Dahua Jixian: Maintain Shuidi (WDH.US)'s “buy” rating and raise the target price to $2.23

The Zhitong Finance App learned that Dahua Jixian recently released a research report indicating that Shuidi (WDH.US) had steady performance in the second quarter of 2026, and that revenue and profit growth momentum continued. Based on the increase in profit forecasts, Dahua Jixian maintained Shuidi's “buy” rating and raised the target price to $2.23.

According to research reports, Shuidi achieved net profit of 126 million yuan to mother in the second quarter of 2026. In terms of revenue, net revenue for the second quarter reached 1,448 billion yuan, an increase of 72.8% year-on-year. Among them, the income of the insurance sector increased by 80.5% year on year, and long-term insurance premiums for the first year increased by 33.4% month-on-month. Digital clinical trial solution revenue increased 26.8% year over year.

Dahua Jixian emphasized in the research report that Shuidi's deep deployment of AI technology has become the core engine driving growth and improving efficiency. Management pointed out that the premium contribution of “AI medical insurance experts” increased 25.6% month-on-month in the second quarter, thanks to AI-driven demand insight and continuous optimization of transformation tools. Looking forward to the future, Shuidi positions AI as an engine of company-wide growth and efficiency. It is expected that AI-related investment will continue to increase, while maintaining a reasonable ratio of R&D expenses to revenue.

In terms of product innovation, with the accumulation of massive claims data and insight into user needs, Water Drop Insurance has broken the traditional static logic of refusing “one-size-fits-all” insurance for slow patients, making it possible for sick users to apply for insurance. This quarter, Shuidi launched the industry's first long-term critical illness product “Easy Insurance” with a 5-year guarantee renewal, which covers more than 100 major illnesses and can be subject to accidental death and disability liability. At the same time, it expanded the “Jixing Gaozhao” series product matrix and added the industry's first lifetime specific illness insurance without health notice.

Shen Peng, founder and CEO of Shuidi, said, “Shuidi has always regarded technology as the core engine of the company's development. Currently, AI capabilities are deeply embedded in various business platforms, enabling us to more accurately grasp the growing market demand in existing businesses and consolidate and enhance competitive barriers. In the future, we will continue to strengthen technological and AI capacity building, steadily advance business expansion, maintain strategic investment, and create long-term and sustainable value for shareholders.”