Fanhua (AIFU) AI Stock Analysis

• Market Cap: $253.20M
• Dividend Yield: N/A
• Average Volume (3M): 24.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 4,707
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 116,014,110
• 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: 0.21
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $2.50 ▲(4.60% Upside)

Overall score reflects stable balance sheet and improving cash flow, but is pulled down by sharp revenue contraction and operating losses, with additional pressure from bearish technical momentum and limited valuation support due to a negative P/E and no dividend yield data.

Positive Factors

Strong balance sheet

High equity ratio and minimal leverage provide durable financial resilience, allowing the company to absorb revenue shocks, maintain regulatory capital in insurance operations, and fund strategic initiatives without relying on costly debt, supporting stability over the next several months.

Improving free cash flow

A sizeable rise in free cash flow signals stronger internal cash generation, which supports ongoing operations, working capital needs, and discretionary investments (including acquisitions). This reduces dependence on external financing and underpins medium-term strategic flexibility.

Strategic diversification via Nova Lumina

Buying Nova Lumina materially diversifies AIFU into consumer health/wellness and tangible inventory, creating new revenue channels and potential cross-selling with its tech-enabled platform. This structural shift can broaden earnings sources and reduce concentration risk in insurance.

Negative Factors

Sharp revenue contraction

A sustained large top-line decline erodes scale economics, weakens premium flows and fee income, and compresses the firm's ability to invest in distribution and technology. Without a clear recovery, long-term growth prospects and margin recovery remain constrained.

Operating losses / negative EBIT

A negative EBIT margin indicates core operations are loss-making, suggesting structural margin pressures or cost inefficiencies. Persistent operating losses undermine sustainable profitability and risk consuming cash reserves or forcing strategic cost cuts that could hamper growth.

Governance and dilution risks

Large share issuances and a dual-class structure concentrate economic stakes while splitting voting rights, raising governance risk. Entrenched control and recent dilution can limit minority influence, complicate alignment on strategy or future capital raises, and increase agency risk long term.

Fanhua Business Overview & Revenue Model

Company Description

Fanhua (AIFU) is a leading insurance and financial services provider in China, specializing in a range of products including life insurance, property insurance, and asset management services. The company operates primarily within the insurance sector, catering to individual and corporate clients by offering tailored insurance solutions and investment opportunities. Fanhua is also involved in technology integration to enhance customer experience and streamline service delivery.

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

Mixed fundamentals: strong balance sheet (61.34% equity ratio, low 0.08 debt-to-equity) and improving cash flow (free cash flow up 51.39%), but materially weakened income statement with ~43.45% revenue decline and negative EBIT margin indicating operating inefficiencies.

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: 2.39
• 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 2.39 is below the 20-day moving average (MA) of 2.52, below the 50-day MA of 2.76, and below the 200-day MA of 4.33, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 29.81 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	$489.67M	13.64	13.12%	4.20%	13.47%	26.15%
TRUP	69 Neutral	$1.38B	89.73	4.49%	―	12.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JRVR	60 Neutral	$308.43M	-3.23	-6.97%	0.63%	-19.08%	56.21%
AIFU	56 Neutral	$253.20M	-0.19	-1.31%	―	―	―
MBI	45 Neutral	$323.16M	-1.79	―	―	―	67.72%

Fanhua Corporate Events

AIFU Closes Nova Lumina Acquisition, Adds 4,000 Tons of Premium Dark Tea Inventory

On January 9, 2026, AIFU Inc. completed the share issuance associated with its previously announced acquisition of Nova Lumina Limited, securing 100% of the equity in the company, which holds a substantial premium inventory of dark tea. Under a December 12, 2025 agreement, AIFU paid for the deal with 102,578,839 newly issued Class A ordinary shares valued at US$1 per share and a US$22 million cash component payable within 360 days of closing, with 96,526,648 shares issued to YS Management Company Limited and 6,052,191 shares to Ethereal Group Ltd, and YS’s shares locked up for five years. Following the transaction, AIFU’s share count rose to 123,514,110 ordinary shares, with YS holding about 78.2% of outstanding equity but only 11.2% of voting power and Ethereal holding about 4.9% of equity and 0.7% of voting power, reflecting a dual-class structure. The Nova acquisition brings approximately 4,000 metric tons of premium dark tea inventory, giving AIFU a significant foothold in the growing health and wellness market and marking a strategic diversification that links its AI-enabled financial services platform with a large, tangible asset base in specialty tea.

The most recent analyst rating on (AIFU) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Fanhua stock, see the AIFU Stock Forecast page.

AIFU Inc. Reshapes Audit Oversight With New Independent Director Appointment

On December 26, 2025, AIFU Inc.’s board of directors received the immediate resignation of independent director Jiaxing Shi, who also served as chair of the audit committee and a member of the compensation and corporate governance and nominating committees; the company said her departure was for personal reasons and not due to any disagreement over its operations, policies or practices. To fill the resulting vacancies, the board on the same day appointed Kunlin Li as an independent director and chair of the audit committee, as well as a member of the compensation and corporate governance and nominating committees, noting his six-plus years of accounting and finance experience, current role overseeing private equity fund finances at Beijing Yingu Pusi Investment Management, and his qualification under Nasdaq rules as an independent director and “audit committee financial expert,” which helps AIFU maintain regulatory compliance and continuity in board oversight.

The most recent analyst rating on (AIFU) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Fanhua stock, see the AIFU Stock Forecast page.

AIFU Inc. Completes US$2 Million Class B Share Issuance to Expansion Group

On December 22, 2025, AIFU Inc. completed a previously announced issuance of 5,000,000 Class B ordinary shares to Expansion Group Ltd. at US$0.40 per share, raising US$2 million in gross proceeds, which the company plans to use for general working capital. Following the transaction, AIFU’s share capital increased to 20,935,271 ordinary shares outstanding, with Expansion holding 5,000,250 shares in total and controlling approximately 23.88% of the equity but about 65.49% of the company’s aggregate voting power, significantly reinforcing Expansion’s influence over corporate decisions and highlighting the governance implications of AIFU’s dual-class share structure for existing shareholders.

The most recent analyst rating on (AIFU) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Fanhua stock, see the AIFU Stock Forecast page.

AIFU Inc. Acquires Nova Lumina to Expand in Health Sector

On December 12, 2025, AIFU Inc., a company listed on NASDAQ, entered into a transaction agreement to acquire Nova Lumina Limited from its shareholders, YS Management Company Limited and Ethereal Group Ltd. The acquisition involves the transfer of 100% equity interest in Nova, with the consideration comprising 102,578,839 Class A ordinary shares of AIFU and a cash payment of $22 million. This strategic acquisition, expected to close in January 2026, positions AIFU in the health and wellness consumer sector by adding Nova’s premium tea inventory to its assets, enhancing its market presence and long-term value potential.

The most recent analyst rating on (AIFU) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Fanhua stock, see the AIFU Stock Forecast page.

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.

The most recent analyst rating on (AIFU) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Fanhua stock, see the AIFU Stock Forecast page.