Monday, December 21, 2009

China INSOnline Corp. CHIO Stock Report

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China INSOnline Corp. (CHIO) 
Current price: $0.66
52 week range: $0.35-2.17
Market cap: 25.3M
P/E 2.7
P/B 1.1
P/S 1.5
Overview
China INSOnline Corp. offers online insurance products and services in China, including a network portal for the Chinese insurance industry. The company offers industry professionals a forum for the advertising and promotion of products and services, website construction for marketing teams and others in the insurance industry, software development, insurance agency services whereby the company generates sales commissions on motor vehicle insurance, property insurance and life insurance and accompanying client support services (Morningstar).


Notes
CHIO only has two years of reported earnings, both of which were profitable. For the TTM the company is currently doing better than 2009 year end results and continues to experience growth. Looking at financial health ratios CHIO has a current ratio of 1.57 a quick ratio of 0.95 and financial leverage of 1.47 for year end results 2009. The current ratio and quick ratio are lower than what I would like to see but not alarming.  Looking at the company's profitability I am impressed with their high margins and management ratios i.e. ROA and ROE of 40.69% and 58.90% respectively. Net margin was 51.06% in 2009.


Future outlook
China insonline's main focus is insurance and internet service, they believe that both of these industries are strong upcoming industries in China. The company is predicting 30% organic growth through 2011 and nearly 100% growth of revenue when combining organic growth and growth from acquisitions. I would also anticipate a strong next quarter earnings release due to favorable exchange rates.


 • We are a top Chinese insurance agency portal as well as a national licensed insurance agency that represents some of the major Chinese insurance companies and agencies.
• We have superior web technology that allows Chinese consumers to do "One-Stop Shopping" for their insurance needs.
• We are a profitable company serving one of the fastest growing markets in China.
• We have a solid long-term working relationship with major Chinese insurance companies and agencies.
• We have an experienced management team with a proven, unique and profitable business model (China INSOnline Corp.).

Past operating results and future expectations


YTD Stock price with 100 and 200 day moving averages

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1 comment:

  1. how much will you be willing for donation? Thanks

    ReplyDelete