ZA ONLINE(HK:06060) Haitong Securities·2024-09-01 04:41Investment Rating - The report maintains an "Outperform" rating for the company [4][5] Core Views - The company has shown a significant decline in net profit, with a 75% year-on-year decrease to 0.55 billion yuan, driven by declines in both underwriting profit and investment income [2][6] - The company is expected to have a long-term development potential, distinguishing itself from traditional insurance companies and aligning more closely with internet technology firms [2][6] - The estimated reasonable value range for the company's stock is between 16.85 yuan and 17.58 yuan, corresponding to a price-to-book (PB) ratio of 1.20x-1.25x for 2024E [2][6] Financial Performance Summary - The company reported a net profit of 0.55 billion yuan for the first half of 2024, down 75% year-on-year, with the insurance segment contributing a net profit of 1.4 billion yuan, a 69% decline [2][5] - Total assets increased by 0.8% to 202.4 billion yuan, while the comprehensive cost ratio rose by 2.1 percentage points to 97.9% [2][5] - The total premium income for the insurance segment was 15.2 billion yuan, a 5.4% increase year-on-year, with notable growth in the digital life and automotive ecosystems [2][7] Insurance Segment Analysis - The health ecosystem's premium decreased by 9.6% to 4.5 billion yuan, while the digital life ecosystem saw a 27% increase to 7.4 billion yuan, now accounting for 48.7% of total premiums [2][7] - The comprehensive cost ratio for the health ecosystem increased by 3.2 percentage points to 95.7%, while the automotive ecosystem improved its cost management, reducing its cost ratio by 10.7 percentage points [2][8] Technology and Banking Segment - The technology output revenue grew by 65.5% to 440 million yuan, with domestic revenue increasing by 112.7% [2][6] - The banking segment, ZA Bank, showed significant growth with total assets and deposits increasing by 43% and 44% respectively, and net income rising by 46% [2][6] Investment Strategy - The company is adjusting its investment strategy by increasing allocations to bonds and stocks while reducing exposure to funds, with total investment income decreasing to 3.3% [2][6] - The investment asset composition includes 49.1% in bonds, 4.2% in stocks, and 18.1% in funds, reflecting slight changes from the previous year [2][6]