Insurance and healthcare company Waterdrop's Q3 revenue up 38.4%, net profit rises 60.1%

Waterdrop's Q3 revenue increased by 38.4% year-over-year to RMB 974.9 million, while net profit rose by 60.1% to RMB 158.5 million. The company repurchased 58.1 million ADSs, indicating confidence in its strategy. Innovations in insurance products and AI enhancements contributed to growth. Analysts rate the stock as a 'buy' with a 12-month price target of $1.90. The stock trades at 19 times the next 12-month earnings.

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Overview

Waterdrop Q3 operating revenue rises 38.4% yr/yr to RMB974.9 mln
Net profit for Q3 grows 60.1% yr/yr to RMB158.5 mln
Company repurchased 58.1 mln ADSs, showing confidence in business strategy

Outlook

Company expects AI to drive business momentum and service improvements

Result Drivers

INSURANCE PRODUCT INNOVATION - Introduction of Quan Jia Fu Family Protection Plan and upgraded Guo Min Bao Medical Insurance contributed to revenue growth
AI ENHANCEMENTS - Deployment of AI tools like AI Medical Insurance Expert and KEYI.AI underwriting assistant improved efficiency and increased premiums
CROWDFUNDING RISK CONTROL - Enhanced campaign risk control measures improved fraud detection and transparency in fund distribution

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 RMB

Operatin 974.86

g mln

Revenue

Q3 RMB

Adjusted 167.70

Net mln

Income

Q3 Net RMB

Income 158.50

mln

Q3 RMB

Operatin 113.77

g Income mln

Q3 RMB

Pretax 168.10

Profit mln

Analyst Coverage

The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 3 “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 Waterdrop Inc is $1.90, about 1.6% above its December 2 closing price of $1.87
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)