AMTD Research | Huize (HUIZ US) initiation report: Leading the evolution of online insurance platform to the next generation

AMTD published Huize initiation report. Huize is a next-gen online insurance service provider focusing on LT health insurance. We like Huize, because: 1) in NT, it will benefit from a booming demand from the fastest growing segment – health insurance; 2) in LT: it is scalable and able to achieve secular growth by its unique intelligent online platform. We expect Huize’s total revenue will grow to RMB2.2bn in FY22E, with a CAGR of 36.0% in FY20E/22E. We initiate Huize with Buy and derive our PT of US$10.7 by applying 5.0x FY21E P/GP, at a premium over its peers’ average of 3.8x FY21E P/GP, as Huize has a higher proportion of commission revenue.