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/Mis Actual Consensu

s s

Estimate

Q2 RMB

Operatin 837.96

g mln

Revenue

Q2 RMB

Adjusted 151.60

Net mln

Income

Q2 Net RMB

Income 140.20

mln

Q2 RMB

Operatin 97.34

g Income mln

Q2 RMB

Pretax 137.37

Profit 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:

(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.)