ZA ONLINE(06060) 太平洋·2024-04-14 16:00Investment Rating - The report assigns an "Accumulate" rating for ZhongAn Online (06060) with a target price based on the closing price of 12.54 on April 12, 2024 [1]. Core Insights - ZhongAn Online's 2023 annual report shows a total premium of 29.685 billion, a year-on-year increase of 23.7%, and an insurance service revenue of 27.535 billion, up 24.1%. The net profit attributable to shareholders was 4.079 billion, turning positive after excluding a one-time gain from the conversion of ZhongAn International to an associate [2][3]. - The company is focusing on the synergy of its four ecosystems: health, digital life, consumer finance, and automotive, which contributed to the premium growth [2][3]. - The report anticipates revenue growth for 2024-2026 to be 33.070 billion, 38.626 billion, and 44.690 billion respectively, with net profits expected to be 0.854 billion, 1.079 billion, and 1.324 billion respectively [3]. Summary by Sections Premium and Revenue Growth - Total premium reached 29.685 billion, with significant contributions from digital life (12.563 billion, +41.6%) and consumer finance (5.551 billion, +22.5%) [2]. - Health ecosystem premiums were 9.806 billion (+9.2%), while automotive premiums were 1.580 billion (+24.7%) [2]. Profitability Metrics - The comprehensive loss ratio (COR) for health was 87.2%, digital life was 99.5%, consumer finance was 96.4%, and automotive was 95.4% [2]. - The net profit margin showed a significant increase, with net profit growth of 466.58% in 2023, although a decline is expected in 2024 [3]. Investment Performance - The investment portfolio saw a total investment income of 720 million, turning positive from a loss, primarily due to fair value changes [2]. - The company increased its bond investments significantly, with a 42.0% year-on-year increase to 18.436 billion [2]. Future Projections - Earnings per share (EPS) are projected to be 0.58, 0.73, and 0.90 for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 19.93x, 15.78x, and 12.86x [3].