China International Capital Corporation recently released a research report, covering WDH.US for the first time, giving it a "outperform industry" rating. It is expected that Shuidi will make GAAP profitable by 2023, benefiting from economies of scale and improved operating efficiency.
CICC values the water drop company in 2025 by using the Pstroke E multiple. Based on the 2025 net profit forecast of US $238 million, 25 times the valuation multiple of PCME in 2025, and the equity cost of 9.3%, the target market capitalization for 2021 is US $4.16 billion.
CICC expects the EPS of Shuidi Company from 2021 to 2023 to be-2.87 yuan,-0.59 yuan and 1.49 yuan, respectively. The forward price-to-earnings ratio discount method is used, corresponding to 25 times 2025e Pbig E and 41.3% upstream space.
China International Capital Corporation believes in the research newspaper that sales-side innovation represented by water droplets is the most valuable direction, and as the younger generation with online consumption habits grow into the main force of insurance consumption, Internet insurance brokers and agency platforms will usher in greater opportunities for development. "We expect the Internet penetration rate to reach 20% in 2030, and the insurance commission income from Internet consignment will reach 403.6 billion yuan, equivalent to eight times the scale in 2020. 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 gave Shuidi 25 times the valuation multiple of 2025 Pmax E, mainly because: the current comparable online insurance brokerage platform trading at 20 times 2021 Pmax E, the revenue and profit growth of water drop is faster than that of the comparable company; thanks to the further expansion of the company's revenue and the continued improvement in profitability, we expect the company's net profit to reach 4.85 billion yuan in 2030, corresponding to a compound growth rate of 25% for the five-year period 2026-2030.
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 believes that the water drop business model brings multi-dimensional data accumulation. Shuidi has accumulated a large number of multi-dimensional user data through multiple business sectors in the insurance protection system. By making full use of the business data and medical data accumulated in the past, a more three-dimensional user profile can be obtained under the insurance protection sector. carry out accurate marketing and reduce customer acquisition costs Under the medical and health sector, we can integrate upstream and downstream resources, provide data on diseases and user needs for pharmaceutical companies and insurance companies, and cooperate with many parties to achieve the extension and innovation of products and services.
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