{I-bank focus}JPM upgrades ZA Online (06060) to HK$32

    J.P. Morgan lifted its target price for ZhongAn Online P&C Insurance (06060) to HK$32 from HK$23 and upgraded its rating to "overweight" from "neutral".
  The research house said it is more confident about the company refocusing on the capital-light business model expansion outlook (i.e, health, e-commerce). It also sees the company's consumer finance-related balance sheet risks gradually receding. Lastly, JPM expects product mix changes to open up faster underwriting turnaround potential with a below-100% combined ratio in 2020.
  JPM forecast earnings to reach RMB2.7bn. It revised the combined ratio forecast to 110%/99%/95% from 115%/104%/99% in FY2019/20/21 following the product mix optimization. It expects the net loss to narrow to Rmb62mn in FY2019 and the company to deliver a positive net profit of RMB1.2bn/2bn in FY2020/2021.