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Cheche Group Inc. Class A (CCG)
:CCG
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Cheche Group
(NASDAQ:CCG)
Rating:54Neutral
Price Target:
$1.00
▲(28.21% Upside)
Positive Factors
Government Policies
Regulatory support from the Chinese government, requiring digital solutions for insurers and brokers, enhances market environment and opportunities for Cheche Group.
Partnerships
Cheche Group's partnerships with major new energy vehicle companies like Volkswagen and NIO help secure higher margins and strengthen its market position.
Profitability
Cheche Group Inc. experienced its first GAAP profitable quarter.
Negative Factors
Revenue Growth
Management reiterated guidance for net revenue growth and total written premium growth, with 4Q implied revenue growth at 28% year-over-year at the midpoint, but high expectations can lead to pressure on performance.
Stock Buyback
Management plans to authorize a stock buyback upon board approval, which might raise concerns about future cash allocation.
Cheche Group (CCG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.03M
Dividend YieldN/A
Average Volume (3M)105.20K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth105.31%
EPS Growth95.66%
CountryUS
Employees548
SectorCommunication Services
Sector Strength91
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.03
Shares Outstanding62,178,240
10 Day Avg. Volume95,172
30 Day Avg. Volume105,196
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 Cap0.99
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit1.32
Enterprise Value/Ebitda-11.92
Forecast
1Y Price Target
$1.00Price Target Upside28.21% Upside
Rating ConsensusHold
Number of Analyst Covering1
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:May 29, 2025
(Q3-2024)
| % Change Since: -2.50%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook for Cheche Group, highlighting its recent profitability, strong growth in the NEV sector, and successful expansion of partnerships. Despite some challenges related to lower commission rates and high claims ratios in NEV insurance, the company's strategic focus and cost reductions have led to substantial improvements.Q3-2024 Updates
Positive Updates
Profitable Inflection Point
Cheche achieved profitability in Q3 2024, with net income turning positive for the first time, recording RMB 4.1 million or USD 0.6 million compared to a RMB 55.4 million loss in Q3 2023.
Strong Growth in NEV Sector
NEV gross premiums grew 120% year-over-year to USD 126 million, and the number of embedded policies sold increased by 140% year-over-year to 292,000 policies.
Partnership Expansion
Cheche signed an agreement with Tokio Marine's Chinese subsidiary, marking its first collaboration with a foreign insurer and expanding service capabilities.
Reduction in Expenses
Selling and marketing expenses dropped by 53.6% to RMB 18.1 million, and general and administrative expenses decreased by 41.4% to RMB 20.4 million year-over-year.
Negative Updates
Lower NEV Insurance Commission Rates
Insurance policies on NEVs currently enjoy lower commission rates than ICEs due to reduced profitability for insurance carriers.
High Claims Ratio in NEV Insurance
NEV insurance continues to experience high claims ratios, posing challenges for profitability in this segment.
Company Guidance
During the Cheche Group's Q3 2024 earnings call, the company reaffirmed its full-year guidance, projecting net revenues between RMB 3.5 billion and RMB 3.7 billion, marking an increase of 6.1% to 12.1% compared to 2023. Total written premiums are expected to range from RMB 24.5 billion to RMB 26.5 billion, representing an 8.4% to 17.3% growth over the previous year. Cheche reported a significant milestone of achieving profitability this quarter, with net income of RMB 4.1 million, a notable turnaround from a RMB 55.4 million loss in Q3 2023. Additionally, NEV gross premiums saw a 120% increase to USD 126 million year-over-year, with embedded policies rising 140% to 200,000. These metrics reflect Cheche's strategic focus on NEV insurance, partnerships with 14 NEV manufacturers, and expansion into new markets like Southeast Asia and the Middle East.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
Negative
0.78
Price Trends
0.78
Positive
0.81
Negative
0.87
Negative
Market Momentum
<0.01
Negative
49.75
Neutral
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCG, the sentiment is Negative. The current price of 0.78 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.78, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
60 Neutral | $43.36B | 3.95 | -13.01% | 4.04% | 1.89% | -42.25% | |
58 Neutral | $78.63M | ― | -48.12% | ― | 4.11% | 78.58% | |
54 Neutral | $63.03M | ― | -16.65% | ― | 105.31% | 95.66% | |
52 Neutral | $38.30M | ― | -38.57% | ― | 17.74% | 65.18% | |
52 Neutral | $38.23M | ― | -133.94% | ― | -31.96% | 56.06% | |
50 Neutral | $174.59M | 25.25 | -75.68% | ― | -10.52% | -420.74% | |
35 Underperform | $33.29M | ― | -60.38% | ― | -28.77% | 9.06% |
* Communication Services Sector Average
Performance Comparison
CCG
Cheche Group
0.78
-0.17
-17.89%
GIFT
RDE
1.09
-2.18
-66.67%
SEAT
Vivid Seats
16.98
-76.42
-81.82%
MNY
MoneyHero Limited
1.82
0.61
50.41%
BODI
Beachbody Company
5.41
-1.66
-23.48%
PODC
Courtside Group Inc
1.45
0.07
5.07%
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.