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Cheche Group (CCG)
NASDAQ:CCG
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Cheche Group
(NASDAQ:CCG)
50Neutral
Positive Factors
Financial Performance
Cheche Group Inc. experienced its first GAAP profitable quarter, with net income turning positive 18 months earlier than expected.
Strategic Partnerships
Cheche Group's partnerships with major new energy vehicle companies like Volkswagen and NIO help secure higher margins and strengthen its market position.
Negative Factors
Investment Spending
For 3Q24, an adjusted net loss is projected, reflecting investment spending and public company costs, wider than previous quarters.
Cheche Group (CCG) vs. S&P 500 (SPY)
Market Cap
$85.59M
Dividend YieldN/A
Average Volume (3M)806.55K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth314.76%
EPS Growth93.85%
CountryUS
Employees635
SectorCommunication Services
Sector Strength79
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)-0.15
Shares Outstanding57,145,706
10 Day Avg. Volume1,658,417
30 Day Avg. Volume806,553
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)N/A
P/FCF Ratio265.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Cheche Group Business Overview & Revenue Model
Company DescriptionCheche Group (CCG) is a technology-driven company operating primarily in the insurance sector. It leverages digital platforms to streamline insurance distribution, providing an enhanced experience for both insurers and customers. The company's core services include offering a comprehensive suite of technology solutions that facilitate the seamless integration of insurance products with various digital ecosystems.
How the Company Makes MoneyCheche Group generates revenue through a variety of streams, primarily focused on its role as an intermediary in the insurance sector. The company earns commissions from insurance policies sold via its platform, benefiting from its partnerships with numerous insurers who use its technology to reach a broader customer base. Additionally, CCG offers software solutions and technology services on a subscription or service-fee basis to insurance providers, facilitating the digital transformation of their operations. These strategic alliances and technology offerings are key contributors to the company's earnings.
Cheche Group Financial Statement Overview
Summary
Cheche Group shows robust revenue growth but struggles with profitability and cash flow management. The balance sheet indicates improved stability, yet negative margins and cash flow issues highlight the need for operational improvements.Income Statement
Cheche Group has shown a notable revenue growth of 23.3% in the latest year, with total revenues increasing from $2.68 billion to $3.30 billion. However, the company is struggling with profitability as evidenced by a negative net profit margin of -4.83% and a declining gross profit margin of 4.25%. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, while revenue growth is strong, profitability remains a significant challenge.40
Negative
Balance Sheet
The balance sheet shows a positive equity turnaround from negative in 2022 to $378 million in 2023, indicating improved financial stability. The debt-to-equity ratio stands at 0.08, suggesting low leverage. However, the equity ratio is 42.3%, which is moderately strong but indicates reliance on liabilities. Return on Equity is negative due to net losses, reflecting the company's struggle to generate shareholder returns. Overall, the balance sheet shows improved stability but ongoing profitability issues.50
Neutral
Cash Flow
Cheche Group's cash flow statement reveals negative free cash flow of $27.5 million, though this is an improvement from the previous year. The operating cash flow to net income ratio is 0.17, indicating a weak cash conversion from earnings. Free cash flow to net income ratio remains negative, highlighting ongoing liquidity challenges. Overall, while there are slight improvements in free cash flow, cash flow management remains a concern.35
Negative
| Breakdown | |||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 773.93M | 3.30B | 2.68B | 1.74B | Gross Profit |
| 47.06M | 140.22M | 142.31M | 80.81M | EBIT |
| -5.22M | -167.78M | -115.95M | -155.71M | EBITDA |
| -5.22M | -146.95M | -76.83M | -125.61M | Net Income Common Stockholders |
| -2.14M | -159.59M | -91.02M | -146.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 149.77M | 264.87M | 149.77M | 426.14M | Total Assets |
| 712.50M | 893.98M | 712.50M | 868.56M | Total Debt |
| 13.90M | 29.35M | 13.90M | 36.67M | Net Debt |
| -101.04M | -214.04M | -101.04M | -325.72M | Total Liabilities |
| 1.97B | 515.79M | 1.97B | 1.87B | Stockholders Equity |
| -1.26B | 378.18M | -1.26B | -1.01B |
| Cash Flow | Free Cash Flow | ||
| ― | -27.50M | -160.10M | -189.22M | Operating Cash Flow |
| ― | -26.95M | -158.86M | -187.59M | Investing Cash Flow |
| ― | 12.82M | 27.69M | -65.33M | Financing Cash Flow |
| ― | 140.34M | -159.04M | 583.67M |
Cheche Group Technical Analysis
Positive
1.13
Price Trends
0.96
Positive
0.90
Positive
0.89
Positive
Market Momentum
0.08
Positive
54.52
Neutral
29.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCG, the sentiment is Positive. The current price of 1.13 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 0.96, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 29.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCG.
