ZA ONLINE(HK:06060) KAIYUAN SECURITIES·2024-03-26 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5] Core Views - The company has achieved underwriting profitability for three consecutive years, with premium growth expected to continue due to its innovative capabilities [5][6] - The 2023 annual report shows a net profit attributable to shareholders of 4.08 billion HKD, a significant turnaround from a loss, primarily driven by a one-time gain from the sale of a subsidiary [5] - The company’s premium income reached 29.5 billion HKD in 2023, reflecting a year-on-year increase of 24.7% [5] Financial Performance Summary - The total investment return rate improved to 1.9% in 2023, up by 2.9 percentage points from 2022 [5] - The underwriting combined ratio was 95.2%, an increase of 1.0 percentage point year-on-year, with underwriting profit of 1.19 billion HKD [5] - The company has adjusted its net profit forecasts for 2024-2025 to 1.12 billion HKD and 1.37 billion HKD, respectively, with a new forecast for 2026 set at 1.65 billion HKD [5][7] Premium Income Breakdown - The company’s four major ecosystems showed strong premium income growth: - Health ecosystem: 9.81 billion HKD, +9.2% YoY - Digital life ecosystem: 12.56 billion HKD, +41.6% YoY - Consumer finance ecosystem: 5.55 billion HKD, +22.5% YoY - Automotive ecosystem: 1.58 billion HKD, +24.7% YoY [6] - The digital life ecosystem benefited from macroeconomic recovery, with e-commerce and travel segments showing significant growth [6] Technology and Banking Developments - The company’s technology output revenue reached 830 million HKD in 2023, a 40% increase YoY, with a total of 848 clients served [6] - ZA Bank, the company’s virtual bank, reported a deposit balance exceeding 11.7 billion HKD, enhancing its product offerings and revenue generation capabilities [6]