China International Capital Corporation analysis pointed out that insurance sales innovation is the largest market space and is most likely to continue to make a profit in the direction.
China International Capital Corporation released a research report covering WDH.US for the first time, giving it an "outperform industry" rating, and expects the company to make Non-GAAP and GAAP profits by 2023. CICC also expects Shuidi's net profit margin to rise to 9.3 per cent and net profit of 1.277 billion yuan in 2025 as income continues to expand over the next five years.
China International Capital Corporation analysis pointed out that insurance sales innovation is the largest market space and is most likely to continue to make a profit in the direction. Shuidi's unique business model transmits insurance to users in need, which can greatly improve the efficiency of the insurance sales process; and then based on the management team with Internet + 's insurance vision and the strong brand effect in low-line cities, as well as the data insight and application capabilities formed by the massive data accumulation brought by the business model.
CICC expects the annual premium of Shuidi to grow by 41% in 2021 / 2022, 41% in 2021 / 2022, 29% in 2021 / 2022, and 38% in 2021 / 2022. The annual premium in 2021 / 2022 is expected to increase by 38% in 2022, and the annualized premium in 2021 / 2022 is expected to increase by 38% in 2021 / 2022. It mainly benefits from the rapid growth of the number of customers brought by the company's increase in the number of customers, as well as the improvement of the efficiency of the transformation from short-term insurance to long-term insurance. It is expected that the company's commission income will increase by 57% and 45% in 2021 / 2022, mainly driven by the increase in commission rate.
CICC expects Shuidi to make Non-GAAP and GAAP profitable by 2023, mainly driven by improved operating efficiency. Based on the 2025 net profit forecast and 25 times the valuation multiple of 2025 Pamp E, the target market capitalization for 2021 is $3.3 billion. It is expected that in the next five years, as the income scale continues to expand, Shuidi will achieve significant economies of scale and improve operating efficiency, with net profit margin rising to 9.3% and net profit reaching 1.277 billion yuan in 2025.
CICC expects the EPS of Shuidi Company from 2021 to 2023 to be-2.87 yuan,-0.59 yuan and 1.49 yuan, respectively. For the first time, it covers the rating of outperforming industries, using the forward price-to-earnings discount method, corresponding to 25x 2025e Pdeband E and 41.3% upside space.
As of press time, Shuidi rose 2% to $7.65, with a market capitalization of $2.965 billion.