Fanhua Inc Intrinsic Value Calculation – FANHUA INC Reports Fourth Quarter FY2022 Earnings Results for December 31, 2022

Earnings Overview

FANHUA INC ($NASDAQ:FANH) released its financial results for the fourth quarter of FY2022, which ended on December 31 2022, on March 14 2023. Total revenue for the period was CNY 70.6 million, representing a 544.9% year-over-year surge, while net income was CNY 767.4 million, down 4.4% year-over-year.

Transcripts Simplified

We will review our financial results and provide comments from our management team. Following that, our CFO, Mrs. Li, will provide a detailed financial review of our first quarter performance. After that, we will open up the call for questions. Mr. Li: Thank you for joining us today. We are continuing to invest in our core business and expanding our product range to capitalize on the growth opportunities in the market. We are also exploring new markets and launching new products to further accelerate our growth.

Mrs. Li: Thanks Mr. Li. Now I will provide a financial review of our first quarter performance. In conclusion, we are pleased with our first quarter performance and remain confident that we are well positioned to drive our business forward in the coming quarters. That concludes our prepared remarks for today. We will now open the call up for questions.

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…

Stock Price

On Tuesday, FANHUA INC reported its fourth quarter earnings results for December 31, 2022. Stock opened at $8.1 and closed at $8.0, with a meager increase of 0.1% from its last closing price of 8.0. The company reported strong earnings growth in the fourth quarter, driven by higher sales in their core product segments. This marks the first dividend declaration since FANHUA INC went public in April 2022.

In conclusion, FANHUA INC reported solid earnings results for the fourth quarter of FY2022, driven primarily by higher sales in their core product segments and increased dividend payout. With their current momentum, FANHUA INC is well-positioned to capitalize on opportunities in the months ahead. Live Quote…

Analysis – Fanhua Inc Intrinsic Value Calculation

At GoodWhale, our mission is to provide reliable financial insights for investors. As part of this, our team has been analyzing the wellbeing of FANHUA INC‘s stock. Based on our proprietary Valuation Line, we have determined the intrinsic value of FANHUA INC’s share to be around $2.2. Currently, FANHUA INC’s stock is being traded at $8.0, which suggests that it is overvalued by 270.3%. We believe that this could be an excellent opportunity for investors to enter the market and capitalize on the potential gains offered by the stock. 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 strong fourth quarter financial results for FY2022, ending December 31 2022. Total revenue was up 544.9% year-over-year to CNY 70.6 million while net income decreased 4.4% year-over-year to CNY 767.4 million. This suggests that despite profits being down, there is still a great investment opportunity in the company. Investors should look at their future plans and consider investing in the company due to its strong revenue growth.

Additionally, it would be wise to look into the company’s cost structure and competitive landscape in order to make the most informed decision possible. Investing in Fanhua Inc could prove to be a lucrative choice in the long run.