[ET Net News Agency, 7 July 2020] Guotai Junan International raised its target price
for ZhongAn Online (06060) to HK$58.03 from HK$30.66 and maintained its "accumulate"
rating.
Following the company's positive profit alert, the research house noted that ZhongAn has
reduced businesses with a high combined ratio since 1H 2019. The positive effects should
be released in 1H 2020.
Given increased demand triggered by the pandemic, the health ecosystem should maintain
robust premium growth in 1H. Regarding the consumer finance ecosystem, Guotai Junan thinks
that credit insurance should see notable premiums decline in 1H. Credit insurance has been
impacted by a sluggish economy since 2H 2019. The increase in credit defaults has led to a
higher loss ratio. The COVID-19 pandemic has worsened the situation since businesses have
been shut during February and March 2020. Hence, ZhongAn should actively reduce premiums
scale in the consumer finance ecosystem in 1H 2020. (KL)
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06060 ZA ONLINE
Nominal 
13.120 +1.000 (+8.251%) Research Report
07/07/2020 17:40
Guotai Junan raises ZhongAn Online (06060) to HK$58.03
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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