ZA ONLINE(06060) 光大证券·2024-08-28 06:20Investment Rating - Buy (maintained) with a current price of HKD 12.62 [2] Core Views - Premium growth remains strong, but underwriting drags on profits [2] - The company's net profit attributable to shareholders in H1 2024 was RMB 60 million, a year-on-year decrease of 75%, mainly due to declines in investment income and underwriting profit [4][5] - The company's underwriting profit in H1 2024 was RMB 310 million, a year-on-year decrease of 41.4%, primarily due to rising asset quality risks and increased service infrastructure investment [6] - The company's annualized net investment return rate and total investment return rate in H1 2024 were 1.8% and 2.8%, respectively, down by 0.6pct and 1.6pct year-on-year [5] Financial Performance - In H1 2024, the company achieved operating revenue of RMB 16.04 billion, a year-on-year increase of 12.7%, and insurance service revenue of RMB 15.09 billion, a year-on-year increase of 18.9% [4] - The company's total premium income in H1 2024 was RMB 15.24 billion, a year-on-year increase of 5.4%, driven by the digital life and auto ecosystems [6] - The company's R&D investment in H1 2024 was RMB 460 million, a year-on-year decrease of 33.6%, accounting for 3.0% of total premium income [7] - The company's technology output business revenue in H1 2024 was RMB 440 million, a year-on-year increase of 65.5%, with domestic technology output revenue growing by 112.7% [7] Business Segments - The digital life ecosystem achieved premium income of RMB 7.41 billion in H1 2024, a year-on-year increase of 27.0%, accounting for 48.7% of total premium income [6] - The auto ecosystem achieved premium income of RMB 1.10 billion in H1 2024, a year-on-year increase of 34.0%, with new energy vehicle insurance premiums increasing by 214.8% [6] - The health ecosystem achieved premium income of RMB 4.54 billion in H1 2024, a year-on-year decrease of 9.6%, mainly due to a decline in per capita premiums [6] - The consumer finance ecosystem achieved premium income of RMB 2.18 billion in H1 2024, a year-on-year decrease of 21.6%, as the company proactively reduced business scale to address asset quality fluctuations [6] Market Position - The company ranks 9th in China's property insurance industry by total premium income in H1 2024, with a market share exceeding 20% in the domestic internet property insurance market, ranking first [7] - The company's self-operated channels achieved premium income of RMB 3.16 billion in H1 2024, accounting for 20.8% of total premium income, with a renewal rate increasing by 3.2pct to 90.5% [7] Profit Forecast and Valuation - The company's net profit attributable to shareholders for 2024-2026 is forecasted to be RMB 440 million, RMB 660 million, and RMB 750 million, respectively, down from previous forecasts of RMB 1.14 billion, RMB 1.29 billion, and RMB 1.46 billion [7] - The company's price-to-book (P/B) ratios for 2024-2026 are 0.81, 0.78, and 0.74, respectively [7]