggesting a reasonable value range of 18.26 RMB to 19.23 RMB, equivalent to 20.13 HKD to 21.20 HKD [2][4][6]. - The current stock price corresponds to a valuation of 0.8x PB for 2024E, indicating potential upside [2][4].

Investment Rating - Maintain BUY with a new target price of HK$22.0 [2][6] Core Viewpoints - ZhongAn reported a significant turnaround in FY23, with net profit attributable to shareholders reaching RMB4.1bn, compared to a net loss of RMB1.1bn in FY22 [2] - Excluding the one-off gain from the disposal of ZA International (RMB3.78bn), the insurer recorded a net profit of RMB294mn, in line with consensus [2] - The company's growth is driven by its digital lifestyle ecosystem, technology export, and ZA Bank's breakeven progress [2][6] Domestic P&C Insurance - Domestic P&C insurance premiums grew by 33.1% YoY in 2H23, driven by digital lifestyle-related products such as e-commerce cargo insurance, travel insurance, and pet insurance [2] - The underwriting combined ratio (CoR) rose 1.0ppt to 95.2% in 2023, but underwriting profit (UWP) increased by 1.7% YoY to RMB1.3bn due to higher insurance revenue (+24.2% YoY) [2] - The health segment saw a 130.6% YoY increase in gross written premiums (GWP) for critical illness insurance, reaching RMB1.3bn in 2023 [2] Technology Export - Revenue from domestic technology export surged 73% YoY to RMB504mn in 2023, benefiting from the Digital China initiative [2] ZA Bank Performance - ZA Bank's net revenue increased by 42.9% YoY to RMB366mn in 2023, with a net interest margin (NIM) expansion of 10bps to 1.94% [2] - The bank launched US-stock trading in January 2024, which is expected to attract tech-savvy customers and improve retention [2] Proprietary Channels - Premiums from proprietary channels grew 31.0% YoY to RMB7.6bn, accounting for 26% of total GWP [2] - In the Health ecosystem, GWP from proprietary channels increased by 45.0% YoY to RMB4.4bn, representing 44.5% of total Health GWP [2] - The number of paid customers rose 14.8% to 11.43mn, with premiums per user increasing by 14.4% YoY to RMB670 [2] Financial Projections - FY24-26E net profit is projected at RMB434mn, RMB547mn, and RMB678mn, respectively [3] - The underwriting combined ratio (CoR) is expected to remain stable at 95.8%/96.0%/96.0% for FY24-26E, with underwriting profits projected at RMB1.38bn/RMB1.56bn/RMB1.77bn [6] Valuation - The stock is trading at FY24E 0.9x P/B and FY24E 0.5x P/S [5] - The fair value is based on a FY24E P/B of 1.46x, implying a 20-year growth rate of 8% [6]

Investment Rating - Maintain "Overweight" rating with a target price of HKD 29.88 per share, corresponding to a 2024 P/B of 2.0x [3] Core Views - The company achieved a turnaround in 2023 with adjusted net profit attributable to shareholders of RMB 294 million, driven by improved investment returns [3] - Premium income grew rapidly, with underwriting profitability remaining stable [3] - Technology output expanded rapidly, and the virtual bank further reduced losses [3] Financial Performance - 2023 net profit attributable to shareholders was RMB 4.078 billion, including a one-time investment gain of RMB 3.784 billion from the conversion of ZhongAn International to a joint venture [3] - Adjusted net profit attributable to shareholders was RMB 294 million, achieving a turnaround due to three factors: 1) slight improvement in underwriting profitability, 2) significant improvement in investment returns, and 3) better exchange rate gains [3] - 2023 premium income reached RMB 29.501 billion, up 24.7% YoY, driven by digital life and health ecosystems [3] - 2023 investment income was RMB 4.961 billion, with adjusted investment income of RMB 1.177 billion, turning from a loss to a profit YoY [3] Business Segments Health Ecosystem - Premium income increased by 9.2% YoY to RMB 9.806 billion, driven by a 23.6% increase in paying users [3] - New premium contribution reached 52%, up 10 percentage points YoY [3] - Underwriting combined ratio improved by 1.4 percentage points to 87.2% [3] Digital Life Ecosystem - Premium income surged 41.6% YoY to RMB 12.563 billion, mainly driven by e-commerce return insurance and travel business [3] - Underwriting combined ratio remained flat at 99.5% [3] Consumer Finance Ecosystem - Premium income grew 22.5% YoY to RMB 5.551 billion [3] - Underwriting combined ratio increased by 6.5 percentage points to 96.4% due to external environmental impacts [3] Auto Ecosystem - Premium income rose 24.7% YoY to RMB 1.580 billion, with new energy vehicle premiums surging 196.1% [3] - Underwriting combined ratio improved by 2.0 percentage points to 97.4% due to significant compression in expense ratio [3] Technology Output and Virtual Bank - Technology output revenue reached RMB 829 million, up 40.0% YoY, with 101 new insurance industry chain clients and 12 new bank and securities clients [3] - ZhongAn Bank's net revenue was HKD 366 million, up 42.9% YoY, with net loss ratio narrowing by 85.6 percentage points to 109.1% [3] Market Data - Current share price: HKD 11.92 [4] - 52-week price range: HKD 11.50-26.55 [5] - Current market capitalization: HKD 17.520 billion [5]

