Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a recovery in its operating cycle, with customer satisfaction being a cornerstone of its service industry [1] - The company reported a revenue of 14.76 billion yuan in 2024, representing a year-on-year growth of 8.5%, and an adjusted net profit of 620 million yuan, up 29.7% year-on-year [5] - The company is focusing on standardized management of its stores, which has led to improved customer satisfaction metrics, including a 95.4% order satisfaction rate and a 62.3% repeat purchase rate [5] - The main business continues to grow, with tire and chassis parts revenue reaching 6.1 billion yuan, a 10.4% increase year-on-year, and automotive maintenance revenue at 5.4 billion yuan, up 9.9% year-on-year [5] - The company has adjusted its revenue forecast for 2025 to 16.72 billion yuan and for 2026 to 19.18 billion yuan, while the net profit forecast for 2025 is adjusted to 625 million yuan [5] Financial Data and Profit Forecast - Revenue (in million yuan): - 2023: 13,601 - 2024: 14,759 - 2025E: 16,720 - 2026E: 19,184 - 2027E: 21,821 - Year-on-year growth rates for revenue: - 2023: 18% - 2024: 9% - 2025E: 13% - 2026E: 15% - 2027E: 14% [2] - Net profit (in million yuan): - 2023: 6,703 - 2024: 484 - 2025E: 625 - 2026E: 947 - 2027E: 1,388 - Year-on-year growth rates for net profit: - 2023: 414% - 2024: -93% - 2025E: 29% - 2026E: 52% - 2027E: 46% [2] - Earnings per share (in yuan): - 2023: 20.80 - 2024: 0.60 - 2025E: 0.76 - 2026E: 1.16 - 2027E: 1.69 [2]

Core Viewpoint - Tuhu Car Maintenance achieved significant growth in 2024, with revenue reaching 14.759 billion RMB, a year-on-year increase of 8.5%, driven by strong performance in automotive products and services [1][2][3] Financial Performance - Revenue for automotive products and services was 13.802 billion RMB, up 9.1% year-on-year, with tire and chassis components and automotive maintenance segments growing by 10.2% to 11.6 billion RMB [1][2] - Gross profit reached 3.746 billion RMB, with a gross margin of 25.4%, an increase of 0.7 percentage points year-on-year [2][3] - Adjusted net profit was 624 million RMB, a substantial increase of 29.7% compared to 2023, indicating improved cost control and operational efficiency [2][3] Market Position and Expansion - Tuhu Car Maintenance solidified its position as the leading independent automotive service provider in China, with a total of 6,874 service locations, a net increase of 965 locations year-on-year [3][4] - The company has a significant advantage over U.S. competitors in terms of scale and growth rate, with Tuhu's store count exceeding that of major U.S. chains [3] User Growth and Satisfaction - The number of transaction users reached 24.1 million, a year-on-year increase of 24.8%, while registered users grew to 139 million, up 20.4% [4] - The platform's order satisfaction rate exceeded 95%, and the user repurchase rate was 62.3%, reinforcing Tuhu's brand influence [4] Competitive Advantages - Tuhu Car Maintenance's success is attributed to its commitment to high-quality products and services, establishing a strong market reputation [5] - The company collaborates with well-known brands to ensure product quality and has implemented a blockchain-based traceability system for product sourcing [5][6] Service and Product Innovations - Tuhu introduced "Gold Quality Assurance" and lifetime tire warranty services, enhancing consumer confidence [6] - The company has launched exclusive products in collaboration with major brands and developed its own controlled brands, achieving significant sales growth in high-end products [6] Supply Chain and Logistics - Tuhu optimized its supply chain by increasing the number of regional and front warehouses, improving inventory management, and enhancing delivery efficiency [7] - The company has reduced fulfillment costs and improved order delivery rates through a robust logistics system [7] Technological Advancements - Tuhu plans to leverage AI technology to enhance operational efficiency, customer service, and supply chain management [10] - The company aims to lead the automotive aftermarket into an era of intelligent services through technological innovation [10] Future Strategies - Tuhu is focused on expanding its presence in lower-tier