ZA ONLINE(HK:06060) Guotai Junan Securities·2025-03-20 11:21Investment Rating - The report maintains an "Accumulate" rating for the company [1][10]. Core Insights - The company is expected to achieve a net profit of 603 million RMB in 2024, representing a year-on-year increase of 105.4% after excluding the impact of consolidating Zhong An International [3][10]. - The profit improvement is attributed to three main factors: stable underwriting profit, significant investment income boost due to market recovery, and the technology segment turning profitable [10]. Financial Summary - Revenue: The company reported revenue of 19,314 million RMB in 2024, a 15% increase from 2023 [8]. - Net Profit: The net profit for 2024 is projected at 603 million RMB, a substantial recovery from a loss of 13.56 million RMB in 2022 [8][11]. - Investment Returns: Total investment income increased to 13.35 billion RMB in 2024, with a total investment return rate of 3.4%, up by 1.5 percentage points year-on-year [10][11]. - Premium Income: The company achieved premium income of 334.17 billion RMB in 2024, reflecting a 13.3% year-on-year growth [11]. Business Segments Performance - Health Ecosystem: Premium income reached 103.38 billion RMB, growing by 5.4% year-on-year, with significant contributions from critical illness insurance and outpatient insurance [10][11]. - Digital Life Ecosystem: This segment saw a 28.9% increase in premium income to 161.97 billion RMB, driven by e-commerce return insurance and travel business [10][11]. - Consumer Finance Ecosystem: Premium income decreased by 12.9% to 48.32 billion RMB as the company reduced business scale to manage credit risk [10][11]. - Automotive Financial Ecosystem: Premium income grew by 29.8% to 20.51 billion RMB, with new growth expected from compulsory traffic accident insurance [10][11]. Technology and Banking Improvements - The technology segment generated revenue of 9.56 billion RMB, marking a 15.3% increase, and turned profitable with a net profit of 0.78 billion RMB [10][11]. - Zhong An Bank's net income rose by 52.6% to 5.48 billion HKD, with the net loss rate narrowing significantly [10][11]. - The application of AI technology across business scenarios is expected to enhance operational efficiency and open new growth avenues for technology output [10].