ZhongAn Online P&C Insurance Co Ltd Ordinary Shares - Class H
06060: XHKG (HKG)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| HKD 72.00 | Dcmmc | Hqntwnkl |
We Expect ZA's Shift to Profit Margin From Volume to Support Future Earnings Growth
Business Strategy and Outlook
ZhongAn Insurance is the largest online-only insurer in China. The company has enjoyed industry-leading growth despite tightened regulations and the disruption of covid in the past few years. We expect future growth to moderate but remain at above-peer level, as a result of its strategic shift to profitability from volume. This, together with favorable product mix shift and fast-growing low-cost proprietary channel, should support a decent earnings growth in our view.