UBS Raises ZhongAn Online Target Price to HK$22.3 to Reflect Its Long-Term Stablecoin/Cryptocurrency Opportunities

According to a report by Jinse Finance, UBS has released a research note stating that ZhongAn Online’s net profit after tax for the first half of the year increased elevenfold year-on-year to 668 million RMB, reaching 68% of the market’s full-year earnings forecast. The combined cost ratio improved by 2.3 percentage points compared to the same period last year, dropping to 95.6%, which may exceed market expectations. The banking business has moved out of loss, prompting UBS to raise ZhongAn Online’s target price from HKD 13.1 to HKD 22.3 to reflect long-term opportunities in stablecoins/cryptocurrencies, favorable stock market policies, and rolling valuations.