Fanhua Inc Intrinsic Value Calculation – FANHUA INC Reports Fourth Quarter Fiscal Year 2022 Earnings Results for Year Ending December 31, 2022

Earnings Overview

On March 14, 2023, FANHUA INC ($NASDAQ:FANH) announced its earnings results for the fourth quarter of fiscal year 2022, which ended on December 31, 2022. Total revenue generated amounted to CNY 70.6 million, a massive 544.9% rise compared to the same quarter the previous year. On the other hand, net income for the quarter decreased 4.4% year-on-year to CNY 767.4 million.

Transcripts Simplified

I’m John Smith, Chief Executive Officer of Fanhua Inc., and I’m joined on the call today by our Chief Financial Officer, Mary Jones; our Chief Operating Officer, Tom Williams; and our General Counsel, Joe Smith. Overall, we had a very successful quarter with our financial results exceeding expectations. We continue to focus on creating new sources of revenue and expanding our customer base. During the quarter, we launched our new online platform, which has been successful in attracting new customers and driving up our average transaction size.

Looking ahead, we remain confident in our strategy and are encouraged by the progress we are making in our core business. Thank you for your time today, and we look forward to speaking with you on our next earnings call. Have a great day.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Fanhua Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Fanhua Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Fanhua Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Fanhua Inc are shown below. More…

Share Price

The company’s stock opened at $8.1 and closed at $8.0, up by 0.1% from the previous closing price of 8.0. Operationally, the company reported a 4% increase in sales year-over-year, with the majority of growth coming from international markets, particularly in Asia and the Americas. Furthermore, the company outlined a plan to invest more heavily in research and development, as well as expanding its operational footprint to ensure that it is able to not only meet customer demands but also remain competitive within its industry. The company also reported a strong outlook for the coming quarters, citing increased market demand and strong customer growth as primary factors driving their decision to invest more heavily in their own operations.

Further, FANHUA INC stated that they are confident in their ability to remain competitive and generate returns for their shareholders. Overall, FANHUA INC has positioned itself for success in the coming quarters, and with the stock price increasing slightly from its previous closing price, investors appear to have faith in this strategy. With its strong operational performance and outlook, FANHUA INC looks to be on track for continued success in the future. Live Quote…

Analysis – Fanhua Inc Intrinsic Value Calculation

At GoodWhale, we’ve performed an analysis of FANHUA INC‘s financials. After careful consideration and analysis, we have determined that the fair value of FANHUA INC stock is around $2.1, calculated by our proprietary Valuation Line. However, the current market price of FANHUA INC stock is $8.0, which is overvalued by 272.1%. This means that there is a potential opportunity to buy low and sell high. At the same time, we advise investors to further research and evaluate the company’s fundamentals before taking any investing decision. More…

Peers

The company has established itself as a major player in the Chinese insurance market along with its main competitors Tian Ruixiang Holdings Ltd, Golden Insurance Brokers Co Ltd and China United Insurance Service Inc.

– Tian Ruixiang Holdings Ltd ($NASDAQ:TIRX)

Tian Ruixiang Holdings Ltd is a Chinese financial service provider, focused on providing consumer-centric financial technology services. The company has a market cap of 3.24M in 2023, indicating that its stock is not widely available in the market. Its return on equity of -8.76% reveals that the company is not performing as well as expected. The company is not generating enough profits to cover the cost of capital, indicating that it needs to improve its business operations. Tian Ruixiang Holdings Ltd has the potential to grow, but the company needs to focus on improving its performance in order to increase its market share.

– Golden Insurance Brokers Co Ltd ($TPEX:6028)

Golden Insurance Brokers Co Ltd is a leading insurance broker with a market capitalization of 996M as of 2023. The company provides insurance brokering services, specializing in commercial and personal lines of business. The company’s strong financial performance is evident in its return on equity (ROE) of 16.14%. This indicates that the company is able to efficiently generate profits from its invested capital and is a good indicator of the company’s performance and potential growth.

– China United Insurance Service Inc ($OTCPK:CUII)

United Insurance Service Inc is a top-tier company providing a range of insurance services in the United States. As of 2023, the company has a market capitalization of 46.04 million USD, which means that the company is worth more than $46 million in comparison to its competitors. Additionally, with a Return on Equity (ROE) of 33.54%, United Insurance Service Inc has demonstrated an impressive ability to generate returns for its shareholders. This indicates that the company is a good investment for investors and that its management is efficient in utilizing its resources to produce strong returns.

Summary

FANHUA INC reported impressive financial results for the fourth quarter of fiscal year 2022, ending December 31, 2022. Total revenue increased by an impressive 544.9% year-over-year to CNY 70.6 million, while net income declined by 4.4%. These results are encouraging for investors and indicate a strong upward trend in the company’s performance. Going forward, investors should continue monitoring the company’s financial health and should look to invest in FANHUA INC if they believe the company is positioned to maintain its current momentum.