The Zhitong Finance App learned that recently, CICC released a research report saying that the 2022 performance of Shuidi Company (WDH.US) is in line with expectations, and that the patient recruitment business is expected to become a new growth point. Combining various factors, it gave Shuidi a “outperform the industry” rating and raised the target price by 27% to 3.4 US dollars.
According to Shuidi's financial report for the fourth quarter and full year of 2022, the company's Q4 revenue was 679 million yuan, an increase of 12.5% over the previous year. The annual net operating income was 2,802 million yuan and net profit was 608 million yuan, turning the annual loss into a profit.
According to the CICC Research Report, Shuidi's revenue increased year-on-year in Q4 2022, which indicates that it has entered a new growth trajectory: insurance-related business revenue increased by more than 5% year on year; the share of premiums for critical illness insurance products rose to 29%; contribution revenue from the patient recruitment business increased 3683% year-on-year to 23 million yuan; and Waterdrop's fundraising business generated service fee revenue.
According to CICC Research Report, starting in the second half of 2021, Shuidi will switch its business model, reduce external investment, pay more attention to customer acquisition quality and stock customer operations. Sales and marketing expenses have been drastically reduced, and profitability has been significantly optimized.
It is worth noting that for the first time, Shuidi disclosed the revenue from its medical innovation business. In 2022, Shuidi's patient recruitment business generated 509 million yuan in revenue, and enrolled more than 2,800 patients throughout the year. According to the research report, the future patient recruitment business is expected to bring new revenue and profit growth points to Shuidi Company.
China Financial Research Report predicts that Shuidi's expense investment will increase in 2023 to seek higher growth. We will lower the 2023 EEPS by 30.4% to 0.87 yuan per share, and introduce the 2024 EPS forecast of 1.38 yuan per share; considering that the compound growth rate of net profit will increase in the next few years after the increase in the company's cost investment and that the profit growth rate in 2023 is not stable, the valuation base will be switched to 2024, raising the company's target price by 27% to 3.4 US dollars. Corresponding to 15.8x2024EP/E, the company is currently trading 14.0x2024EP/E, potentially There is room for growth of 12%. Maintain an outperforming industry rating.