CICC: Maintains "outperform" rating on ZA ONLINE (06060), raises target price to HK$16.

CICC releases research report, maintaining "outperform industry" rating for ZA ONLINE (06060), raising target price by 6.7% to HK$16. The bank stated that it is maintaining the forecast for 2025 net profit attributable to shareholders and introducing a forecast of 1.26 billion yuan for 2026. ZA ONLINE will disclose its full-year performance for 2024 on March 19, with expectations for the company's composite cost rate (CoR) to decrease by 0.7 percentage points year-on-year to 97.8%. Adjusted net profit (excluding one-time investment income in 2023) is expected to increase by 76% to 510 million yuan. The profit recovery potential for 2025 is still considerable, and attention should be paid to the trend of its healthy ecological development.