科技：2024H1 众安科技输出国内及国际业务共实现收入4.42 亿元，同比+64.6%，其中国内科技输出业务实现收入3.19 亿元，同比+112.7%，主要由财险核心系统、智能营销、数据智能等产品促进新客户的增长及客户单价的提高所带动；国外科技输出业务实现收入1.23 亿元，同比+3.8%，归因于公司把握全球保险行业数字化转型机遇，积极布局海外，并不断参与、协助推动中国企业全球化布局。Overall: 2024H1 achieved income from insurance services of 15.09 billion yuan, +18.9% year on year; realized net profit of 0.055 billion yuan to mother, -75% year over year, mainly due to reduced investment losses and underwriting profit.
Insurance: 2024H1 Zhongan Online achieved a total premium of 15.238 billion yuan, +5.4% over the same period last year. Driven by some businesses and affected by increased payout rates, underwriting profit decreased by 0.2 billion yuan year-on-year. Looking at ecology:
1) Health ecology achieved premiums of 4.538 billion yuan, -9.6% compared with the same period last year. The comprehensive cost rate was +3.1 pct to 57.6% year over year, mainly due to an increase in customer service infrastructure investment in operation and maintenance, so COR was +3.2 pct to 95.7% year over year. 2) The digital lifestyle ecosystem benefited from the booming development of the e-commerce industry and the rapid growth of innovative products, including pet insurance, etc., and achieved premiums of 7.414 billion yuan, or +27.0% compared to the same period last year. Furthermore, although the digital lifestyle ecosystem payout rate was +3.3 pct to 71.7% year over year, the comprehensive cost ratio -3.2 pct to 28.2% offset the impact and COR remained stable. 3) The consumer finance ecosystem is affected by the uncertainty of the macro environment. The company adopted a prudent risk control strategy and actively reduced the business scale. The premium ratio was -21.6% to 2.184 billion yuan. Furthermore, asset quality risk increased in the first half of the year, and the payout rate was +13 pct to 73.8% year over year, dragging down underwriting profit. 2024H1 COR was 99.1%, and +8.4 pct year over year. 4) The automobile ecosystem benefited from the company seizing the opportunity of rising industry prosperity, and relied on the advantages of its Internet channel to actively launch related products such as driving accident insurance and travel accident insurance, achieving premiums of 1.102 billion yuan, or +34.0% over the same period last year. Furthermore, through refined operation management and integrated reporting and cost control, the company drastically reduced the comprehensive cost rate of the automobile ecosystem, which was -10.7% to 27.5% compared with the same period, driving COR -3.1 pct to 94.2%.
Technology: 2024H1 Zhongan Technology's domestic and international business achieved a total revenue of 0.442 billion yuan, +64.6% year over year. Its technology export business in China achieved revenue of 0.319 billion yuan, +112.7% year over year, mainly driven by financial insurance core systems, intelligent marketing, data intelligence and other products promoting the growth of new customers and the increase in customer unit prices; the foreign technology export business achieved revenue of 0.123 billion yuan, +3.8% year over year, due to the company seizing digital transformation opportunities in the global insurance industry. Actively expand overseas, and continue to participate and assist in promoting the global layout of Chinese enterprises.
Bank: 2024H1 ZA Bank achieved net revenue of HK$0.255 billion, with non-interest income accounting for 18.4% of total revenue. At the same time, by focusing on business quality and improving operating efficiency, ZA Bank reduced net loss by nearly HK$0.1 billion to HK$0.109 billion, and the loss rate narrowed by 71.7 pct to 42.9% year over year. We expect future losses to continue to narrow.
Investment: Compared with the end of 2023, Zhongan Online's investment assets were -1.33% to 37.7 billion yuan, mainly fixed income assets, accounting for 75.4% of total investment assets, achieving a total return on investment of 0.62 billion yuan, -14.2% over the same period, a total return on investment -0.7 pct to 3.3%, and a net return on investment +0.1 pct to 2.3%, which is expected to be mainly due to continued decline in interest rates and increased fluctuations in the equity market.
Investment advice: We believe that Zhongan can use multiple ecological layouts and self-operated channels to enhance channel customer acquisition capabilities and user stickiness. At the same time, the technology business is developing strongly, which is expected to contribute to long-term profit growth. However, considering the poor performance of part of the 2024H1 underwriting side ecosystem and future capital market fluctuations, we lowered the company's 2024-2026 net profit to 0.24/0.37/0.62 billion yuan, -94.1%/+53.4%/+68.3% year-on-year, maintaining a “buy” rating.
Risk warning: The company's claims and expenses fell short of expectations; the equity market fluctuated greatly; changes in the international situation exceeded expectations.
