Huize Holding Limited (HUIZ) Q2 2025 Earnings Call Transcript
Total Revenue RMB 400 million, a 3-year quarterly high, up 40% year-over-year. The increase was driven by efficient omnichannel distribution, high-quality customer acquisition, and advanced AI solutions.
Net Profit RMB 10.9 million (GAAP net profit approximately RMB 11 million and non-GAAP net profit approximately RMB 8 million). This marks a return to profitability, supported by operational efficiency and AI-driven cost savings.
Gross Written Premiums (GWP) RMB 1.8 billion, up 34% year-over-year. Growth attributed to a strong omnichannel distribution network and focus on long-term insurance products.
First Year Premiums (FYP) RMB 1.13 billion, up 73% year-over-year. Growth driven by long-term savings products, which more than doubled year-over-year to RMB 864 million.
Short-term Insurance GWP RMB 140 million, up 19% year-over-year. Growth attributed to a diversified suite of insurance solutions.
Average First Year Premium Ticket Size for Long-term Products RMB 7,600, up 87% year-over-year. Growth reflects a focus on premium product sales.
Expense-to-Revenue Ratio 23.9%, improved by 16.6 percentage points year-over-year. Improvement driven by AI-driven automation and cost savings.
Operating Expenses RMB 95 million, decreased 17% year-over-year. Reduction due to productivity gains from AI-driven automation.
Cash and Cash Equivalents RMB 239 million as of the end of the second quarter. Reflects a robust financial position.
Persistency Ratios (13th and 25th month) Above 95% as of the end of May. Indicates strong customer retention and satisfaction.
Vietnam Subsidiary (Global Care) GWP and Revenue Both increased by 32% year-over-year. Growth driven by new merchant partnerships and advanced technological capabilities.
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Huize Holding Adjusts Reporting Schedule to Focus on Long-Term Strategy
- Reporting Schedule Change: Huize Holding's Board of Directors has approved a shift to a semi-annual and annual financial reporting schedule, with the next financial results expected in March 2026, enabling management to focus more on executing long-term strategic goals.
- Operating Metrics Disclosure: In line with the new reporting schedule, Huize disclosed selected operating metrics for Q3 2025, revealing first-year premiums of RMB 1.93 billion, a 42.3% increase year-over-year, indicating strong growth momentum in the market.
- Customer Growth: The company acquired 1.1 million new customers in the first nine months of 2025, a 24.5% increase from 2024, demonstrating the effectiveness of Huize's strategies in attracting new clients and solidifying its market position.
- Improved Persistency Ratios: Huize's 13-month persistency ratio stands at 97.8%, up 0.6 percentage points from the previous year, reflecting increased customer loyalty to its insurance products, which supports the company's goal of sustainable long-term value creation.
Huize Holding Limited - Price Target for Depositary Receipt (HUIZ) Raised by 22.86% to 4.39
Price Target Update: The average one-year price target for Huize Holding Limited has been revised to $4.39 per share, reflecting a 22.86% increase from the previous estimate of $3.57. The new target range is between $3.94 and $4.94 per share.
Fund Sentiment: There are currently 5 funds reporting positions in Huize Holding, marking a 25% increase in ownership over the last quarter. However, total shares owned by institutions have decreased by 48.14% to 44,000 shares.
Shareholder Activity: Susquehanna International Group reduced its holdings from 36,000 to 28,000 shares, while UBS Group significantly decreased its shares from 46,000 to 12,000, a drop of 93.03%. Fidelity Nasdaq Composite Index Fund maintained its 2,000 shares.
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