[ET Net News Agency, 7 December 2018] Nomura initiated coverage on ZhongAn Online P & C
Insurance (06060) with a "buy" rating and a target price of HK$38.13.
The research house said Zhong An recorded premium CAGR of 96% over 2014-2017, and solid
premium growth of 107% for 1H 2018, showing strong momentum, driven by the auto, health
and consumer finance businesses, with higher margins.
In addition, Nomura expects a continued mix shift, with auto, health and consumer
finance accounting for 15%/40%/35% of total premiums by 2022. It forecast Zhong An to
achieve overall break-even by 2020, and underwriting profit for the first time in 2021.
(KL)