ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) Full-Year Results: Here's What Analysts Are Forecasting For This Year

ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) just released its full-year report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.8% to hit CN¥34b. Statutory earnings per share (EPS) came in at CN¥0.41, some 3.7% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for ZhongAn Online P & C Insurance from eleven analysts is for revenues of CN¥35.6b in 2025. If met, it would imply an okay 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 71% to CN¥0.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥36.3b and earnings per share (EPS) of CN¥0.74 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for ZhongAn Online P & C Insurance

The consensus price target held steady at HK$16.12, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ZhongAn Online P & C Insurance analyst has a price target of HK$20.83 per share, while the most pessimistic values it at HK$12.17. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ZhongAn Online P & C Insurance shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that ZhongAn Online P & C Insurance's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. Even after the forecast slowdown in growth, it seems obvious that ZhongAn Online P & C Insurance is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ZhongAn Online P & C Insurance. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on ZhongAn Online P & C Insurance. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ZhongAn Online P & C Insurance going out to 2027, and you can see them free on our platform here..

Even so, be aware that ZhongAn Online P & C Insurance is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.