occurrences

Zhongan Online publishes its 2024 semi-annual report. 2024H1 achieved insurance service revenue of 15.088 billion yuan, a year-on-year increase of 19.0%; a comprehensive cost ratio of 97.9%, a year-on-year increase of 2.1PCT; and realized net profit to mother of 0.055 billion yuan, a year-on-year decrease of 75.1%.

Net profit was under pressure year on year, mainly due to the net profit of the insurance division falling year on year 1) 2024H1 achieved total premiums of 15.238 billion yuan, +5.4% year over year. Looking at the ecosystem, the company's total premiums for health, digital life, consumer finance, and automotive ecology were 4.538 billion yuan, 7.414 billion yuan, 2.184 billion yuan, and 1.102 billion yuan, respectively, -9.6%, -21.6%, and +34.0% year-on-year respectively. Among them, the car ecosystem's premium growth rate was the highest, mainly due to the year-on-year increase in automobile sales and the company's use of its Internet advantages to actively expand customers. 2024H1 China's vehicle sales were +6.1% year-on-year. 2) 2024H1 achieved net profit of 0.055 billion yuan to mother, -75.1% year-on-year, mainly due to the year-on-year increase in COR driving net profit of the insurance division -69.1% to 0.138 billion yuan year-on-year. 2024H1's COR was 97.9%, up 2.1 PCT year over year.

The company continues to advance the “insurance+technology” dual-engine strategy. The current technological results have gradually shown that the domestic and international technology export revenue of 2024H1 is 0.319 and 0.123 billion yuan respectively, +112.7% and +3.8%, respectively. Its domestic technology export revenue in China increased significantly year-on-year. The main companies seized the opportunity of the insurance industry to launch IFRS17 system solutions, which in turn led to an increase in the number of new customers. 2024H1 has signed 56 new insurance industry chain customers. In the future, as the company continues to increase its investment in technology, the enabling effect of technology on financial business is expected to continue to show, and the company's profitability is also expected to improve.

Profit Forecasts and Ratings

We expect the company's 2024-2026 insurance service revenue to be 31.7/36.5/41.5 billion yuan, with year-on-year growth rates of +15.0%/+15.4%/+13.5% respectively; net profit to mother of 0.42/0.47/0.57 billion yuan, respectively, with year-on-year growth rates of -89.6%/+11.6%/+19.5%, respectively. Since the company's COR continues to be superior to 100% and the enabling effects of technology continue to show, it is recommended to pay attention.

Risk warning: Market competition has intensified, equity market fluctuations have intensified, payouts have exceeded expectations, and technological empowerment has fallen short of expectations.