Insurer Waterdrop's Q2 net profit up 58.7%

Waterdrop

04/09/2025 11:13

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: ID:nPn4zVT1ba

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)