Fanhua (AIFU) AI Stock Analysis

• Market Cap: $30.38M
• Dividend Yield: N/A
• Average Volume (3M): 29.04K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.95
• 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: 2,895,264
• 10 Day Avg. Volume: 34,665
• 30 Day Avg. Volume: 29,035
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $6.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $6.50 ▲(6.38% Upside)

AIFU's overall score is driven by strong balance sheet and cash flow management, indicating financial stability. The stock's undervaluation presents an opportunity for growth, but declining revenues and operational inefficiencies are significant risks. Technical indicators suggest mixed momentum, with short-term bullish signals but potential resistance in the medium term.

Fanhua Business Overview & Revenue Model

Company Description

AIFU, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.

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, income statement weaknesses are present, with declining revenues and operational losses that need addressing.

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	188.27M	-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: Positive
• Last Price: 6.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIFU, the sentiment is Positive. The current price of 6.11 is above the 20-day moving average (MA) of 5.79, below the 50-day MA of 6.32, and below the 200-day MA of 7.58, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 47.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIFU.

Fanhua Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	72 Outperform	481.86M	14.60	12.34%	6.13%	15.28%	26.05%
AIFU	69 Neutral	$30.38M	5.55	12.00%	―	―	―
MBI	56 Neutral	398.86M	-1.70	10.33%	―	0.00%	66.83%
HIPO	55 Neutral	914.53M	-84.45	0.00%	―	43.15%	94.09%
AMBC	51 Neutral	424.58M	-30.19	-64.94%	―	-17.06%	-118.90%
JRVR	51 Neutral	254.84M	-1.81	-14.35%	0.71%	-20.88%	1.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Fanhua Corporate Events

AIFU Inc. Secures $31.6 Million in Private Placement

On July 7, 2025, AIFU Inc. announced a $31.6 million non-brokered private placement through a definitive share purchase agreement with certain investors. This transaction involves the issuance of 10,000,000 Class A ordinary shares and a warrant for up to 20,000,000 additional shares. The proceeds will support the company’s business plans and general corporate purposes. The share issuance is expected to close by the end of July 2025, potentially impacting the company’s market presence and stakeholder interests by increasing the total outstanding shares and altering shareholder distribution.