Dahua Jixian Research Report: Maintaining the “buy” rating of Shuidi (WDH.US) and giving a target price of 2.91 US dollars

The Zhitong Finance App learned that on December 4, Dahua Jixian released the latest research report of Shuidi (WDH.US). According to the research report, Shuidi's performance for the third quarter of 2025 exceeded expectations, and net profit increased by more than 60% year on year. This was mainly due to strong premium growth and efficiency improvements brought about by AI applications. The cumulative net profit from January to September 2025 increased 55% year-on-year to 406.8 billion yuan, greatly exceeding management growth guidelines, and analysts raised the annual net profit forecast. Dahua Jixian reiterated Shuidi's “buy” rating and gave Shuidi a target price of 2.91 US dollars.

In the third quarter of 2025, Shuidi achieved net operating income of 975 million yuan and net profit of 158 million yuan, remaining profitable for the 15th consecutive quarter; operating expenses, including sales, management and R&D expenses, accounted for 39.6% of revenue, down 8.3 percentage points from the previous year. Insurance-related income reached 870 million yuan, up 44.8% year on year, and first-year scale premiums increased 32.3% month-on-month. The digital clinical trial business achieved revenue of about RMB 31.9 million this quarter, an increase of 31.3% over the previous year. Since the launch of the share repurchase program was announced in September 2021, as of November 30, 2025, Shuidi has repurchased approximately 58.1 million ADS (American Depositary Receipts) shares from the open market.

This quarter, Shuidi's net profit increased year-on-year, highlighting the results of AI-enabled business cost reduction and efficiency. Under the strategic direction of All in AI, Shuidi empowers the insurance business with an AI model, covering core aspects such as underwriting, customer service, quality inspection, product innovation, sales and marketing. AI medical insurance experts helped achieve an 82% month-on-month increase in scale premiums; AI insurance customer service “Bao Xiaohui” served more than 600,000 times per month; AI underwriting expert “KEYI.AI” simplified the underwriting workflow and could “complete responses within seconds”, turning tasks that previously required a few minutes into an almost instant process.

Shen Peng, founder and CEO of Shuidi Company, said, “In the third quarter, AI technology was the core driving force for improving business quality and efficiency, driving the company's revenue and profit to achieve rapid double-digit growth. Looking forward to the future, we will continue to seize the opportunities brought by technological evolution, promote the deep integration and application innovation of AI capabilities throughout the business chain, and inject continuous momentum into the company's high-quality development. Based on this, we will strive to achieve the long-term value of user peace of mind, win-win partnership, and shareholders' trust!”