Overview

* Huize ( HUIZ ) Q2 revenue grows 40.2% to RMB 396.7 mln ($55.4 mln), driven by increased first-year premiums

* Company reports Q2 net profit of RMB 10.9 mln, reversing last year's net loss

* First-year premiums surge 73.1% yr/yr, boosting overall business performance

Outlook

* Company focuses on AI integration to enhance efficiency and service quality

Result Drivers

* PREMIUM GROWTH - First-year premiums increased by 73.1% yr/yr to RMB1,127.9 mln, driven by high-quality customer base and diverse product offerings

* EFFICIENCY GAINS - Expense-to-income ratio improved significantly to 23.9% from 40.5% yr/yr, attributed to cost-optimization initiatives and AI deployment

* AI STRATEGY - AI-powered tools enhanced efficiency, contributing to a 50% yr/yr increase in self-directed policy purchases

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 RMB 7.60

Adjusted mln

Net

Income

Q2 Net RMB

Income 10.90

mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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 Huize Holding Ltd ( HUIZ ) is $3.50, about 19.1% above its September 11 closing price of $2.83

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

(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.)