markets and enhancing its online channels to attract new users [9] - The company aims to deepen its market penetration in both low and high-tier cities while optimizing its product offerings based on regional consumer needs [9]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 14.759 billion yuan for 2024, representing a year-on-year growth of 8.5%, while the adjusted net profit reached 624 million yuan, up 29.7% year-on-year [2] - The gross margin for 2024 was 25.4%, an increase of 0.7 percentage points year-on-year, driven by higher sales of proprietary and controlled brands, better procurement terms from suppliers, and a strategic reduction in low-margin wholesale services [3] - The company expanded its channel network, investing nearly 100 million yuan to support franchisee growth, resulting in a total of 6,874 service locations by the end of 2024, with over 90% of stores operating profitably [4] - The number of transaction users on the platform grew by 24.8% year-on-year, with the company also launching new services such as light beauty services and electric vehicle charging stations [5] Financial Summary - The company’s revenue for 2024 was 14.759 billion yuan, with a year-on-year growth of 8.5% [8] - The adjusted net profit for 2024 was 483.79 million yuan, showing a significant decline of 92.78% year-on-year [8] - The projected revenues for 2025, 2026, and 2027 are 16.256 billion yuan, 17.793 billion yuan, and 19.282 billion yuan, respectively, with expected growth rates of 10%, 9%, and 8% [6] - The adjusted net profit forecasts for 2025, 2026, and 2027 are 630.52 million yuan, 823.05 million yuan, and 1.031 billion yuan, respectively [6] - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.77 yuan, 1.00 yuan, and 1.26 yuan, respectively [6]

Core Viewpoint - Tuhu-W (9690) reported strong financial results for 2024, leading multiple brokerages to maintain a "Buy" rating and prompting an upgrade in target price by CMB International to HKD 21.5 [2][3] Financial Performance - Tuhu achieved a revenue of RMB 14.759 billion in 2024, representing a year-on-year increase of 8.5% - Adjusted net profit reached RMB 624 million, up 29.7% year-on-year - As of the end of 2024, Tuhu had over RMB 7.5 billion in cash [3] Store and User Growth - By the end of 2024, Tuhu had a total of 6,874 stores, a net increase of 965 stores, reflecting a year-on-year growth of 16.3% - The number of transaction users reached 24.1 million, up 24.8% year-on-year, while registered users totaled 139 million, a 20.4% increase [3] Brokerage Insights - CMB International raised Tuhu's 2025 net profit forecast by 10% to RMB 703 million and adjusted the net profit estimate to RMB 826 million, reflecting a 32% increase - The brokerage believes Tuhu is in a favorable competitive position, with over 90% of stores operating for more than six months being profitable [3][4] Growth Projections - CMB International expects Tuhu's revenue growth rate for 2025 to be 12%, a significant increase from the 8.5% growth in 2024 - The number of stores is projected to grow to 7,800 by the end of 2025, with an expected net increase of about 900 stores [4] Margin and Efficiency Improvements - CMB International forecasts an increase in gross margin by 0.8 percentage points to 26.1% in 2025, driven by economies of scale and higher margins from proprietary products - The company is also leveraging AI to enhance user experience and operational efficiency, with an expected reduction in overall operating expense ratio by 0.7 percentage points to 22.9% [4] Strategic Initiatives - KGI Securities expressed confidence in Tuhu's resilient growth, emphasizing the company's strategy to penetrate lower-tier cities, which has effectively converted registered users into transaction users - Tuhu has made significant progress in exploring new service opportunities, with over 5,700 stores offering light beauty services and a peak of nearly 120,000 online orders for these services in 2024 [5] Market Share and New Energy Focus - Tianfeng Securities noted Tuhu's strategy to focus on market share growth, achieving a remarkable 30% year-on-year increase in adjusted net profit - The company is actively expanding its presence in the new energy sector, with 2.7 million transaction users in this category, a 105% increase year-on-year, and has connected 70,000 charging stations across over 340 cities [6][7] Long-term Outlook - Tianfeng Securities maintains a positive long-term outlook for Tuhu, anticipating revenue growth of RMB 16.2 billion, RMB 17.9 billion, and RMB 19.9 billion over the next three years, while also adjusting revenue forecasts for 2025-2026 upwards [7]

