Nika MA, an analyst from CMB International Securities, maintained the Buy rating on ZhongAn Online P & C Insurance Co., Ltd. The associated price target was raised to HK$23.00.
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Nika MA’s rating is based on ZhongAn Online P & C Insurance Co., Ltd’s impressive financial performance and strategic advancements. The company reported a significant increase in net profit for the first half of the year, with profits rising over eleven times compared to the previous year, driven by strong performance across its core business segments. The Property & Casualty (P&C) insurance segment showed improved underwriting profitability, with a substantial increase in underwriting profit due to a better loss ratio despite a slight rise in the expense ratio.
ZA Bank, a subsidiary of ZhongAn, exceeded market expectations by achieving profitability earlier than anticipated, with a notable increase in net revenue and a reduction in the cost-to-income ratio. The bank’s diversification in loan products and expansion in wealth management contributed to this success. Additionally, the technology segment reduced its net loss significantly, indicating progress in digital transformation efforts. These factors, combined with a revised target price reflecting the company’s strong performance and potential for further growth, underpin Nika MA’s Buy rating for the stock.
According to TipRanks, MA is ranked #817 out of 9952 analysts.
In another report released on August 21, DBS also reiterated a Buy rating on the stock with a HK$24.00 price target.