ZA ONLINE Shares Climb Over 4% as Diversified Ecosystems Unleash Growth; BofA Raises Profit Forecast and Target Price

Stock News04-08

ZA ONLINE (06060) rose more than 4%, with the stock up 4.15% to HK$13.3 at the time of writing, generating a turnover of HK$46.793 million. The company's 2025 performance report showed total premiums of RMB 35.735 billion, a year-on-year increase of 6.9%, maintaining its position as the eighth-largest domestic property and casualty insurer. Adjusted net profit attributable to shareholders for the full year reached RMB 1.8 billion, surging 198.3% year-on-year, marking the fifth consecutive year of underwriting profitability. Notably, property and casualty insurance remained the core profit contributor, while the technology and banking segments achieved profitability for the full year. In a recent research note, BofA Securities raised its profit forecasts for ZA ONLINE for this year and next by 5% and increased the target price from HK$15.3 to HK$16.1, equivalent to a forecast price-to-book ratio of 0.9 times, reiterating a "Buy" rating. The report stated that with a decline in the combined ratio and other costs, coupled with contributions from its Hong Kong operations, the company's profits are expected to grow to RMB 1.5 billion over the next three years, compared to RMB 1.1 billion last year.

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