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Cheche Group (CCG)
NASDAQ:CCG
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Cheche Group
(NASDAQ:CCG)
Rating:61Neutral
Price Target:
$1.00
▼(-6.54% Downside)
Positive Factors
NEV Insurance Growth
The significant growth in NEV insurance policies indicates a strong market position in a rapidly expanding sector, which can drive long-term revenue and margin improvements.
AI-Driven Solutions
The introduction of AI-driven tools positions Cheche Group for enhanced operational efficiency and international expansion, potentially increasing future revenue streams.
Operational Efficiency
The reduction in operating expenses reflects improved cost management, which can enhance profitability and support sustainable financial health over time.
Negative Factors
Profitability Challenges
Ongoing profitability challenges with negative margins indicate that Cheche Group needs to improve its financial performance to achieve sustainable growth and investor confidence.
Cash Flow Issues
Persistent cash flow issues can limit the company's ability to invest in growth initiatives and may hinder its long-term financial stability.
Revenue Decline
The decline in net revenues suggests potential challenges in maintaining growth momentum, which could impact future financial performance if not addressed.
Cheche Group (CCG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.62M
Dividend YieldN/A
Average Volume (3M)461.35K
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth105.31%
EPS Growth95.66%
CountryUS
Employees548
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.04
Shares Outstanding62,178,240
10 Day Avg. Volume1,057,790
30 Day Avg. Volume461,345
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit1.32
Enterprise Value/Ebitda-11.92
Forecast
1Y Price Target
$2.00Price Target Upside86.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Cheche Group Business Overview & Revenue Model
Company DescriptionCheche Group Inc. operates an online auto insurance platform. It offers non-auto insurance products, such as non-auto P&C products, as well as non-auto insurance transaction services. The company was founded in 2014 and is headquartered in Beijing, China. Cheche Group Inc. operates as a subsidiary of Prime Impact Cayman, LLC.
How the Company Makes MoneyCheche Group generates revenue primarily through its insurance brokerage services, where it earns commissions on policies sold through its platform. Additionally, the company offers technology solutions and platforms to insurance carriers, which can involve subscription fees, licensing, and service agreements. These platforms help insurance companies streamline their operations, enhance customer engagement, and improve data management. Key partnerships with insurance carriers and other stakeholders in the insurance ecosystem play a significant role in driving Cheche Group's revenue. The company benefits from a growing demand for digital transformation in the insurance industry, which is a significant factor contributing to its earnings.
Cheche Group Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in NEV insurance policies and improved financial performance with reduced losses and higher gross margins. However, there was a notable decrease in net revenues and a revision of revenue guidance due to lower service fee rates for NEV premiums. Despite these challenges, the company remains optimistic about future growth driven by strategic initiatives and AI-driven solutions.Q2-2025 Updates
Positive Updates
Significant Growth in NEV Insurance Policies
The number of NEV insurance policies transacted on the platform exceeded 810,000, representing an increase of 135% from the prior year, with total written premiums reaching RMB 2.6 billion, up 150% over the same period.
Improved Financial Performance
Adjusted net loss for the first half of 2025 improved 47% to RMB 10 million from RMB 24 million in the prior year, with gross margins increasing due to improved business structure and operational efficiency.
Launch of AI-Driven Insurance Tools
Cheche announced the launch of AI-driven intelligent insurance tools and a fintech solution for automakers abroad, aimed at enhancing liability determination, automated claims processing, and supporting international expansion.
Stable and Controlled Operating Expenses
Total operating expenses decreased by 23.9% to RMB 92.8 million due to reductions in staff costs and share-based compensation expenses.
Negative Updates
Decrease in Net Revenues
Net revenues decreased by 17.7% year-over-year to RMB 1,348.7 million, driven by a larger proportion of NEV premiums with lower service fee rates.
Revised Revenue Guidance
Cheche revised its net revenue guidance for the full year of 2025 to a range of RMB 3 billion to RMB 3.3 billion from the previously announced range of RMB 3.6 billion to RMB 3.8 billion.
