NEW YORK, July 27, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on CNinsure Inc. (NASDAQ :CISG ). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=CISG
Highlights from our CISG Report include:
- Strong Top-line Growth - On May 19, 2015, CNinsure Inc. announced its financial results for the first quarter ended March 31, 2015. The China-based online-to-offline financial services provider recorded a 24.3% YoY growth in total net revenues at RMB579.5 million (US$93.5 million), primarily driven by strong growth in insurance agency and insurance brokerage businesses. For the next quarter ending June 2015, CNinsure Inc. remains hopeful for c. 30% YoY increase in its total net revenues.
- A Closer Look at the Segmental Revenue - Revenue from the insurance agency business grew by 23.3% YoY to RMB433.5 million (US$69.9 million) during the quarter, supported by a 22.3% YoY increase in net revenues from the property and casualty (P&C) insurance agency business and a 29.9% YoY increase in net revenues from the life insurance agency business. Additionally, the insurance brokerage business registered a robust growth of 68.5% YoY to RMB86.1 million (US$13.9 million) for Q1 2015, driven by CNinsure's efforts to expand sales channels, develop innovative product offerings and cultivate markets in the past years. Meanwhile, net revenues for the claims adjusting business decreased 5.7% YoY in Q1 2015 to RMB59.9 million (US$9.7 million), reflecting a decline in non-automobile adjusting business and a slight decrease in automobile-related claims adjusting business.
- Operating Performance at a Glance - During the quarter under review, operating income declined 93.6% YoY to RMB0.9 million (US$0.1 million) due to a notable increase in total operating costs and expenses. Total operating costs and expenses grew 27.7% YoY to RMB578.6 million (US$93.3million), of which total operating costs accounted for RMB449.1 million (US$72.4 million). However, on a non-GAAP basis, operating income grew 24.3% YoY to RMB25.0 million (US$4.0 million), while non-GAAP operating margin remained unchanged at 4.3% in Q1 2015.
- Bottom-line Remained Positive- Net income attributable to the Company's shareholders declined 26.2% YoY to RMB33.0 million (US$5.3 million). Consequently, diluted net income per ADS came in at RMB0.55 (US$0.09), down 38.4% YoY. Factors like decrease in investment and interest income impacted the bottom-line. While investment income declined 59.5% to RMB2.9 million (US$0.5 million) in Q1 2015, interest income fell 16.5% YoY to RMB18.6 million (US$3.0 million). The decrease in interest income was primarily due to a decrease in term deposits as a result of an increase in short-term investment and interest rate.
To find out how this influences our rating on CNinsure Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=CISG
About ACI Association:
Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.
ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.
ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.