Fanhua Inc Intrinsic Value – FANHUA INC Reports Q2 Earnings for FY 2023 on September 1, 2023
September 6, 2023
🌥️Earnings Overview
FANHUA INC ($NASDAQ:FANH) announced its financial results for the second quarter of fiscal year 2023, ending June 30, 2023, on September 1, 2023. Total revenue for the quarter amounted to CNY 1132.6 million, representing a 61.1% increase year-over-year. Net income for the quarter was CNY 76.5 million, a 138.2% growth from the previous year.
Price History
On Friday, September 1, 2023, FANHUA INC reported their earnings for Q2 of their fiscal year of 2023. Shares opened at $7.1 and closed at $7.2, resulting in an 8.0% increase from the previous closing price of $6.7. This marked a significant achievement for the company, which had previously endured a period of financial difficulties earlier in the year. The strong results from FANHUA INC’s Q2 provided a much needed boost to their stock price.
Investors were particularly encouraged by the company’s ability to maintain profit and revenue growth despite the challenging economic environment. With the outlook remaining positive, FANHUA INC is well on its way to a successful fiscal year 2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fanhua Inc. More…
| Total Revenues | Net Income | Net Margin |
| 3.35k | 242.95 | 6.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fanhua Inc. More…
| Operations | Investing | Financing |
| 208.35 | -317.57 | 169.59 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fanhua Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.15k | 1.91k | 34.02 |
Key Ratios Snapshot
Some of the financial key ratios for Fanhua Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.9% | -14.6% | 8.5% |
| FCF Margin | ROE | ROA |
| 3.9% | 9.3% | 4.3% |
Analysis – Fanhua Inc Intrinsic Value
We at GoodWhale have conducted an in-depth analysis of FANHUA INC‘s wellbeing. After carefully considering the financial and operational data, we have concluded that the intrinsic value of FANHUA INC share is around $8.0, calculated by our proprietary Valuation Line. Now FANHUA INC stock is traded at $7.2, which represents a fair price that is undervalued by 9.9%. We believe this is an excellent opportunity for investors to capitalize on this undervaluation and invest in FANHUA INC shares. More…
Peers
The company has established itself as a major player in the Chinese insurance market along with its main competitors Tian Ruixiang Holdings Ltd, Golden Insurance Brokers Co Ltd and China United Insurance Service Inc.
– Tian Ruixiang Holdings Ltd ($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
Investors in FANHUA INC have been rewarded with a 61.1% jump in revenue for the second quarter ending June 30, 2023 compared to the same period last year. Net income also increased by a sizable 138.2% from the prior year, reaching CNY 76.5 million. In response, the stock price has moved up significantly, making it a smart investment choice for those looking to capitalize on a company in its prime. The positive results could be an indicator of strong future performance, making FANHUA INC an attractive option for investors who are looking for long-term returns.
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