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: 50 Neutral
• Price Target: $2.50 ▼(-10.07% Downside)

The overall stock score of 50 reflects a mixed financial performance with strong balance sheet and cash flow management, but significant weaknesses in revenue and operational efficiency. Technical analysis indicates a bearish trend, and valuation metrics are poor with a negative P/E ratio.

Positive Factors

Balance Sheet Stability

A strong equity ratio and low debt-to-equity ratio indicate financial stability, reducing leverage risk and providing a solid foundation for future growth.

Cash Flow Management

Improved free cash flow demonstrates effective cash management, enhancing the company's ability to invest in growth opportunities and weather financial challenges.

Operational Restructuring

Strategic divestitures and operational streamlining can improve efficiency and focus, potentially leading to better long-term profitability and competitive positioning.

Negative Factors

Revenue Decline

Significant revenue decline poses a challenge to growth and sustainability, necessitating strategic adjustments to stabilize and reverse the trend.

Operational Inefficiencies

Operational inefficiencies leading to negative EBIT margins highlight the need for cost control and process improvements to enhance profitability.

Industry Challenges

Industry-specific challenges, such as declining demand and regulatory changes, can affect revenue streams and require strategic adaptation to maintain market position.

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 through multiple streams, primarily by selling various insurance products, including life and property insurance policies. The company earns premiums from policyholders, which serve as a significant portion of its revenue. In addition to insurance premiums, Fanhua also derives income from investment income generated through the management of premiums that are invested in financial markets. The company has established partnerships with various insurance providers and financial institutions, allowing it to offer a wider range of products and services. Additionally, Fanhua leverages technology to improve operational efficiency and customer engagement, which contributes positively to its overall financial performance.

Fanhua Financial Statement Overview

Summary

Fanhua's financial performance presents a mixed picture with strengths in balance sheet stability and cash flow improvements. However, income statement weaknesses are evident with declining revenues and operational losses. The company must address revenue contraction and operational inefficiencies to sustain long-term growth.

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	175.32M	-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	228.95M	202.97M
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: 2.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.78 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 4.27, and below the 200-day MA of 4.94, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 32.93 is Neutral, neither overbought nor oversold. The STOCH value of 23.48 is Neutral, 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	80 Outperform	$472.74M	13.17	13.12%	4.22%	13.47%	26.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TRUP	64 Neutral	$1.60B	103.59	4.49%	―	12.50%	―
JRVR	61 Neutral	$273.50M	―	-6.97%	0.67%	-19.08%	56.21%
AIFU	50 Neutral	$68.23M	-0.40	-1.31%	―	―	―
MBI	49 Neutral	$342.31M	-1.48	―	―	―	67.72%
AMBC	48 Neutral	―	―	-4.14%	―	-37.46%	-117.36%

Fanhua Corporate Events

AIFU Inc. Announces Share Issuance Agreement with Expansion Group

On November 7, 2025, AIFU Inc. entered into a share subscription agreement with Expansion Group Ltd. to issue 5,000,000 Class B ordinary shares at a price of US$0.4 per share, totaling US$2,000,000. The proceeds will be used for general working capital purposes. The issuance is expected to be completed by the end of December 2025, subject to customary closing conditions. Following the issuance, Expansion will hold 23.96% of the total issued shares and 65.50% of the voting power of the company. The Class B shares carry significant voting rights but have limitations on economic rights and transferability.

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.