Bocom intl's research report pointed out that Zhongan Online (06060.HK) achieved a net profit of 55 million yuan in the first half of the year, a decrease compared to the 0.22 billion yuan in the same period last year, mainly due to a decrease in underwriting profit. Premium income in the first half of the year increased by 5.4% year-on-year, which was significantly slower than the growth rate in 2023. The growth in premiums mainly came from digital life and auto ecology. The year-on-year increase in the comprehensive cost ratio was mainly due to consumer finance and health ecology. The net loss of the technology division and the banking division narrowed significantly; investment income decreased year-on-year.

The bank maintains a "buy" rating on the company, indicating that in the face of challenging environment, the company pays more attention to underwriting quality and the growth rate of premiums has slowed down. The company pointed out that the increase in comprehensive cost ratio hinders profitability, and lowered the full-year profit forecast, with the target price lowered from 18 yuan to 15 yuan. (vc/k)

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