非银金融/保险Ⅱ 公 司 研 众安在线（06060.HK） 连续 3 年承保盈利，创新基因或带动保费持续增长 究 2024年03月27日 ——众安在线 2023 年业绩点评 投资评级：买入（维持） 高超（分析师） 吕晨雨（分析师） gaochao1@kysec.cn lvchenyu@kysec.cn 证 书编号：S0790520050001 证书编号：S0790522090002 日期 2024/3/26  连续3年承保盈利，保费增速有望维持，维持“买入”评级 港 当前股价(港元) 11.840 公司披露2023年年报，新准则下归母净利润40.8亿元、同比转盈，主要受到众 股 一年最高最低(港元) 26.800/11.300 公 安国际出售带来一次性损益 37.8 亿元，超此前预期，剔除一次性损益后，归母 司 总市值(亿港元) 174.03 净利润约为2.9亿元，同比转正，略低于此前预期，预计主要受到投资收益低于 信 流通市值(亿港元) 168.11 预期拖累，总投资收益率 1.9%，较 2022 年改善 2.9pct。承保端看，公司 2023 息 总股本(亿股) 14.70 年保费收入295亿元、同比+ ...

Investment Rating - The report maintains a "Buy" rating for ZhongAn Online (06060 HK) [1][4] Core Views - ZhongAn Online has achieved a turnaround from loss to profit through its "insurance + technology" dual-engine strategy [1] - The company's total premium income reached 29 501 billion yuan in 2023, a year-on-year increase of 24 7% [1] - Net profit attributable to the parent company was 4 078 billion yuan, marking a significant improvement from the previous year [1] - The comprehensive cost ratio improved to 95 2%, down by 1 0 percentage points year-on-year [1] - The company's self-operated channels achieved total premium income of 7 614 billion yuan, up 31 0% year-on-year [1] - ZA Bank, a subsidiary, has shown positive indicators with its interest margin increasing from 1 84% in 2022 to 1 94% in 2023 [1] Business Performance and Strategy - ZhongAn Online has built a diversified product matrix across four ecosystems: health, digital life, consumer finance, and automotive [1] - Health insurance premium income grew by 9 2%, with the "Million Medical" product contributing 6 515 billion yuan [1] - Digital life insurance premium income increased by 41 6%, driven by customized services for e-commerce and travel sectors [1] - Consumer finance premium income rose by 22 5%, with a focus on high-quality small-amount customers [1] - Automotive insurance premium income grew by 24 7%, with new energy vehicle insurance surging by 196% [1] - The company's technology output revenue reached 829 million yuan, up 40% year-on-year [1] - ZA Bank launched US stock trading services in February 2024, expanding its financial service offerings [1] Financial Forecasts - The report raises earnings forecasts for 2024 and 2025, and introduces a new forecast for 2026 [1] - Expected EPS for 2024-2026: 0 63/1 10/1 29 yuan per share [1] - Corresponding PB ratios: 0 82/0 77/0 75 times [1] - Revenue is projected to grow from 32 143 billion yuan in 2024E to 36 374 billion yuan in 2026E [2] - Net profit attributable to the parent company is expected to increase from 855 million yuan in 2024E to 1 761 billion yuan in 2026E [2] Market Position - ZhongAn Online maintains its leading position in the internet property insurance market [1] - The company's pet insurance business ranks at the top of the industry, with a cumulative transaction volume of 500 million yuan and a growth rate of 150% [1]