ZhongAn Online P & C Insurance Co., Ltd (6060) AI Stock Analysis

• Market Cap: €27.28B
• Dividend Yield: N/A
• Average Volume (3M): 41.57M
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.77
• Revenue Growth: -1.04%
• EPS Growth: -85.18%
• Country: HK
• Employees: 2,395
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.45
• Shares Outstanding: 1,419,812,900
• 10 Day Avg. Volume: 106,997,359
• 30 Day Avg. Volume: 41,570,280
• PEG Ratio: 0.05
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.44
• Price Target Upside: -3.78% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: HK$19.00 ▼(-0.84%Downside)

The stock demonstrates strong technical momentum, which is the most significant positive factor. However, its relatively high valuation and financial concerns regarding debt levels moderate the overall attractiveness.

Positive Factors

Banking and Financial Services

ZA Bank likely to benefit from HK stablecoin boom, potentially boosting the bank’s net interest income and enhancing the NIM.

Earnings Performance

ZhongAn reported an earnings beat in FY24, with net profit more than doubling, driven by steady profit growth of insurance and a turnaround in tech exports.

Regulatory Developments

ZhongAn’s share price surged 55% propelled by a resurgence of sentiment spurred by the passage of the Stablecoins Bill by the HK LegCo and the GENIUS Act advancement to the US Senate.

Negative Factors

Economic Conditions

Macro tailwinds, such as declining onshore interest rates in China, are expected to support investment profit by improving net investment yields.

Market Competition

A substantial slowdown in gross written premium growth, rising competition from internet giants and traditional insurers, and slower China GDP growth pose risks.

Premium Growth

The company delivered 13% y/y premium growth in 4M25, mainly driven by robust growth in health and auto insurance.

ZhongAn Online P & C Insurance Co., Ltd Business Overview & Revenue Model

Company Description

ZhongAn Online P & C Insurance Co., Ltd (6060) is a leading Chinese online-only insurer, primarily focused on property and casualty insurance. Established in 2013, the company operates at the intersection of technology and insurance, leveraging data analytics and a digital platform to provide innovative insurance solutions. ZhongAn's core offerings include health, travel, consumer finance, and auto insurance products, catering to the growing demand for digital insurance in China.

How the Company Makes Money

ZhongAn generates revenue primarily through the underwriting of insurance policies across various sectors, including health, lifestyle consumption, consumer finance, and auto. The company employs a digital-first approach, which allows for scalable operations and cost efficiencies. Key revenue streams include premiums collected from policyholders and investment income from its insurance float. ZhongAn has developed significant partnerships with leading technology platforms and e-commerce companies, such as Alibaba and Tencent, which help drive customer acquisition and facilitate distribution of its products through these partners' ecosystems. Additionally, the company benefits from its proprietary technology platform, which supports data-driven underwriting and personalized insurance solutions, enhancing customer experience and retention.

ZhongAn Online P & C Insurance Co., Ltd Financial Statement Overview

Summary

ZhongAn Online P & C Insurance Co., Ltd shows consistent revenue and profitability growth with improved margins. However, increasing debt levels and occasional fluctuations in operational efficiency and cash flow are concerns.

Income Statement

ZhongAn Online P & C Insurance Co., Ltd has shown consistent revenue growth with a notable increase from 2023 to 2024. The net profit margin improved significantly in 2024, indicating enhanced profitability. However, the company experienced fluctuations in EBIT and EBITDA margins over the years, with some negative figures in earlier periods. Overall, the income statement reflects a positive trend in revenue and profitability, but with some instability in operational efficiency.

Balance Sheet

The company maintains a stable debt-to-equity ratio and a strong equity position relative to its assets. However, the debt levels have been increasing, which could pose a risk if not managed carefully. The return on equity has shown improvement in recent years, indicating effective use of shareholder funds. The balance sheet demonstrates financial stability, but the increasing debt requires monitoring.

Cash Flow

Cash flow analysis reveals a positive trend in operating cash flow and free cash flow growth over the years. However, there was a decrease in free cash flow from 2023 to 2024. The company has managed to maintain a good operating cash flow to net income ratio, indicating efficient cash management. While there is a positive trajectory, occasional fluctuations in cash flow need attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
33.73B	29.23B	22.64B	21.94B	18.52B
	Gross Profit
33.73B	29.37B	22.64B	21.94B	18.52B
	EBIT
29.59B	24.74B	-1.31B	1.09B	245.06M
	EBITDA
1.63B	4.83B	-949.86M	1.40B	560.07M
	Net Income Common Stockholders
603.46M	4.08B	-1.63B	757.10M	254.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.47B	1.58B	15.39B	26.28B	27.47B
	Total Assets
45.28B	42.86B	54.56B	51.77B	45.67B
	Total Debt
7.12B	7.19B	7.18B	6.65B	6.79B
	Net Debt
5.65B	5.61B	3.65B	2.34B	-1.63B
	Total Liabilities
24.36B	22.79B	37.53B	32.64B	28.28B
	Stockholders Equity
20.93B	20.07B	15.21B	16.75B	15.71B
Cash Flow		Free Cash Flow
1.08B	1.92B	-1.11B	-863.71M	4.61B
	Operating Cash Flow
1.98B	2.21B	-701.91M	-602.95M	4.86B
	Investing Cash Flow
-556.30M	-5.33B	158.04M	-5.94B	-6.27B
	Financing Cash Flow
-1.09B	1.14B	236.03M	2.19B	7.11B