Investment Rating - The investment rating for the company is "Buy" [13]. Core Views - The company has achieved revenue growth of 8.5% year-on-year in 2024, reaching 14.759 billion, with tire and chassis parts revenue increasing by 10.4% and automotive maintenance revenue by 9.9% [5]. - The company has a strong cash reserve of over 7.5 billion, supporting further expansion and strategic investments [5]. - The number of registered users reached nearly 140 million, a 20.4% increase year-on-year, with transaction users growing by 24.8% [6]. - The company expanded its workshop stores to 6,874, netting an increase of 965 stores, achieving nearly 50% coverage in counties with over 20,000 passenger vehicles [7]. - Revenue is expected to grow by 11% in 2025, with projected revenues of 16.386 billion, 17.987 billion, and 19.623 billion for 2025, 2026, and 2027 respectively [9]. Summary by Sections Company Overview - Latest closing price is 17.94 HKD, with a total market capitalization of 14.7 billion HKD and a PE ratio of 28.1 [4]. Financial Performance - In 2024, the company achieved a gross profit of 3.7 billion, with a gross margin of 25.4%, reflecting a 0.7 percentage point increase year-on-year [5]. - The adjusted net profit for 2024 was 600 million, a 29.7% increase year-on-year [5]. User Engagement - The average monthly active users reached 12 million, a 17.2% increase year-on-year, with a customer satisfaction rate exceeding 95% [6]. Market Expansion - The company is focusing on expanding its workshop stores and enhancing its brand recognition, which is expected to drive growth in a recovering consumer environment [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Insights - The company has shown significant growth in user numbers and market share, with a registered user base of nearly 140 million by the end of 2024, and a substantial increase in monthly active users and annual transaction users [5][7]. - The company reported a revenue of 14.76 billion RMB for 2024, representing a year-on-year growth of 8.5%, and an adjusted net profit of 620 million RMB, up 29.7% year-on-year [5][8]. - The company continues to expand its store network, with a total of 6,874 service centers by the end of 2024, adding 965 new stores during the year [7][8]. - The management has demonstrated confidence in the company's future by repurchasing shares, acquiring 23,571,300 shares, which is 2.9% of the total issued share capital as of March 20, 2025 [7][8]. - The company is expected to maintain a positive growth trajectory, with projected revenues of 15.96 billion RMB, 17.62 billion RMB, and 19.32 billion RMB for 2025, 2026, and 2027 respectively, reflecting growth rates of 8.14%, 10.41%, and 9.63% [8][9]. Summary by Sections Financial Performance - For 2024, the company achieved a revenue of 14.76 billion RMB and an adjusted net profit of 620 million RMB, with a gross margin of 25.4% [5][9]. - The projected financials for 2025E-2027E include revenues of 15.96 billion RMB, 17.62 billion RMB, and 19.32 billion RMB, with adjusted net profits of 765 million RMB, 1.075 billion RMB, and 1.35 billion RMB respectively [8][9]. User Growth and Market Position - The company has established itself as the leader in the Chinese automotive service market, with a registered user base of nearly 140 million and significant growth in active users [7][8]. - The company has effectively utilized platforms like Douyin to enhance user engagement, resulting in over 100% growth in new users for tire maintenance services [7]. Store Expansion and Marketing Investment - The company has expanded its store network to 6,874 locations, with a significant investment of nearly 100 million RMB in supporting both new and existing stores [7][8]. - Marketing expenses for online and offline promotions totaled 1.04 billion RMB in 2024, an increase of 250 million RMB from the previous year [7].

