Overview

• Huize Q2 revenue grows 40.2% to RMB 396.7 mln ($55.4 mln), driven by increased first-year premiums

• Company reports Q2 net profit of RMB 10.9 mln, reversing last year's net loss

• First-year premiums surge 73.1% yr/yr, boosting overall business performance

Outlook

• Company focuses on AI integration to enhance efficiency and service quality

Result Drivers

• PREMIUM GROWTH - First-year premiums increased by 73.1% yr/yr to RMB1,127.9 mln, driven by high-quality customer base and diverse product offerings

• EFFICIENCY GAINS - Expense-to-income ratio improved significantly to 23.9% from 40.5% yr/yr, attributed to cost-optimization initiatives and AI deployment

• AI STRATEGY - AI-powered tools enhanced efficiency, contributing to a 50% yr/yr increase in self-directed policy purchases

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "buy"

• Wall Street's median 12-month price target for Huize Holding Ltd is $3.50, about 19.1% above its September 11 closing price of $2.83

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNX2bSXQy

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)