10 Chinese Penny Stocks to Buy According to Analysts

6. Waterdrop Inc. (NYSE:WDH)

Share Price (As of December 17): $1.15

Analysts Upside: 38.61%

Waterdrop Inc. (NYSE:WDH) is a leading technology company mainly engaged in running an independent third-party insurance platform focused on insurance and healthcare services. Waterdrop’s primary business operations include the insurance marketplace, medical crowdfunding, and mutual aid.

Waterdrop Inc. (NYSE:WDH) continues to improve its insurance and crowdfunding business. During the third quarter of 2024, the company’s insurance business first-year premiums (FYP) increased by nearly 15% quarter-over-quarter and maintained an operating profit margin above 20%. Even though the company’s insurance-related income declined by 2% year-over-year, WDH’s net profit attributable to ordinary shareholders soared by nearly 153% from a year ago.

In Q3 2024, the company’s growth was mainly driven by user acquisition and innovative tailor-made products. Furthermore, the company’s AI consultant has recorded notable progress, with the ability to generate over 1 million yuan in monthly premiums by serving user inquiries. The company’s crowdfunding coverage is another key segment and during Q3, over 466 million people used Waterdrop Medical Crowdfunding to donate an aggregate of RMB 66.3 billion to 3.32 million patients.

Waterdrop Inc.’s (NYSE:WDH) growth has helped in improving its cash position. By the end of Q3 2024, the company had RMB 3.44 billion, which includes cash and cash equivalents, short-term investments, and long-term debt investments.