SEHK:6060

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.

Snowflake

Fundamentals

Limited growth 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


Market Performance


7 Day Return

23.1%

6060

4.9%

HK Insurance

3.3%

HK Market


1 Year Return

-18.1%

6060

17.9%

HK Insurance

1.6%

HK Market

Return vs Industry: 6060 underperformed the Hong Kong Insurance industry which returned 17.9% over the past year.

Return vs Market: 6060 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

6060IndustryMarket
7 Day23.1%4.9%3.3%
30 Day17.0%-0.08%-0.009%
90 Day21.1%-6.1%-5.1%
1 Year-18.1%-18.1%20.2%17.9%5.3%1.6%
3 Yearn/a52.3%44.1%16.1%4.4%
5 Yearn/a75.2%60.3%20.4%0.3%

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

Valuation

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

1.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 6060 (HK$23) is trading above our estimate of fair value (HK$0.34)

Significantly Undervalued: 6060 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6060 is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: 6060 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 6060's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6060 is overvalued based on its PB Ratio (2x) compared to the HK Insurance industry average (1x).


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 11 analysts?

104.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6060 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 6060 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 6060 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 6060's revenue (29% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 6060's revenue (29% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6060'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


Past Earnings Growth Analysis

Earnings Trend: 6060 is unprofitable, and losses have increased over the past 5 years at a rate of -57.6% per year.

Accelerating Growth: Unable to compare 6060's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6060 is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (2.7%).


Return on Equity

High ROE: 6060 has a negative Return on Equity (-6.62%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 6060 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 6060 is currently unprofitable, so its Return on Capital Employed is negative.


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: 6060 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6060's debt is covered by short term assets (assets are 4.920120x 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: 6060 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 6060 has sufficient cash runway for 2.813455 years if free cash flow continues to reduce at historical rates of -78.7% each year.


Financial Institutions Analysis

Asset Level: 6060's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 6060 has a sufficient allowance for bad loans.

Low Risk Liabilities: 6060 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 6060 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6060 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 6060 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?

0.032%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage1.8%forecastin3Years0.03%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 6060's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6060's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 6060's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6060'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 6060's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of ZhongAn Online P & C Insurance's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Jin Chen (50yo)

5.3yrs

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: Insufficient data to establish whether Jin's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

3.8yrs

Average Tenure

42yo

Average Age

Experienced Management: 6060's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

48yo

Average Age

Experienced Board: 6060's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Yaping Ou (57yo)

    Executive Chairman of the Board

    • Tenure: 5.9yrs
  • Jin Chen (50yo)

    Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥2.02m
  • Hugo Ou (27yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥1.23m
  • Xing Jiang (42yo)

    GM & CEO

    • Tenure: 0.3yrs
  • Ti Wu (42yo)

    Vice GM & Chief Marketing Officer

    • Tenure: 4.3yrs
  • Yongbo Zhang (41yo)

    Vice GM

    • Tenure: 5.9yrs
  • Min Wang (34yo)

    Executive Deputy GM & Secretary of the Board of Directors

    • Tenure: 2.2yrs
  • Mingyu Ma (46yo)

    Assistant GM & Chief Risk Management Officer

    • Tenure: 3.3yrs
  • Ella Wong

    Joint Company Secretary

    • Tenure: 0yrs

Board Members

  • Yaping Ou (57yo)

    Executive Chairman of the Board

    • Tenure: 5.9yrs
  • Hui Chen (52yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥125.00k
  • Simon Hu (49yo)

    Non-Executive Director

    • Tenure: 5.9yrs
  • Xinyi Han (42yo)

    Non-Executive Director

    • Tenure: 2.9yrs
  • Guoping Wang (55yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥63.00k
  • Jimmy Lai (46yo)

    Non-Executive Director

    • Tenure: 5.9yrs
  • Jin Chen (50yo)

    Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥2.02m
  • Hugo Ou (27yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥1.23m
  • Shuang Zhang (47yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥125.00k
  • Yuping Wen (38yo)

    Chairman of the Supervisory Committee

    • Tenure: 5.9yrs

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: 6060
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: HK$31.234b
  • 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 Insur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:56
End of Day Share Price2019/10/17 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.