Fanhua Inc. (FANH) Stock

About Fanhua Inc.

Fanhua Inc., operating in conjunction with its subsidiary, functions as a leading distributor of insurance solutions throughout China. Its business activities are structured into two distinct divisions: Insurance Agency and Claims Adjusting. The Insurance Agency segment offers a diverse portfolio of property and casualty policies, encompassing individual accident, travel, homeowner, and indemnity medical coverage. Additionally, it provides a comprehensive range of life insurance products, such as individual health, whole life, term life, endowment, annuity, and participating policies. Through its Claims Adjusting division, Fanhua delivers a variety of services, including pre-underwriting assessments, claims handling, residual value management, supervision of loading and unloading operations, and general consulting. The company maintains a significant digital presence, utilizing several online platforms: baoxian.com enables customers to effortlessly search for and purchase a wide array of insurance products; Lan Zhanggui serves as an integrated platform for insurance sales and services; ehuzhu.com functions as an online mutual aid platform; and Chetong.net centralizes online resources for claims services. Furthermore, Fanhua employs Fanhua RONS DOP for digital marketing, Fanhua RONS Guanjia for customer support, and Fanhua WeCom to facilitate direct communication between agents and both existing and prospective clients. Fanhua reaches its clientele through an extensive multi-channel network, which includes its dedicated insurance sales and service groups, independent insurance agencies, numerous sales and service branches and outlets, licensed independent agents, and its team of in-house claims adjusters. Founded in 1998 and headquartered in Guangzhou, China, the company was formerly known as CNinsure Inc. before officially adopting the name Fanhua Inc. in December 2016.

Fanhua Inc. is headquartered in CN.

Fanhua Inc. (FANH) stock trades at $1.53 with a market capitalization of $1.74B. The stock is valued at a price-to-earnings (P/E) ratio of 0.10, price-to-book of 0.01, price-to-sales of 3.85. Over the past 52 weeks the stock has ranged between $1.04 and $7.48, and currently trades 79.5% below its 52-week high.

On profitability, Fanhua Inc. generates a return on equity (ROE) of 14.99%, return on capital employed of 7.37%, an operating margin of 9.34%, a net profit margin of 8.77%.

Official website: www.fanhuaholdings.com

Fanhua Inc. by the numbers, 2020–2023

Between 2020 and 2023 Fanhua Inc. reported revenue of $501.0M rising to $450.0M, a change of -10.2% across 4 years. Compounded, revenue has grown —% a year over five years, -3.5% over three, 11.7% over the last twelve months. Net profit fell to $40.0M.

Operating margin went from 9.3% in 2020 to 9.3% in 2023, essentially unchanged. The most recent net margin is 8.77%. On a trailing twelve-month basis to Dec '23, revenue is $449.0M and net profit $39.0M.

Borrowings rose from $13.0M to $31.0M, cash on hand is $211.7M, cash from operations was $14.0M in the latest year, positive in 4 of the last 4.

Return on equity has averaged 12.1% over five years, and was 13.7% in the most recent year.

The share price itself has compounded at —% a year over five years, —% over three, —% over the last year. Past price movement is history, not a forecast.

Figures are as reported and in the company's own reporting currency. They describe what has already happened and carry no implication about what follows.

Fanhua Inc. (FANH) — frequently asked questions