The analyst rating for ZA ONLINE was reiterated at "Buy" due to several positive factors highlighted in the report. BofA Securities raised its earnings forecasts for 2026 and 2027 by 5% and increased the target price from $15.3 to $16.1, reflecting a projected price-to-book (PB) ratio of 0.9x. The report noted a decline in the combined ratio and other costs, alongside contributions from Hong Kong operations, which are expected to drive the company's earnings growth to RMB1.5 billion over the next three years, up from RMB1.1 billion last year. Additionally, the company's net profit for 2025 showed significant growth of 83% from a low base in 2024, with stable core business growth and a 7% year-over-year increase in premium income. The improvement in the combined ratio, particularly a decrease in the loss ratio in the lifestyle business, further supports the positive outlook.
