GUOTAI JUNAN I: Raise the target price of WaterDrop Company to $1.8, maintain "buy" rating.

After Waterdrop, Inc. ADR Class A (WDH.US) released its first quarter performance for 2025, GUOTAI JUNAN I issued a research report on June 20, raising the target price for Waterdrop, Inc. ADR Class A to $1.8 and maintaining a "buy" rating. In the first quarter of 2025, both the revenue and profit of Waterdrop, Inc. ADR Class A exceeded expectations. GUOTAI JUNAN I also raised its profit forecast for Waterdrop, Inc. ADR Class A for 2025 to reflect the improvement in profitability due to the company's operational efficiency. The research report by GUOTAI JUNAN I pointed out that Waterdrop, Inc. ADR Class A exhibited strong financial performance in the first quarter of 2025, with a net profit attributable to the parent company of 108 million yuan, a year-on-year increase of 34.2%; insurance-related revenue of 658 million yuan, a year-on-year increase of 8.4%, mainly driven by growth in insurance brokerage revenue. The founder and CEO of Waterdrop, Inc. ADR Class A, Shen Peng, emphasized that being user-centric and employing AI applications strategically are key drivers of the company's growth. Currently, approximately 475 million users have donated around 68.8 billion yuan to approximately 3.47 million patients through Waterdrop, Inc. ADR Class A, with a total of 11,217 patients enrolled in digital clinical trials. Looking ahead, Waterdrop, Inc. ADR Class A will continue its growth trajectory through product innovation and the application of AI large models. As one of the first companies in the industry to focus on AI large models, Waterdrop, Inc. ADR Class A has been committed to technology-driven initiatives since its establishment, investing nearly 300 million yuan in research and development annually, applying for 51 patents related to large models, and building a comprehensive application system covering all insurance scenarios. Leveraging its independently developed insurance large model, Waterdrop, Inc. ADR Class A has achieved intelligent upgrades in customer acquisition, sales assistance, customer operations, and risk control. Continued research and development investment will strengthen AI-driven refined operations and enhance operational leverage and sales conversion efficiency. This quarter, Waterdrop, Inc. ADR Class A's AI applications have continued to empower and improve efficiency in various business areas. The "AI Quality Inspection Assistant" has improved quality management efficiency by 83% through the inference capabilities of AI large models. Additionally, the "Waterdrop, Inc. ADR Class A Water Guardian AI Insurance Expert" business has significantly improved efficiency, contributing over 2 million yuan in premium assistance in a single month in telephone service scenarios. In customer service, "AI Customer Service" covers multiple insurance customer service scenarios including policy inquiries, policy management, and product Q&A, providing timely responses to user inquiries 24/7 with an average problem resolution rate of 52%.