Huize Holding (HUIZ) AI Stock Analysis

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Huize Holding

(NASDAQ:HUIZ)

Rating:48Neutral

Price Target:―

Huize Holding's overall stock score reflects significant financial and technical challenges. Declining profitability, negative cash flow, and concerning technical indicators weigh heavily. The earnings call provided some optimism with strong growth and strategic initiatives in AI and international markets, but regulatory risks and increased expenses temper the outlook.

Huize Holding (HUIZ) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$20.28M

Dividend YieldN/A

Average Volume (3M)45.00K

Price to Earnings (P/E)11.4

Beta (1Y)0.51

Revenue Growth2.63%

EPS Growth-101.10%

CountryUS

Employees1,034

SectorFinancial

Sector Strength83

IndustryInsurance - Brokers

Share Statistics

EPS (TTM)<0.01

Shares Outstanding8,582,664

10 Day Avg. Volume6,267

30 Day Avg. Volume45,001

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.02

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.20

Price Target Upside258.21% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Huize Holding Business Overview & Revenue Model

Company DescriptionHuize 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 MoneyHuize Holding generates revenue primarily through commissions and fees from the sales of insurance products offered on its platform. The company partners with various insurance providers to offer a diverse array of products, earning a commission for each policy sold. Additionally, Huize may receive service fees for providing value-added services such as risk management and insurance consulting. Strategic partnerships with insurance companies help Huize expand its product offerings and optimize pricing models, contributing significantly to its earnings.

Huize Holding Earnings Call Summary

Earnings Call Date:Mar 24, 2025

(Q4-2024)

% Change Since: -37.19%|

Next Earnings Date:Jun 06, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive outlook with strong revenue and premium growth, successful international expansion, and effective integration of AI technologies. However, regulatory challenges and increased expenses posed some concerns.

Q4-2024 Updates

Positive Updates

Revenue and Premium Growth

Total revenue increased by 4.5% year-over-year to RMB1.25 billion. Gross written premiums (GWP) amounted to RMB6.16 billion, up by 6% year-over-year. Full-year first-year premiums (FYP) reached RMB3.42 billion, up by 31% year-over-year.

Product Portfolio Expansion

Whole-life premiums surged by 76% year-over-year to RMB1.84 billion. Short-term insurance business recorded robust growth, with premiums up 23% year-over-year.

Customer Base Growth

Cumulative number of insurance users increased to 10.6 million, with 380,000 new users added during the quarter.

International Expansion Success

International revenue contribution reached 18%, with a target of 30% by 2026. Poni Insurtech completed the acquisition of Vietnam's leading digital insurtech platform, Global Care, which saw a 32% sequential increase in total policies.

AI Integration and Efficiency

Launched an intelligent client services system and the Feng Tung Underwriting Risk Control Engine System, both enhancing operational efficiency and risk management.

Negative Updates

Regulatory Challenges

Impact of commission caps regulation felt across the brokerage channels, affecting market competition and requiring adaptation.

Expense Increase

Significant year-over-year growth in selling and G&A expenses due to restructuring and AI investments, impacting short-term profitability.

Company Guidance

During Huize's fourth quarter and full-year 2024 earnings call, significant metrics and guidance were discussed in detail. The company reported a 4.5% year-over-year increase in total revenue, reaching RMB1.25 billion. Gross written premiums (GWP) and first-year premiums (FYP) facilitated on their platform achieved record highs, with GWP at RMB6.16 billion, up 6% year-over-year, and FYP at RMB3.42 billion, up 31% year-over-year. Whole-life premiums surged 76% year-over-year, contributing RMB1.84 billion to FYP, while long-term health insurance rose 2%, contributing RMB520 million. Their short-term insurance business also saw robust growth, with premiums up 23% year-over-year to approximately RMB515 million. The company maintained strong persistency ratios for long-term insurance, with 13-month and 25-month persistency ratios both exceeding 95%. Additionally, their international arm, Poni Insurtech, contributed significantly, with international revenue reaching RMB228.7 million, accounting for 18% of total revenue and setting a target for 30% by 2026. The company also emphasized its strategic focus on AI, launching an AI-powered app that improved customer acquisition effectiveness with an activation rate exceeding 40% and plans to expand its AI-driven services in Southeast Asian markets. Looking ahead to 2025, Huize aims to continue its growth trajectory, leveraging AI and international expansion to further enhance its competitive position and deliver sustainable value.

Huize Holding Financial Statement Overview

Summary

Huize Holding has demonstrated a commendable financial recovery with improvements across the income statement, balance sheet, and cash flow. The income statement shows enhanced profitability and cost control, while the balance sheet reflects a stable capital structure with manageable debt levels. Cash flow performance is particularly strong, with significant improvements in operating cash flow and free cash flow generation.

