1. AIFU restructured $140 million in assets, gaining 72% of BGM shares. 2. BGM's market value may rise significantly as AI insurance expands. 3. AIFU reported $3.198 billion revenue, showing strong growth potential. 4. With a P/E ratio of 3.5x, AIFU is undervalued compared to peers. 5. Strategic focus on AI insurance and healthcare drives future growth.
AIFU's transformation and asset restructuring may enhance future revenues and valuations.
The article highlights strategic changes that have direct implications for AIFU's market position.
Investments in AI insurance and healthcare are expected to yield returns over time, similar to how tech integration historically boosted companies.
Recently, the company has been gradually pushing for an intelligent and diversified transformation, aiming to capture growth opportunities in the AI insurance and healthcare sectors. The restructuring of its high-quality assets and a strategic partnership with BGM Group Ltd. (NASDAQ:BGM) are expected to create a second growth curve for the company's future performance.
AIFU has recently undertaken the restructuring of its core assets, involving an amount of $140 million, including RONS Intelligent Technology (Beijing) Co., Ltd. ("RONS Technology") and Shenzhen Xinbao Investment Management Co., Ltd. ("Xinbao Investment").
This is not a simple "sale" transaction; the restructuring involves the Duxiaobao AI insurance platform, which provides intelligent solutions to the insurance market through AI and big data. AIFU exchanged these assets for 72% of BGM Group's shares, becoming the majority shareholder of BGM Group. This transaction is expected to significantly increase BGM Group's market value and open up new opportunities for AIX Inc.'s future development.
Currently, BGM Group's market value has not yet been fully realized in the secondary market. If the AI insurance business expands rapidly, BGM Group's market value and stock price are likely to undergo significant revaluation.
As of December 31, 2023, AIFU's total revenue reached $3.198 billion, reflecting a year-on-year increase of 14.98%, and net profit was $289 million, demonstrating a year-on-year increase of 237.25%. As the largest insurance brokerage platform in China, AIFU has a Price-to-Earnings (P/E) ratio of only 3.5x. In comparison, Prudential Insurance reported revenue of $11.9 billion, up 143%, with a net profit of $1.712 billion, up 271.72%. Meanwhile, Prudential Financial's revenue was $53.979 billion, down 5.1%, but its net profit rose by 249%, reaching $2.508 billion. These results highlight AIFU's significant growth potential.
With a market value of approximately $76 million, AIFU stands in stark contrast to Prudential Insurance (PUK, market value of $21.7 billion) and Prudential Financial (PRU, market value of $46.1 billion). While Prudential focuses primarily on traditional insurance products, AIFU is poised to disrupt the industry with AI-driven solutions, supported by Baidu's big data, which will effectively reduce costs, expand market share, and improve customer satisfaction.
AIFU not only focuses on the AI insurance business but also heavily invests in the pharmaceutical and healthcare sectors, seizing new opportunities brought about by global population aging. Key driving factors include:
Through the strategic restructuring with BGM Group, AIFU has formed a powerful alliance in both the AI insurance and healthcare sectors, positioning itself to become an industry leader. Whether in terms of BGM Group's valuation potential or AIFU's business expansion, this transaction presents a unique opportunity for investors. The dual drivers of AI insurance and healthcare will be the cornerstone of the company's future development.
SOURCE AIX Inc.