Huize Holding (HUIZ) AI Stock Analysis

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Huize Holding

(NASDAQ:HUIZ)

Rating:47Neutral

Price Target:

$2.00

▼(-4.31%Downside)

Huize Holding's overall stock score is primarily impacted by its weak financial performance and concerning valuation metrics. Despite some short-term technical strength, the company's financial health issues and lack of profitability are significant concerns. The positive aspects from the earnings call, such as growth in premiums and cost optimization, were insufficient to offset the fundamental weaknesses.

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

Market Cap

$20.79M

Dividend YieldN/A

Average Volume (3M)18.59K

Price to Earnings (P/E)11.4

Beta (1Y)0.44

Revenue Growth0.48%

EPS Growth-127.19%

CountryUS

Employees1,034

SectorFinancial

Sector Strength78

IndustryInsurance - Brokers

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding8,582,664

10 Day Avg. Volume23,100

30 Day Avg. Volume18,590

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

$2.30

Price Target Upside10.05% Upside

Rating ConsensusHold

Number of Analyst Covering1

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:Jun 06, 2025

(Q1-2025)

% Change Since: 10.58%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Positive

Huize delivered strong sequential growth in premiums and significantly optimized its cost structure through AI integration. The company also expanded its customized product offerings and progressed in its international expansion strategy. However, there was a year-over-year decline in first-year premiums facilitated and an increase in selling expenses. Overall, the positive developments outweigh the challenges faced.

Q1-2025 Updates

Positive Updates

Strong Growth in Premiums

Operating revenue exceeded RMB 280 million, with gross written premiums and first-year premiums facilitated on the platform increasing 38% and 31% sequentially, reaching RMB 1.4 billion and RMB 730 million, respectively. Renewal premiums grew 46% sequentially to approximately RMB 710 million.

AI Integration and Cost Optimization

Huize accelerated the integration of AI across operations, which led to remarkable productivity improvements and a 29% sequential reduction in total operating expenses.

Expansion of Customized Insurance Products

Huize launched several new customized insurance products, such as Bliss No. 3 and Jin Man Yi Zu No.6, in response to increased demand for wealth protection solutions.

International Expansion Efforts

Huize's international brand, Poni Insurtech, showed strong growth with a 29% increase in policy count and a 35% increase in gross written premiums year-over-year. The company is making progress in expanding into Singapore and other markets.

Negative Updates

Decline in First-Year Premium (FYP)

The first-year premium facilitated in the first quarter saw around a 15% year-over-year decline, attributed to a high base effect from the previous year.

Increased Selling Expenses

Despite the decline in FYP, selling expenses increased by 7%, partly due to the lower gross margins from international business segments.

Company Guidance

During the first quarter of 2025, Huize achieved notable financial growth despite challenging macroeconomic conditions. Operating revenue surpassed RMB 280 million, with gross written premiums and first-year premiums increasing by 38% and 31% sequentially, reaching RMB 1.4 billion and RMB 730 million, respectively. Renewal premiums rose 46% to approximately RMB 710 million. Huize expanded its user base to over 11 million, adding 390,000 new clients, and maintained high persistency ratios for long-term insurance at over 95%. The company strengthened its partnerships with 143 insurance entities, launching innovative products like the Bliss No. 3 savings product and customized participating products, catering to a shift from fixed to floating returns. Huize's international arm, Poni Insurtech, showed significant growth, particularly in Vietnam, with a 35% increase in gross written premiums year-over-year. Additionally, Huize emphasized AI integration, reducing operating expenses by 29% sequentially, and enhancing customer service through AI-powered innovations, achieving automation in claims processing and launching an AI-powered smart portal to serve over 15,000 users daily.

Huize Holding Financial Statement Overview

Summary

Huize Holding faces substantial financial challenges. The income statement shows declining profitability with a negative net profit margin. The balance sheet has seen improved leverage but highlights ongoing profitability concerns with a negative ROE. The cash flow statement indicates severe cash management problems, with significant negative free cash flow. Overall, these issues reflect declining financial health.

