Investment Rating - Buy rating (first coverage) [1] Core Views - The company is a leading online-to-offline (O2O) automotive service platform in China, addressing key pain points in the automotive service industry [2] - The company operates a well-managed offline network of stores and technicians, providing high-quality and standardized in-store services [2] - The company has built a comprehensive automotive service platform that includes car owners, suppliers, service stores, and other participants [2] - As of the end of 2023, the company has 5,909 Tuhu Workshop stores nationwide, with 5,757 being franchised stores, covering all provincial-level administrative regions and over 300 cities [2] - The company has 115 million registered users, with over 19.3 million users placing orders on the platform in 2023, and an average of over 10 million monthly active users on the Tuhu Car Maintenance app [2] - The company's proprietary technology system supports digitalization of the supply chain and is coordinated through intelligent algorithms [2] - The company has over 800 R&D personnel and has developed a comprehensive automotive service technology support system [2] Business Model and Expansion - The company's asset-light business model enables rapid expansion, with a self-developed online platform supporting stable business operations [2] - The company's innovative franchise model allows for rapid expansion of its store network while ensuring service standardization and product quality [2] - As of March 31, 2023, the company has established the largest and most accurate automotive parts database in China, covering 286 brands and over 66,000 vehicle models, with a matching accuracy rate of 99.99% [2] - The company has strong bargaining power with upstream suppliers and high customer loyalty, with a repurchase rate of over 60% [2] Market Potential - The automotive aftermarket in China is a long-term growth opportunity, with the market size reaching RMB 1.2 trillion in 2022 [2] - The market is expected to grow at a CAGR of 9% from 2023 to 2027, driven by increasing car ownership, mileage, and vehicle age [2] - The market is highly fragmented, with traditional IAM stores expected to increase their share from 46.6% in 2022 to 58.1% in 2027 [2] - The company's new business model addresses the inefficiencies of traditional IAM stores, such as poor user experience, complex supply chain layers, and inefficient fulfillment processes [2] Financial Performance and Valuation - The company achieved a turnaround in 2023, with revenue of RMB 13.6 billion, a YoY increase of 17.8%, and net profit of RMB 670.3 million [19] - The company's gross margin increased from 19.7% in 2022 to 24.7% in 2023, driven by the growth of self-owned and exclusive brands [4] - The company's net profit margin also improved, with adjusted net profit (non-IFRS) reaching RMB 481 million in 2023 [19] - The company's revenue structure has been optimized, with high-margin businesses such as car maintenance increasing their share [20] - The company's gross margin is expected to continue to rise, with forecasts of 26.0%, 26.7%, and 27.4% for 2024, 2025, and 2026, respectively [4] - The company's net profit is expected to reach RMB 671.1 million, RMB 1.114 billion, and RMB 1.547 billion in 2024, 2025, and 2026, respectively [4] - The company's 2025 PE ratio is 12X, compared to the average PE ratio of 21X for comparable companies, indicating significant upside potential [5] Industry Comparison - The US automotive aftermarket has seen strong performance from companies like AutoZone and O'Reilly, with AutoZone's revenue growing from USD 5.71 billion in 2005 to USD 17.46 billion in 2023, a CAGR of 6.4% [2] - AutoZone's net profit grew from USD 571 million in 2005 to USD 2.53 billion in 2023, a CAGR of 8.6% [2] - AutoZone's stock price has increased over 97 times since 2000, with an average PE (TTM) of 15.6X [2] - O'Reilly's revenue grew from USD 2.045 billion in 2005 to USD 15.812 billion in 2023, a CAGR of 12%, with net profit growing from USD 164 million to USD 2.347 billion, a CAGR of 15.9% [2] - O'Reilly's stock price has also increased over 97 times since 2000, with an average PE (TTM) of 21.9X [2] Key Assumptions - The company is expected to maintain an annual franchise store expansion of 1,000-1,200 stores, with franchise store numbers reaching 6,757, 7,957, and 9,157 in 2024, 2025, and 2026, respectively [6] - Single-store revenue is expected to be RMB 1.9 million, RMB 1.875 million, and RMB 1.85 million in 2024, 2025, and 2026, respectively, as the company expands into lower-tier cities [6] - Gross margin is expected to increase to 27%, 27.5%, and 28% in 2024, 2025, and 2026, respectively, driven by the growth of self-owned and exclusive brands [6] Investment Logic - Store expansion is the main driver of revenue growth, while the increase in self-owned and exclusive brands supports gross margin improvement [7] - The franchise model ensures low capital expenditure, and the company's market share in China is still far below that of AutoZone and O'Reilly in the US, indicating significant room for growth [7] - The company's gross margin is still lower than that of overseas leaders (over 50%), suggesting further upside potential [7]

