Insurer Waterdrop's Q2 net profit up 58.7%
Overview
Waterdrop Q2 net profit rises 58.7% yr/yr to RMB140.2 mln
Insurance premiums grow 80.2% yr/yr, boosting net revenue by 23.9%
Co announces US$10.9 mln cash dividend, 50% increase over previous
Outlook
Company to extend KEYI.AI availability to partners later this year
Waterdrop aims for top-line and bottom-line growth in H2 2025
Company emphasizes tech-driven innovation as core strategy
Result Drivers
AI INTEGRATION - Co attributes strong revenue and profit growth to AI-enhanced sales and service processes, including AI Medical Insurance Expert and AI Customer Service Agent
INSURANCE PREMIUMS - Insurance business sees 80.2% yr/yr growth in first-year premiums, driving revenue and operating profit increases
CROWDFUNDING PLATFORM - Upgraded risk assessment capabilities on Waterdrop Medical Crowdfunding platform enhance service quality
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Operating Revenue | RMB 837.96 mln | ||
Q2 Adjusted Net Income | RMB 151.60 mln | ||
Q2 Net Income | RMB 140.20 mln | ||
Q2 Operating Income | RMB 97.34 mln | ||
Q2 Pretax Profit | RMB 137.37 mln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline insurance & brokers peer group is "buy."
Wall Street's median 12-month price target for Waterdrop Inc is $1.80, about 1.1% above its September 3 closing price of $1.78
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release:
