[ET Net News Agency, 19 February 2021] J.P. Morgan maintained its target price for
ZhongAn Online P&C Insurance (06060) unchanged at HK$36 but downgraded its rating to
"underweight" from "neutral" after a 95% year-to-date rally.
The research house forecasted ZA Online's growth profile to be below 30% in 2021-22
(versus 80% on average in 2017-18). Also, considering the capital-light business model,
higher acquisition costs may delay its underwriting improvement.
JPM said the stock has surged 35% in the past week following strong trading momentum and
a positive profit alert announced on 8 February. It thinks the earnings turnaround was
driven mostly by investments, with a strong equity market performance. (KL)