Cheche Group Risk Analysis
Cheche Group disclosed 85 risk factors in its most recent earnings report. Cheche Group 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 0 New Risks
Cheche Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.07B | 86.81 | 10.41% | ― | 158.57% | ― | |
69 Neutral | $3.89B | ― | 2.80% | ― | 56.54% | ― | |
62 Neutral | $692.76M | ― | -10.95% | ― | 77.44% | 85.53% | |
61 Neutral | $2.50B | ― | -31.05% | ― | 20.94% | 16.23% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% | |
52 Neutral | $317.58M | ― | -1.24% | ― | 8.74% | 89.80% | |
50 Neutral | $85.59M | ― | -22.76% | ― | 314.76% | 93.85% |
* Communication Services Sector Average
Performance Comparison
CCG
Cheche Group
1.13
-3.76
-76.89%
LMND
Lemonade
34.28
17.05
98.96%
GOCO
GoHealth
13.75
0.69
5.28%
ROOT
Root
135.89
89.12
190.55%
HIPO
Hippo Holdings
27.62
8.77
46.53%
OSCR
Oscar Health
14.19
-0.06
-0.42%
Cheche Group Earnings Call Summary
Earnings Call Date: Nov 26, 2024 | % Change Since: 31.40% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook for Cheche Group, highlighting its recent profitability, strong growth in the NEV sector, and successful expansion of partnerships. Despite some challenges related to lower commission rates and high claims ratios in NEV insurance, the company's strategic focus and cost reductions have led to substantial improvements.Highlights
Profitable Inflection Point
Cheche achieved profitability in Q3 2024, with net income turning positive for the first time, recording RMB 4.1 million or USD 0.6 million compared to a RMB 55.4 million loss in Q3 2023.
Strong Growth in NEV Sector
NEV gross premiums grew 120% year-over-year to USD 126 million, and the number of embedded policies sold increased by 140% year-over-year to 292,000 policies.
Partnership Expansion
Cheche signed an agreement with Tokio Marine's Chinese subsidiary, marking its first collaboration with a foreign insurer and expanding service capabilities.
Reduction in Expenses
Selling and marketing expenses dropped by 53.6% to RMB 18.1 million, and general and administrative expenses decreased by 41.4% to RMB 20.4 million year-over-year.
Lowlights
Lower NEV Insurance Commission Rates
Insurance policies on NEVs currently enjoy lower commission rates than ICEs due to reduced profitability for insurance carriers.
High Claims Ratio in NEV Insurance
NEV insurance continues to experience high claims ratios, posing challenges for profitability in this segment.
Company Guidance
During the Cheche Group's Q3 2024 earnings call, the company reaffirmed its full-year guidance, projecting net revenues between RMB 3.5 billion and RMB 3.7 billion, marking an increase of 6.1% to 12.1% compared to 2023. Total written premiums are expected to range from RMB 24.5 billion to RMB 26.5 billion, representing an 8.4% to 17.3% growth over the previous year. Cheche reported a significant milestone of achieving profitability this quarter, with net income of RMB 4.1 million, a notable turnaround from a RMB 55.4 million loss in Q3 2023. Additionally, NEV gross premiums saw a 120% increase to USD 126 million year-over-year, with embedded policies rising 140% to 200,000. These metrics reflect Cheche's strategic focus on NEV insurance, partnerships with 14 NEV manufacturers, and expansion into new markets like Southeast Asia and the Middle East.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.