DBS: Raise Zhong'an Online's target price to HKD 24, optimistic about the potential growth space of stablecoin business

According to a report by Golden Finance, DBS released a research report stating that Zhong'an Online's underwriting profits further improved in the first half of the year, with a 9.3% increase in premiums in line with expectations, driven by medical and automotive insurance. Zhong'an Technology RD Tech, which holds 8.6% of the shares of the group, is one of the first virtual asset issuer license applicants in Hong Kong and is expected to be approved by the end of 2025. The bank believes that ZA Bank is expected to achieve breakeven by 2025, laying the foundation for a potential initial public offering. Based on the potential growth space of stablecoin business, the bank has raised its target price for Zhong'an Online from HKD 20 to HKD 24, maintaining a "buy" rating.