Cai Jing Wang·2025-09-17 10:14Core Insights - Waterdrop Inc. (NYSE: WDH) reported strong financial performance for Q2 2025, leading Guotai Junan International to raise its target price to $2.35 and maintain a "Buy" rating [1][3] - The company has improved its profit outlook for 2025 to 2027, reflecting enhanced earnings and robust growth momentum [1][3] Financial Performance - In Q2 2025, Waterdrop's net profit attributable to shareholders reached 140 million yuan, a year-on-year increase of 58.7% [3] - Insurance-related revenue was 739 million yuan, up 28.7% year-on-year, with first-year premium income at 3.204 billion yuan, marking an 80.2% increase [3] - Operating expenses, including sales, management, and R&D costs, accounted for 38.7% of revenue, a decrease of 6.4 percentage points year-on-year [3] Strategic Initiatives - The company's growth is driven by a user-centric approach and AI application strategy, as stated by founder and CEO Shen Peng [3] - Waterdrop's AI risk control model has been implemented across 15 high-risk fundraising scenarios, significantly improving risk identification accuracy [3] - The AI customer service tool "Bao Xiaohui" provides 24/7 support, achieving 100% coverage of online service requests [3] Future Outlook - Waterdrop plans to sustain its growth momentum through product innovation and the application of AI models [3] - The recent launch of the industry's first AI underwriting expert "KEYI.AI" has reduced the average processing time for complex health insurance underwriting by 80%, with an accuracy rate of 99.8% [3] - "KEYI.AI" will also be made available to industry partners, further enhancing the AI integration in the insurance product chain [3]