Fanhua (AIFU) AI Stock Analysis

• Market Cap: $68.23M
• Dividend Yield: N/A
• Average Volume (3M): 24.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 4,707
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.10
• Shares Outstanding: 13,370,271
• 10 Day Avg. Volume: 16,857
• 30 Day Avg. Volume: 24,494
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 3.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $4.00 ▲(3.09% Upside)

AIFU's overall stock score is primarily influenced by its financial performance, which shows stability in the balance sheet and cash flow but is hindered by declining revenues and operational losses. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively result in a lower overall score.

Fanhua Business Overview & Revenue Model

Company Description

Fanhua Inc. (AIFU) is a leading insurance and financial services company based in China, primarily focused on providing insurance brokerage services, asset management, and other financial solutions. The company operates in various sectors, including life insurance, health insurance, and property insurance, and offers a range of products and services designed to meet the diverse needs of individual and corporate clients. Through its extensive distribution network, Fanhua connects clients with a variety of insurance products and financial services, helping to enhance financial security and asset management.

How the Company Makes Money

Fanhua generates revenue primarily through insurance brokerage fees, which are earned when the company facilitates the sale of insurance policies to clients. This includes commissions from life, health, and property insurance products. Additionally, the company earns income from asset management services, where it manages investments for clients and receives management fees. Other revenue streams may include consulting services and partnerships with insurance providers that may offer referral bonuses or performance-based incentives. Significant partnerships with major insurance companies enhance Fanhua's product offerings and distribution capabilities, contributing to its overall earnings.

Fanhua Financial Statement Overview

Summary

Fanhua's financial performance shows strengths in balance sheet stability with a healthy equity ratio and low leverage risk. Cash flow improvements are evident with increased free cash flow. However, significant challenges exist with declining revenues and operational inefficiencies leading to a negative EBIT margin.

Income Statement

The company's gross profit margin for the latest year is approximately 38.47%, which is fairly strong, but it has been declining over the years. The net profit margin improved significantly to 25.15%. However, there's a concerning negative EBIT margin due to a reported loss, indicating operational inefficiencies. Revenue has decreased substantially by about 43.45% from the previous year, presenting a major challenge.

Balance Sheet

The company maintains a healthy equity ratio of 61.34%, showing financial stability with a strong proportion of equity in its asset base. The debt-to-equity ratio is low at 0.08, indicating low leverage risk. Return on equity has improved to 17.86%, reflecting enhanced profitability for shareholders.

Cash Flow

Operating cash flow to net income ratio is 0.31, which is moderate and suggests cash generation from core operations. Free cash flow increased by 51.39% over the previous year, showing strong cash flow management. The free cash flow to net income ratio is 0.3, indicating a balance between cash earnings and net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.20B	1.81B	3.20B	2.78B	3.27B	3.27B
Gross Profit	1.05B	695.97M	1.05B	986.01M	1.16B	1.05B
EBITDA	22.62M	-2.42M	229.88M	188.15M	320.29M	320.13M
Net Income	280.48M	454.96M	280.48M	100.27M	250.99M	268.25M
Balance Sheet
Total Assets	4.05B	4.15B	4.05B	3.09B	3.24B	3.08B
Cash, Cash Equivalents and Short-Term Investments	1.55B	821.33M	1.55B	915.28M	1.44B	1.55B
Total Debt	292.77M	206.49M	292.77M	172.17M	215.29M	189.76M
Total Liabilities	1.71B	1.52B	1.71B	1.36B	1.28B	1.13B
Stockholders Equity	2.07B	2.55B	2.07B	1.62B	1.84B	1.83B
Cash Flow
Free Cash Flow	88.79M	134.40M	88.79M	60.01M	95.41M	387.05M
Operating Cash Flow	101.79M	142.85M	101.79M	137.75M	126.20M	402.30M
Investing Cash Flow	-234.31M	-436.59M	-234.31M	-127.56M	450.40M	325.34M
Financing Cash Flow	86.18M	-64.39M	86.18M	-20.37M	-260.30M	-638.81M

Fanhua Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIFU, the sentiment is Negative. The current price of 3.88 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 5.24, and below the 200-day MA of 5.32, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIFU.

Fanhua Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	75 Outperform	$518.21M	14.44	13.12%	5.71%	13.47%	26.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TRUP	62 Neutral	$1.81B	109.73	4.49%	―	12.50%	―
AIFU	54 Neutral	$68.23M	-0.40	-1.31%	―	―	―
JRVR	51 Neutral	$244.08M	―	-6.97%	0.72%	-19.08%	56.21%
AMBC	45 Neutral	$379.57M	―	-4.09%	―	-17.06%	-118.90%
MBI	43 Neutral	$342.31M	-1.48	―	―	―	67.72%

Fanhua Corporate Events

AIFU Inc. Reports Significant Revenue Decline in H1 2025 Amid Strategic Restructuring

AIFU Inc. reported its unaudited financial results for the first half of 2025, highlighting a strategic focus on operational efficiency amidst industry challenges. The company divested non-core businesses, including its claims adjusting segment, and streamlined operations to enhance financial flexibility and position itself for future growth. For the first half of 2025, AIFU’s total net revenues decreased by 67.0% compared to the same period in 2024, primarily due to reduced demand in the life insurance sector and the impact of policy changes on commission levels. Despite these challenges, the company maintained a focus on cost reduction and efficiency improvements, although it recorded a net loss from continuing operations of RMB473.3 million.