Huize Holding (HUIZ) AI Stock Analysis

• Market Cap: $34.40M
• Dividend Yield: N/A
• Average Volume (3M): 500.03K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.56
• Revenue Growth: 19.30%
• EPS Growth: -17.56%
• Country: US
• Employees: 1,034
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): <0.01
• Shares Outstanding: 8,582,664
• 10 Day Avg. Volume: 171,481
• 30 Day Avg. Volume: 500,026
• 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: -0.10
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: >-0.01
• Enterprise Value/Ebitda: 0.18
• 1Y Price Target: $3.50
• Price Target Upside: 2.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $3.50 ▲(2.64% Upside)

Huize Holding's overall stock score reflects a mix of financial challenges and positive operational developments. The most significant factor is the company's financial performance, which shows declining profitability and cash flow issues. However, the positive earnings call, indicating strong growth and efficiency improvements, provides a counterbalance. Technical analysis supports a moderately bullish outlook, while valuation remains reasonable. Regulatory and macroeconomic challenges are notable risks.

Huize Holding Business Overview & Revenue Model

Company Description

Huize Holding Limited, together with its subsidiaries, offers insurance brokerage services in the People's Republic of China. The company provides life and health insurance products, such as critical illness, illness and disease, and term and whole life insurance products; and property and casualty insurance products, including travel, individual casualty, and corporate liability insurance products. It offers its products through internet and mobile internet channels. The company also provides digital and technology development, and Internet information consulting services; and management, marketing, investment, and financial consulting services. Huize Holding Limited was founded in 2006 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Huize Holding generates revenue primarily through commissions and brokerage fees from insurance companies for policies sold via its platform. The company partners with a variety of insurance providers, allowing it to offer numerous products to its customers. Revenue is largely driven by the volume of insurance premiums underwritten through its platform. Huize also earns through value-added services, such as assisting insurance companies in product design, marketing, and other operational aspects, thereby enhancing its revenue streams. The company's earnings are significantly influenced by its technological capabilities, customer acquisition strategies, and the expanding digital insurance market in China.

Huize Holding Financial Statement Overview

Summary

Huize Holding faces significant financial challenges. The income statement shows declining profitability and efficiency, with a negative net profit margin and reduced gross profit margin. The balance sheet indicates improved leverage but continued profitability issues, as seen in the negative ROE. The cash flow statement highlights severe cash management problems, with negative free cash flow and concerning cash flow ratios.

Income Statement

Huize Holding's income statement highlights some significant challenges. The gross profit margin has decreased from 39.02% in 2023 to 30.47% in 2024, indicating a decline in profitability. The net profit margin has turned negative at -0.52% in 2024 from a positive 5.87% in 2023, reflecting a downturn in net income. Revenue growth was modest at 4.46% from 2023 to 2024. However, EBIT and EBITDA margins also saw a decline, with the EBIT margin dropping to -1.68% in 2024. These metrics suggest profitability issues and operational inefficiencies.

Balance Sheet

The balance sheet reveals mixed stability for Huize Holding. The debt-to-equity ratio improved to 0.22 in 2024 from 0.43 in 2023, indicating a decrease in leverage. Return on Equity (ROE) has significantly worsened, dropping to -0.16% in 2024 from 17.32% in 2023, signaling declining profitability. The equity ratio improved slightly to 46.22% in 2024 from 42.77% in 2023, showing a healthier capital structure. While leverage has decreased, the negative ROE highlights ongoing profitability concerns.

Cash Flow

Huize Holding's cash flow statement shows a worrying trend. Free cash flow has turned negative in 2024 at -23.21 million, compared to a positive 106.83 million in 2023, indicating cash flow difficulties. The operating cash flow to net income ratio is also negative in 2024, further emphasizing operational cash challenges. The free cash flow to net income ratio is alarming at -35.77 in 2024. These metrics suggest significant cash flow management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.20B	1.16B	2.25B	1.22B
Gross Profit	380.63M	466.48M	423.62M	554.26M	403.87M
EBITDA	15.31M	64.68M	-24.18M	-101.78M	-15.73M
Net Income	-649.00K	70.19M	-13.99M	-83.13M	-18.53M
Balance Sheet
Total Assets	884.20M	947.01M	1.09B	1.86B	1.34B
Cash, Cash Equivalents and Short-Term Investments	238.21M	258.14M	277.17M	381.16M	404.62M
Total Debt	90.83M	176.25M	336.11M	500.78M	350.27M
Total Liabilities	454.95M	536.59M	747.59M	1.50B	867.29M
Stockholders Equity	408.74M	405.15M	340.88M	360.06M	468.68M
Cash Flow
Free Cash Flow	-23.21M	106.83M	-101.89M	-213.98M	129.47M
Operating Cash Flow	-18.93M	137.35M	-85.07M	-175.92M	137.67M
Investing Cash Flow	-3.24M	-61.02M	-56.29M	-80.93M	-31.08M
Financing Cash Flow	23.21M	-133.56M	-101.13M	141.89M	383.05M

Huize Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUIZ, the sentiment is Positive. The current price of 3.41 is above the 20-day moving average (MA) of 3.11, above the 50-day MA of 2.71, and above the 200-day MA of 2.69, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 42.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUIZ.

Huize Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUIZ	63 Neutral	$34.40M	13.68	4.56%	―	19.30%	-17.56%
ZBAO	54 Neutral	$32.47M	11.08	―	―	80.80%	―
EHTH	52 Neutral	$120.40M	-11.68	4.33%	―	16.19%	89.75%
GOCO	45 Neutral	$72.43M	-1.24	-13.77%	―	17.46%	60.17%
RELI	42 Neutral	$4.03M	-0.31	-302.66%	―	1.07%	96.67%
TIRX	41 Neutral	$52.08M	-3.64	-11.76%	―	624.24%	85.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Huize Holding Corporate Events

Huize Holding Reports Strong Q2 2025 Financial Growth and AI Advancements

Huize Holding Limited announced its unaudited financial results for the second quarter of 2025, reporting significant growth in key financial metrics. The company achieved a 73.1% increase in first-year premiums and a 34.4% rise in gross written premiums year-over-year, driven by a high-quality customer base and diverse insurance offerings. Total revenue grew by 40.2% to RMB396.7 million, while the expense-to-income ratio improved significantly due to cost optimization and AI deployment, resulting in a GAAP net profit of RMB10.9 million. The company also expanded its client base to 11.4 million and partnered with 146 insurers. Huize’s strategic focus on AI has led to enhanced operational efficiency and a 50% increase in self-directed policy purchases, positioning it strongly in the insurance technology market.