智通财经网·2025-07-23 01:54Core Viewpoint - ZhongAn Online (06060) is currently trading at 1.3x P/B, with CICC maintaining the company's profit forecast for 2025-2026 largely unchanged. The firm raised the target price by 31% to HKD 21, corresponding to 1.5x 2025e P/B and a 14.13% upside potential, while maintaining an outperform rating on the industry [1]. Group 1 - The total premium income for ZhongAn Online is expected to grow by 9% year-on-year in 1H25, with health insurance projected to achieve over 40% growth, driven by the popularity of the Zhongminbao series products. The auto insurance business is anticipated to grow by over 30%, mainly due to the new compulsory insurance and proactive development by the company [2]. - The underwriting profitability is expected to improve significantly, with the combined cost ratio (CoR) improving by 1.0 percentage point to 96.9%. This, combined with premium growth, is expected to lead to a substantial increase in underwriting profit to over RMB 500 million, resulting in a projected net profit increase of 870% year-on-year to RMB 540 million in 1H25 [2]. Group 2 - The technology business is expected to continue reducing losses, with the virtual bank projected to achieve overall profitability for the year. ZhongAn Bank has received permission to provide reserve banking services for stablecoin issuers, which could lead to various revenue streams through collaborations with digital asset exchanges and stablecoin issuers [3]. - The health insurance business is experiencing rapid growth due to the strong sales of Zhongminbao mid-to-high-end medical insurance. The company is viewed positively regarding its product creation and operational capabilities, with the overall opportunities in the health insurance sector expected to outweigh challenges amid healthcare reform [4].