DB:1ZO

Stock Analysis Report

ZhongAn Online P & C Insurance

Executive Summary

ZhongAn Online P & C Insurance Co., Ltd., an online Insuretech company, provides Internet insurance and information technology services in the People’s Republic of China.

Rewards

Earnings are forecast to grow 101.9% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has ZhongAn Online P & C Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1ZO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.9%

1ZO

1.9%

DE Insurance

2.0%

DE Market


1 Year Return

23.7%

1ZO

30.2%

DE Insurance

15.1%

DE Market

Return vs Industry: 1ZO underperformed the German Insurance industry which returned 29.6% over the past year.

Return vs Market: 1ZO exceeded the German Market which returned 15% over the past year.


Shareholder returns

1ZOIndustryMarket
7 Day11.9%1.9%2.0%
30 Day-2.6%5.7%1.0%
90 Day32.4%8.5%3.8%
1 Year23.7%23.7%35.9%30.2%18.6%15.1%
3 Yearn/a69.1%48.7%16.8%6.6%
5 Yearn/a103.9%63.3%23.7%6.7%

Price Volatility Vs. Market

How volatile is ZhongAn Online P & C Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ZhongAn Online P & C Insurance undervalued compared to its fair value and its price relative to the market?

2.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1ZO (€3.76) is trading above our estimate of fair value (€1.28)

Significantly Below Fair Value: 1ZO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1ZO is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: 1ZO is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1ZO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1ZO is overvalued based on its PB Ratio (2.6x) compared to the DE Insurance industry average (1.2x).


Next Steps

Future Growth

How is ZhongAn Online P & C Insurance forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

101.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1ZO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 1ZO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1ZO's is expected to become profitable in the next 3 years.

Revenue vs Market: 1ZO's revenue (29.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1ZO's revenue (29.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1ZO's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has ZhongAn Online P & C Insurance performed over the past 5 years?

-57.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1ZO is currently unprofitable.

Growing Profit Margin: 1ZO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1ZO is unprofitable, and losses have increased over the past 5 years at a rate of -57.6% per year.

Accelerating Growth: Unable to compare 1ZO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1ZO is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (7.8%).


Return on Equity

High ROE: 1ZO has a negative Return on Equity (-6.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ZhongAn Online P & C Insurance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1ZO has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1ZO's debt is covered by short term assets (assets are 4.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1ZO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 1ZO has sufficient cash runway for 2.8 years if free cash flow continues to reduce at historical rates of -32.5% each year.


Financial Institutions Analysis

Asset Level: 1ZO's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1ZO has a sufficient allowance for bad loans.

Low Risk Liabilities: 1ZO reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1ZO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1ZO has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1ZO has an appropriate level of bad loans.


Next Steps

Dividend

What is ZhongAn Online P & C Insurance's current dividend yield, its reliability and sustainability?

0.001%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Years0.001%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1ZO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1ZO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1ZO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1ZO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1ZO's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Jin Chen (50yo)

5.7yrs

Tenure

CN¥2,019,000

Compensation

Mr. Jin Chen is the Co-Owner of Shanghai Haoguan Investment Management Partnership. Mr. Chen served as Co-Chief Executive Officer at ZhongAn Online P & C Insurance Co.,Ltd. until July 18, 2019 and has been ...


CEO Compensation Analysis

Compensation vs Market: Jin's total compensation ($USD289.21K) is below average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Jin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yaping Ou
Executive Chairman of the Board6.3yrsno datano data
Jin Chen
Executive Director5.7yrsCN¥2.02mno data
Jin Yi Ou
Executive Director2.3yrsCN¥1.23mno data
Xing Jiang
GM & CEO0.6yrsno datano data
Yongbo Zhang
Deputy GM6.3yrsno datano data
Ti Wu
Vice GM & Chief Marketing Officer4.7yrsno datano data
Min Wang
Executive Deputy GM & Secretary of the Board of Directors2.5yrsno datano data
Wai Yee Wong
Joint Company Secretary0yrsno datano data

4.7yrs

Average Tenure

42yo

Average Age

Experienced Management: 1ZO's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yaping Ou
Executive Chairman of the Board6.3yrsno datano data
Jin Chen
Executive Director5.7yrsCN¥2.02mno data
Jin Yi Ou
Executive Director2.3yrsCN¥1.23mno data
Yifan Li
Independent Non-Executive Director3.2yrsCN¥125.00kno data
Hui Chen
Independent Non-Executive Director3.2yrsCN¥125.00kno data
Xiaoming Hu
Non-Executive Director6.3yrsno datano data
Xinyi Han
Non-Executive Director3.3yrsno datano data
Chi Ming Lai
Non-Executive Director6.3yrsno datano data
Shuang Zhang
Independent Non-Executive Director3.3yrsCN¥125.00kno data
Yuping Wen
Chairman of the Supervisory Committee6.3yrsno datano data

4.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 1ZO's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

ZhongAn Online P & C Insurance Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ZhongAn Online P & C Insurance Co., Ltd.
  • Ticker: 1ZO
  • Exchange: DB
  • Founded: 2013
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: HK$45.932b
  • Listing Market Cap: HK$5.458b
  • Shares outstanding: 1.47b
  • Website: https://www.zhongan.com

Number of Employees


Location

  • ZhongAn Online P & C Insurance Co., Ltd.
  • Associate Mission Building
  • 4th-5th Floors
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6060SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2017
1ZODB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2017
6060SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 2017
6060SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 2017
ZZHG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDSep 2017

Biography

ZhongAn Online P & C Insurance Co., Ltd., an online Insuretech company, provides Internet insurance and information technology services in the People’s Republic of China. The company operates through Insurance, Technology, and Others segments. It offers property and casualty insurance products covering accident, bond and credit, health, liability, cargo, household property, and motor insurance, as well as shipping return policy insurance. The company also provides technology development and consulting, IT consulting, bio technology, micro and virtual financing, and insurance broking services. ZhongAn Online P & C Insurance Co., Ltd. was founded in 2013 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:38
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.