Investment Rating - The investment rating for the company is "Outperform" [2] Core Insights - The company reported a revenue of 14.8 billion yuan for 2024, representing a year-on-year growth of 8.5%, and an adjusted net profit of 624 million yuan, which is a 29.7% increase year-on-year [6][10] - The company added 965 new workshop stores in 2024, with over 90% of the stores being profitable for more than six months [6][10] - The gross margin for 2024 was 25.4%, an increase of 0.7 percentage points, driven by upstream bargaining power and product structure optimization [10] Financial Analysis - In 2024, the company achieved a total revenue of 14.8 billion yuan, with automotive products and services contributing 13.8 billion yuan, a 9.1% increase year-on-year [8] - The revenue from advertising, franchising, and other services was 960 million yuan, showing a slight growth of 0.3% [8] - The company expects revenues for 2025 to reach approximately 16.4 billion yuan, with adjusted net profits projected at 760 million yuan [10][13] Market Performance - The company's stock closed at 18.16 HKD on March 24, with a 52-week price range of 13.84 to 29 HKD [2] - The company has shown a relative performance against the Hang Seng Index, with a 1-month absolute increase of 8.1% and a relative increase of 6.3% [4] Future Outlook - The company aims to maintain its pricing power while improving gross margins through scale advantages in 2025 [6][10] - The penetration rate of the fast repair business among users exceeded 10% in 2024, with certain product categories experiencing over 50% growth [7][10]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised from HKD 18 to HKD 21, indicating a potential upside of 15.6% [2][12]. Core Insights - The company is expected to return to double-digit revenue growth in 2025, driven by strategic pricing initiatives that enhance user numbers and order volumes. Despite a short-term decline in gross profit margin in the second half of 2024, improvements in procurement negotiations and increased contributions from self-controlled brands are anticipated to stabilize margins in 2025 [2][6]. - Operating expenses have significant room for reduction through more efficient logistics and automation, which is expected to support a continued upward trend in profit margins. The company plans to maintain a growth rate of nearly 1,000 new stores, with over half of the growth coming from lower-tier markets [2][6]. Financial Forecasts - Revenue projections for 2025 are set at RMB 16,741 million, with a slight decrease of 0.3% from previous estimates. Gross profit is expected to be RMB 4,303 million, reflecting a 0.2% increase [5][14]. - The gross margin is forecasted to improve to 25.7% in 2025, with adjusted operating profit expected to reach RMB 681 million, maintaining an operating margin of 4.1% [5][14]. - The adjusted net profit is projected at RMB 777 million for 2025, with a net profit margin of 4.6% [5][14]. Stock Performance - The stock has shown a year-to-date change of 0.89%, with a 52-week high of HKD 27.65 and a low of HKD 14.24. The market capitalization stands at approximately HKD 13,469.82 million [4][14]. User Engagement and Market Expansion - The average monthly active users (MAU) and annual transaction users are expected to grow by 17.2% and 24.8% respectively in 2024. The number of factory stores has increased by 965 to a total of 6,874, with lower-tier markets accounting for 58.2% of the store count [6][7]. - The company has also integrated AI models like DeepSeek into its core business operations to enhance store operational efficiency [6]. Summary of Financial Data - The company’s financial data indicates a steady increase in revenue and profit margins over the next few years, with significant growth expected in both revenue and net profit by 2027 [14][15].

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7]. Core Insights - The company achieved a revenue of 14.8 billion yuan in 2024, representing a year-on-year increase of 8.5%, with an adjusted net profit of 624 million yuan, up 29.7% year-on-year [1]. - The company is focusing on market share growth and optimizing operational efficiency, with a significant increase in user engagement and store expansion [3][4]. - The company is actively enhancing its supply chain efficiency and supporting franchisees to improve operational performance [5]. Revenue and Profitability - In 2024, the company reported a gross profit of 3.7 billion yuan, a year-on-year increase of 11.5%, with a gross margin of 25.4%, up 0.7 percentage points [1]. - The adjusted net profit margin for 2024 was 4.2%, reflecting a year-on-year increase of 0.7 percentage points [1]. - For the second half of 2024, the company expects revenue of 7.6 billion yuan, with a slight decrease in adjusted net profit to 266 million yuan [1]. User and Store Growth - By the end of 2024, the total number of stores reached 6,874, with a net increase of 965 stores, marking a 16.3% year-on-year growth [3]. - The number of transaction users increased to 24.1 million, a year-on-year growth of 24.8%, while registered users reached 139 million, up 20.4% [3]. - The company has expanded its