Cathay Junan International: Maintaining Shuidi (WDH.US)'s “Buy” Rating and Raising the Target Price to $2.40

Zhitong Finance App learned that after Shuidi (WDH.US) released its results for the third quarter of 2025, Cathay Pacific Junan International released the latest research report, maintained the purchase rating of Shuidi (NYSE: WDH), and raised the target price to $2.40. According to the research report, Shuidi's revenue and net profit for Q3 2025 both exceeded the analyst's previous forecast, mainly due to the company's deep integration of AI technology and technological iteration. Looking ahead to the fourth quarter of 2025 and 2026, analysts at Guotai Junan International expect Shuidi's performance to continue to grow and raised the net profit forecast for 2025 and 2026.

Shuidi's financial performance in the third quarter of 2025 was strong, with net operating income of 975 million yuan and net profit of 158 million yuan to mother. Among them, insurance-related income reached 870 million yuan, an increase of 44.8% year over year, and first-year scale premiums increased 32.3% month-on-month. While revenue and profit continued to grow, the company's operating expenses (including sales expenses, management expenses, and R&D expenses) accounted for 39.6% of revenue, a year-on-year decrease of 8.3 percentage points.

According to the Guotai Junan International Research Report, Shuidi's Q3 revenue and net profit exceeded expectations, mainly reflecting the results of integrating AI technology into the company's business. 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!”