Income Statement

Positive

Huize Holding shows strong profitability improvements with a gross profit margin of 39.0% and a net profit margin of 5.9% for 2023, indicating efficient cost management. The company has reversed its EBIT and EBITDA from negative to positive, showing operational improvements. Revenue growth from 2022 to 2023 is modest at 3.2%, but marked a significant recovery from previous declines.

Balance Sheet

Positive

The balance sheet reflects a healthy debt-to-equity ratio of 0.43, suggesting manageable leverage. Return on equity improved to 17.3%, indicating enhanced profitability for shareholders. The equity ratio is 42.8%, reflecting a stable capital structure. However, total assets have decreased since 2021, which may limit growth potential.

Cash Flow

Very Positive

Huize Holding exhibits robust cash flow performance, with operating cash flow improving significantly. The free cash flow growth rate is highly positive, shifting from a negative base. Operating cash flow to net income ratio is strong at 1.96, indicating effective cash generation relative to earnings. The company successfully transformed its free cash flow position into positive territory.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
1.20B	1.20B	1.16B	2.25B	1.22B	993.32M
	Gross Profit
381.16M	466.48M	423.62M	554.26M	403.87M	361.95M
	EBIT
9.89M	51.04M	-43.67M	-114.41M	-25.91M	-3.22M
	EBITDA
14.76M	64.68M	-24.18M	-101.78M	-15.73M	559.00K
	Net Income Common Stockholders
20.20M	70.19M	-13.99M	-83.13M	-18.53M	14.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.26M	258.14M	277.17M	381.16M	404.62M	88.14M
	Total Assets
0.00	947.01M	1.09B	1.86B	1.34B	508.81M
	Total Debt
0.00	176.25M	336.11M	500.78M	350.27M	36.88M
	Net Debt
12.26M	-73.01M	58.94M	119.62M	-54.35M	-51.26M
	Total Liabilities
0.00	536.59M	747.59M	1.50B	867.29M	817.46M
	Stockholders Equity
-18.14M	405.15M	340.88M	360.06M	468.68M	-308.65M
Cash Flow		Free Cash Flow
0.00	106.83M	-101.89M	-213.98M	129.47M	111.99M
	Operating Cash Flow
0.00	137.35M	-85.07M	-175.92M	137.67M	118.02M
	Investing Cash Flow
0.00	-61.02M	-56.29M	-80.93M	-31.08M	-6.93M
	Financing Cash Flow
0.00	-133.56M	-101.13M	141.89M	383.05M	-14.08M

Huize Holding Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.01

Price Trends

50DMA

2.10

Negative

100DMA

2.67

Negative

200DMA

3.19

Negative

Market Momentum

MACD

-0.05

Positive

RSI

36.60

Neutral

STOCH

17.23

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUIZ, the sentiment is Negative. The current price of 2.01 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 2.10, and below the 200-day MA of 3.19, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.60 is Neutral, neither overbought nor oversold. The STOCH value of 17.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUIZ.

Huize Holding Risk Analysis

Huize Holding disclosed 97 risk factors in its most recent earnings report. Huize Holding 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 2 New Risks

We are subject to the changes, interpretation and enforcement of laws and regulations in mainland China. Q4, 2023

We have limited history and experience operating in jurisdictions outside of China. If we are unable to manage the risks presented by our potential international expansion plan, our business, financial condition and results of operations will be adversely impacted. Q4, 2023

Huize Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
EHTH	59 Neutral	$132.53M	―	3.19%	―	17.04%	74.07%
RELI	53 Neutral	$4.02M	―	-238.61%	―	2.40%	94.65%
ZBAO	52 Neutral	$31.84M	10.91	48.31%	―	80.80%	―
TIRX	52 Neutral	$14.75M	―	-12.03%	―	158.74%	14.86%
GOCO	48 Neutral	$65.13M	―	0.80%	―	13.18%	97.01%
HUIZ	48 Neutral	$20.28M	11.44	-0.10%	―	2.63%	-101.10%

* Financial Sector Average

Performance Comparison

HUIZ

Huize Holding

1.89

-3.16

-62.57%

EHTH

Ehealth

4.24

-0.98

-18.77%

RELI

Reliance Global Group

1.51

-2.57

-62.99%

TIRX

Tian Ruixiang Holdings

1.28

-1.28

-50.00%

GOCO

GoHealth

5.76

-4.13

-41.76%

ZBAO

Zhibao Technology Inc. Class A

0.98

-3.29

-77.05%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.