presence in key regions, including over 1,000 stores in Guangdong and coverage in major cities [3]. New Energy Vehicle Strategy - The company is accelerating its penetration into the new energy vehicle market, with transaction users for new energy vehicles reaching 2.7 million, a 105% year-on-year increase [4]. - The sales of hybrid engine oil increased by over 270% year-on-year, and the company has established connections with 70,000 charging stations across more than 340 cities [4]. Operational Efficiency - The total operating expenses as a percentage of revenue decreased to 23.6%, down 0.7 percentage points year-on-year [2]. - The company has implemented a support program for franchisees, investing nearly 100 million yuan in 2024 to enhance profitability and operational efficiency [5]. - The company has increased its warehouse density and optimized inventory models, leading to a reduction in fulfillment costs [5].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 14,758,694, an increase of 8.5% compared to RMB 13,601,085 in 2023[6]. - Gross profit for the same period was RMB 3,745,978, with a gross margin of 25.4%, up from 24.7% in 2023, reflecting a 0.7 percentage point increase[6]. - Adjusted net profit (non-IFRS measure) reached RMB 624,138, representing a 29.7% increase from RMB 481,314 in 2023[6]. - The operating profit for 2024 was RMB 331.03 million, compared to RMB 161.52 million in 2023, indicating significant growth in profitability[39]. - The total profit for 2024 was RMB 482,038 thousand, a significant decrease from RMB 6,700,697 thousand in 2023, representing a decline of approximately 92.8%[127]. - The total comprehensive income for 2024 amounted to RMB 527,312 thousand, down from RMB 6,226,907 thousand in 2023, indicating a decrease of about 91.5%[127]. - Basic earnings per share for the year ended December 31, 2024, was RMB 0.6, compared to RMB 20.8 in 2023[126]. User Growth and Engagement - The number of transaction users increased to 24.1 million, a growth of 24.8% from 19.3 million in 2023[9]. - The total number of registered users reached 138.8 million, up 20.4% from 115.3 million in 2023[9]. - The average monthly active users of the app reached 12 million, a significant increase of 17.2% from the previous year[11]. - The number of electric vehicle transaction users on the platform reached 2.7 million, a year-on-year growth of 105%, accounting for over 11% of total transaction users[32]. Operational Efficiency - Operating expenses as a percentage of revenue decreased to 23.6%, down 0.7 percentage points from 2023[10]. - The fulfillment cost ratio decreased by 0.5 percentage points to 4.5% in 2024, reflecting improved operational efficiency[33]. - The order fulfillment rate for next-day delivery improved by over 5 percentage points to 79% in 2024, demonstrating enhanced logistics efficiency[33]. Service Expansion - The company operated 6,874 service centers, a 16.3% increase from 5,909 in 2023, with franchise centers growing by 16.7%[9]. - By the end of 2024, the total number of Tuhu service stations reached 6,874, with a net increase of 965 stations during the year, solidifying its position as the largest automotive service platform in the country[18]. - The number of Tuhu service stations in Guangdong province surpassed 1,000, making it the first province to achieve this milestone[18]. Marketing and Promotion - The total promotional expenses for the year reached RMB 1.04 billion, an increase of RMB 250 million compared to the same period last year, resulting in an average increase of RMB 14,000 per store[21]. - Sales and marketing expenses increased by 11.8% from RMB 1.7 billion in 2023 to RMB 1.9 billion in 2024, due to enhanced marketing activities[53]. Research and Development - R&D expenses grew by 10.4% from RMB 579.6 million in 2023 to RMB 639.8 million in 2024, driven by increased spending on cloud and computing capabilities for AI applications[51]. - Research and development to improve data analytics technology received a 20% allocation, totaling RMB 254.7 million, with RMB 227.7 million already utilized[168]. Financial Position - The company maintained a strong cash reserve of over RMB 75 billion as of the end of 2024, ensuring ample liquidity for future operations[10]. - Cash and cash equivalents decreased to RMB 1,375 billion as of December 31, 2024, from RMB 2,715 billion as of December 31, 2023[84]. - Total non-current assets increased to RMB 4.432 billion as of December 31, 2024, from RMB 3.493 billion as of December 31, 2023[84]. Corporate Governance - The company has complied with all applicable corporate governance code provisions up to the announcement date, except for the separation of the roles of Chairman and CEO[170]. - The audit committee reviewed the audited consolidated financial statements for the year ending December 31, 2024, and found no discrepancies in accounting treatment[176]. Future Outlook - The company emphasizes the importance of forward-looking statements, which are subject to risks and uncertainties[187]. - The company plans to publish its annual report for the year ending December 31, 2024, on its website and the stock exchange's website[182].