Company Guidance
During the Cheche Group's earnings call for the first half of 2025, the company highlighted several key metrics and strategic initiatives. The number of NEV (New Energy Vehicle) insurance policies transacted on their platform surged by 135% to over 810,000, with total written premiums reaching RMB 2.6 billion, a 150% increase compared to the previous year. The NEV business has maintained a compound annual growth rate of 140% over the past three years. NEV premiums now constitute 22.5% of the total written premiums, up from 9.3% the prior year, contributing to improved gross margins. The adjusted net loss improved by 47% to RMB 10 million (USD 1.5 million) from RMB 24 million the previous year, and the company is on track to achieve full-year adjusted operating profitability. Cheche aims to capture 30-40% of China’s NEV market within the next 3 to 5 years. The company also introduced new AI-driven insurance tools and a fintech solution for global automakers, targeting future revenue contributions of RMB 300 million to RMB 500 million from AI-driven solutions and services. Cheche's initiatives are set to bolster its global expansion, starting in Q4 2025, with plans to leverage its leadership in China's NEV insurance sector for international growth.Cheche Group Financial Statement Overview
Summary
Cheche Group is showing signs of improvement in revenue and margin growth, although it still faces profitability and cash flow challenges. The balance sheet is stable with manageable debt levels, indicating potential for recovery. The company needs to focus on improving cash flow and moving towards positive net income to enhance financial health.Income Statement
Cheche Group has shown revenue growth with a 5.2% increase in 2024 compared to 2023. The gross profit margin improved slightly to 4.6% in 2024. However, the company is still operating at a loss with a negative net profit margin of -1.8% and negative EBIT and EBITDA margins. The trend shows a reduction in net loss, indicating a move towards profitability.60
Neutral
Balance Sheet
The company's balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.10 in 2024, showing effective debt management. However, the equity ratio remains moderate at 27.6%. The company has a strong cash position, but the negative net equity in past years indicates past financial struggles that are being addressed.55
Neutral
Cash Flow
Cheche Group's cash flow statement highlights significant challenges with negative free cash flow and operating cash flow. The free cash flow growth rate is negative, indicating cash flow issues. However, the operating cash flow to net income ratio suggests the company is gradually improving operational efficiency, albeit still negative.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 773.93M | 3.47B | 3.30B | 2.68B | 1.74B |
| Gross Profit | 47.06M | 158.76M | 140.22M | 142.31M | 80.81M |
| EBITDA | -5.22M | -52.20M | -146.95M | -76.83M | -125.61M |
| Net Income | -2.14M | -61.24M | -159.59M | -91.02M | -146.46M |
Balance Sheet | |||||
| Total Assets | 712.50M | 1.29B | 893.98M | 712.50M | 868.56M |
| Cash, Cash Equivalents and Short-Term Investments | 149.77M | 152.90M | 264.87M | 149.77M | 426.14M |
| Total Debt | 13.90M | 35.17M | 29.35M | 13.90M | 36.67M |
| Total Liabilities | 1.97B | 932.17M | 515.79M | 1.97B | 1.87B |
| Stockholders Equity | -1.26B | 355.75M | 378.18M | -1.26B | -1.01B |
Cash Flow | |||||
| Free Cash Flow | ― | -115.80M | -27.50M | -160.10M | -189.22M |
| Operating Cash Flow | ― | -114.14M | -26.95M | -158.86M | -187.59M |
| Investing Cash Flow | ― | -15.60M | 12.82M | 27.69M | -65.33M |
| Financing Cash Flow | ― | 1.95M | 140.34M | -159.04M | 583.67M |
Cheche Group Technical Analysis
Positive
1.07
Price Trends
0.84
Positive
0.83
Positive
0.87
Positive
Market Momentum
0.08
Negative
62.65
Neutral
49.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCG, the sentiment is Positive. The current price of 1.07 is above the 20-day moving average (MA) of 0.94, above the 50-day MA of 0.84, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.65 is Neutral, neither overbought nor oversold. The STOCH value of 49.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCG.
Cheche Group Risk Analysis
Cheche Group disclosed 85 risk factors in its most recent earnings report. Cheche Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cheche Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $85.62M | ― | -16.65% | ― | 105.31% | 95.66% | |
60 Neutral | $47.40B | 4.51 | -11.27% | 4.14% | 2.83% | -41.62% | |
56 Neutral | $88.57M | ― | -48.12% | ― | 4.11% | 78.58% | |
54 Neutral | $178.19M | 25.25 | -75.68% | ― | -10.52% | -420.74% | |
52 Neutral | $48.07M | ― | -38.57% | ― | 17.74% | 65.18% | |
52 Neutral | $45.58M | ― | -133.94% | ― | -31.96% | 56.06% | |
35 Underperform | $32.65M | ― | -60.38% | ― | -28.77% | 9.06% |
* Communication Services Sector Average
Performance Comparison
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Cheche Group
1.07
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37.18%
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MNY
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2.05
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93.40%
BODI
Beachbody Company
6.45
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PODC
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1.82
0.17
10.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.