ZhongAn Online P & C Insurance Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6060, the sentiment is Positive. The current price of 19.16 is above the 20-day moving average (MA) of 16.26, above the 50-day MA of 13.40, and above the 200-day MA of 12.78, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6060.

ZhongAn Online P & C Insurance Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1339	85 Outperform	$369.60B	5.22	17.85%	2.34%	4.62%	81.63%
2328	79 Outperform	$339.87B	9.74	13.15%	5.94%	3.52%	26.44%
6060	69 Neutral	€27.28B	41.68	2.91%	―	-1.04%	-85.18%
1456	67 Neutral	HK$58.79B	11.54	2.91%	4.20%	230.87%	227.96%
1508	66 Neutral	€46.30B	4.04	10.61%	4.22%	0.54%	84.27%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%

ZhongAn Online P & C Insurance Co., Ltd Corporate Events

ZhongAn Online P & C Insurance Schedules AGM to Discuss Key Resolutions

ZhongAn Online P & C Insurance Co., Ltd has announced its upcoming annual general meeting (AGM) scheduled for June 20, 2025, in Shanghai. The meeting will address several key resolutions including the approval of the company’s 2024 financial reports, the re-appointment of auditors, and the election and re-election of directors for the board’s fifth session. Additionally, the AGM will consider the company’s three-year development and capital planning reports for 2025-2027, which are crucial for its strategic growth and operational planning.

The most recent analyst rating on (HK:6060) stock is a Buy with a HK$12.40 price target. To see the full list of analyst forecasts on ZhongAn Online P & C Insurance Co., Ltd stock, see the HK:6060 Stock Forecast page.

ZhongAn Online Reports Gross Written Premiums for Early 2025

ZhongAn Online P & C Insurance Co., Ltd announced that its gross written premiums for the period from January 1, 2025, to April 30, 2025, amounted to approximately RMB10,935 million. This financial data is prepared according to Chinese accounting standards and remains unaudited. Stakeholders are advised to exercise caution in relying on this information, as it has not been reviewed by the company’s audit and consumer rights protection committee.

The most recent analyst rating on (HK:6060) stock is a Buy with a HK$12.40 price target. To see the full list of analyst forecasts on ZhongAn Online P & C Insurance Co., Ltd stock, see the HK:6060 Stock Forecast page.

ZhongAn Online P & C Insurance Reports Strong Solvency Ratios for Q1 2025

ZhongAn Online P & C Insurance Co., Ltd. announced its key solvency-related indicators for the first quarter of 2025, revealing a comprehensive solvency margin ratio of 220.35% and a core solvency margin ratio of 214.32%. The company’s insurance business income for the quarter was RMB 795,698.23 ten thousand, with a net profit of RMB 56,854.58 ten thousand. These figures, prepared according to Chinese Accounting Standards, highlight the company’s strong financial position and compliance with the National Financial Regulatory Administration’s requirements, potentially reinforcing investor confidence.

ZhongAn Online Reports Q1 2025 Gross Written Premiums

ZhongAn Online P & C Insurance Co., Ltd. announced that its aggregate gross written premiums for the first quarter of 2025 amounted to approximately RMB7,957 million. This financial data is prepared according to the Accounting Standards for Business Enterprises and relevant regulations in China, though it remains unaudited. Stakeholders are advised to exercise caution when interpreting this information, as it has not been reviewed by the company’s audit committee.

ZhongAn Online P & C Insurance Releases 2024 Annual Results

ZhongAn Online P & C Insurance Co., Ltd. has released its audited annual results for the year ending December 31, 2024. The announcement complies with the Hong Kong Stock Exchange’s listing rules and will be available in both Chinese and English on the company’s and the stock exchange’s websites. The 2024 Annual Report will be distributed to H share holders and made available online in April 2025. This release is significant as it reflects the company’s financial performance and compliance with regulatory standards, potentially impacting its market position and stakeholder confidence.

ZhongAn Online Reports RMB5,029 Million in Gross Written Premiums for Early 2025

ZhongAn Online P & C Insurance Co., Ltd. reported aggregate gross written premiums of approximately RMB5,029 million for the period from January 1, 2025, to February 28, 2025. This financial data, prepared according to Chinese accounting standards, is unaudited, and stakeholders are advised to exercise caution in relying on it. The announcement may have implications for the company’s financial performance and market positioning, although specific impacts are not detailed.