Income Statement

Neutral

Huize Holding's income statement highlights some significant challenges. The gross profit margin has decreased from 39.02% in 2023 to 30.47% in 2024, indicating a decline in profitability. The net profit margin has turned negative at -0.52% in 2024 from a positive 5.87% in 2023, reflecting a downturn in net income. Revenue growth was modest at 4.46% from 2023 to 2024. However, EBIT and EBITDA margins also saw a decline, with the EBIT margin dropping to -1.68% in 2024. These metrics suggest profitability issues and operational inefficiencies.

Balance Sheet

Neutral

The balance sheet reveals mixed stability for Huize Holding. The debt-to-equity ratio improved to 0.22 in 2024 from 0.43 in 2023, indicating a decrease in leverage. Return on Equity (ROE) has significantly worsened, dropping to -0.16% in 2024 from 17.32% in 2023, signaling declining profitability. The equity ratio improved slightly to 46.22% in 2024 from 42.77% in 2023, showing a healthier capital structure. While leverage has decreased, the negative ROE highlights ongoing profitability concerns.

Cash Flow

Negative

Huize Holding's cash flow statement shows a worrying trend. Free cash flow has turned negative in 2024 at -23.21 million, compared to a positive 106.83 million in 2023, indicating cash flow difficulties. The operating cash flow to net income ratio is also negative in 2024, further emphasizing operational cash challenges. The free cash flow to net income ratio is alarming at -35.77 in 2024. These metrics suggest significant cash flow management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.20B	1.16B	2.25B	1.22B
Gross Profit	380.63M	466.48M	423.62M	554.26M	403.87M
EBITDA	15.31M	64.68M	-24.18M	-101.78M	-15.73M
Net Income	-649.00K	70.19M	-13.99M	-83.13M	-18.53M
Balance Sheet
Total Assets	884.20M	947.01M	1.09B	1.86B	1.34B
Cash, Cash Equivalents and Short-Term Investments	238.21M	258.14M	277.17M	381.16M	404.62M
Total Debt	90.83M	176.25M	336.11M	500.78M	350.27M
Total Liabilities	454.95M	536.59M	747.59M	1.50B	867.29M
Stockholders Equity	408.74M	405.15M	340.88M	360.06M	468.68M
Cash Flow
Free Cash Flow	-23.21M	106.83M	-101.89M	-213.98M	129.47M
Operating Cash Flow	-18.93M	137.35M	-85.07M	-175.92M	137.67M
Investing Cash Flow	-3.24M	-61.02M	-56.29M	-80.93M	-31.08M
Financing Cash Flow	23.21M	-133.56M	-101.13M	141.89M	383.05M

Huize Holding Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.09

Price Trends

50DMA

2.05

Positive

100DMA

2.51

Negative

200DMA

3.03

Negative

Market Momentum

MACD

0.01

Negative

RSI

49.03

Neutral

STOCH

29.09

Neutral

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 2.09 is above the 20-day moving average (MA) of 2.07, above the 50-day MA of 2.05, and below the 200-day MA of 3.03, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
RELI	65 Neutral	$6.63M	―	-238.61%	―	2.40%	94.65%
EHTH	59 Neutral	$126.77M	―	3.19%	―	17.04%	74.07%
ZBAO	54 Neutral	$32.15M	10.97	48.31%	―	80.80%	―
GOCO	48 Neutral	$65.02M	―	0.80%	―	13.18%	97.01%
HUIZ	47 Neutral	$20.79M	11.44	-3.92%	―	0.48%	-127.19%
TIRX	42 Neutral	$12.51M	―	-12.03%	―	158.74%	14.86%

* Financial Sector Average

Performance Comparison

HUIZ

Huize Holding

2.09

-2.91

-58.20%

EHTH

Ehealth

4.18

-0.42

-9.13%

RELI

Reliance Global Group

2.14

-2.52

-54.08%

TIRX

Tian Ruixiang Holdings

1.23

-0.96

-43.84%

GOCO

GoHealth

5.85

-4.59

-43.97%

ZBAO

Zhibao Technology Inc. Class A

1.02

-2.99

-74.56%

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.Date of analysis: Jun 28, 2025