Gelonghui, July 28 丨 According to the Daimo Development Research Report, due to the low valuation and strong growth prospects of Zhongan Online (6060.HK), the bank raised the company's rating from “on par with the general market” to “increase holdings”, and gave the target price of HK$36 (80% room for increase from the current price of 20.3), a price-earnings ratio of 2.5 times FY2023. It is expected that Zhongan's EPS for fiscal year 22/23/24 was HK$0.8/HK$1.1/HK$1.4 per share, and the BVPS was HK$12.1/HK$13.2/HK$14.6 respectively, which is 2.5 times the price-earnings ratio for fiscal year 2023. Daimo is optimistic about the insurance technology industry. The bank says that Zhongan Online is the first and largest internet insurance company in China. It is a leader in many niche property insurance markets, and has successfully used its data analysis capabilities to increase sales, reduce costs, and improve efficiency. Zhongan has invested heavily in R&D and is expanding its business to become a provider of insurance technology and services to the outside world. Despite the company's net loss in the first half of '22, we think this trend may reverse in the second half of '22, and premium growth is expected to improve. Daimo believes that the fundamentals of Zhongan Online are still stable. The bank expects that strengthened underwriting will lead to double-digit growth in underwriting revenue in the second half of the year, and an improvement in the comprehensive cost ratio (CoR). The bank said that thanks to the expansion of scale and improved business structure, the Zhongan Property and Casualty Insurance (P&C) sector was able to recover in the second half of '22 and maintain strong growth in 2023-24. In addition, innovative products such as pet insurance are rapidly seizing market share, and platforms such as Douyin and Kuaishou have also brought advantages to the company.