Corporate Governance and Leadership Structure - Tuhu Car Inc. is controlled through a weighted voting rights structure, with Class A shares having 1 vote per share and Class B shares having 10 votes per share, except for certain reserved matters where each share has 1 vote[20] - The company's weighted voting rights structure allows the beneficiaries to exercise voting control without holding a majority of the economic interest in the company[20] - As of the latest practicable date, the weighted voting rights beneficiary, Mr. Chen Min, holds interests in 12,487,564 Class A shares and 68,949,580 Class B shares, representing approximately 48.7% of the voting rights in the company's general meetings[20] - Class B shares can be converted into Class A shares on a 1:1 basis, and upon full conversion, the company will issue 68,949,580 Class A shares, representing approximately 8.4% of the total issued and outstanding Class A shares[22] - The weighted voting rights attached to Class B shares will terminate if the beneficiary no longer beneficially owns any Class B shares, which can occur under specific circumstances outlined in the listing rules[22] - The company has adopted and applied the principles of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules, and has complied with all applicable code provisions except for code provision C.2.1 regarding the separation of the roles of Chairman and CEO[184] - The company has adopted the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules as the code of conduct for directors in dealing with the company's securities, and all directors have confirmed compliance with the Model Code during the period from the listing date to December 31, 2023[185] - The company has not identified any instances of non-compliance with the Model Code by relevant employees during the period from the listing date to December 31, 2023[187] - The Board of Directors has always complied with the Listing Rules regarding the appointment of at least three independent non-executive directors (constituting at least one-third of the Board) and at least one independent non-executive director with appropriate professional qualifications, accounting, or relevant financial management expertise[188] - The Board of Directors is responsible for leading and controlling the company, guiding and supervising the company's affairs, and acting in the best interests of the company and its shareholders[189] - The company does not have separate roles for Chairman and CEO, with Mr. Chen Min currently holding both positions, which the Board believes ensures consistent internal leadership and effective strategic planning[192] - Directors are required to participate in continuous professional development to update their knowledge and skills, and the company provides internal briefings and reading materials on specific topics to directors[194] - The company holds at least four regular Board meetings annually, with notices sent at least 14 days in advance, and meeting agendas and documents provided at least three days before the meeting[198] - The company held one board meeting from January 1, 2024, to the date of this annual report[199] - No general meetings were held from the listing date on September 26, 2023, to the date of this annual report[199] - The company was listed on the Stock Exchange on September 26, 2023[199] Financial Performance and Metrics - Total revenue for 2023 reached RMB 13.6 billion, a 17.8% increase compared to RMB 11.5 billion in 2022[24] - Gross profit for 2023 was RMB 3.36 billion, with a gross margin of 24.7%, up 5.0 percentage points from 2022[24] - Adjusted net profit (non-IFRS) for 2023 was RMB 481.3 million, marking the company's first full-year profit[32] - Adjusted EBITDA (non-IFRS) for 2023 was RMB 757.8 million, a significant improvement from a loss of RMB 186.5 million in 2022[24] - Revenue for 2023 reached RMB 13.6 billion, a 17.8% increase from RMB 11.5 billion in 2022[59] - Gross profit for 2023 was RMB 3.36 billion, up from RMB 2.27 billion in 2022[56] - Adjusted EBITDA for 2023 was RMB 757.8 million, compared to a loss of RMB 186.5 million in 2022[56] - Revenue from automotive products and services grew 17.9% to RMB 12.6 billion in 2023, driven by increased demand for tires and chassis components, which grew 20.9% to RMB 5.55 billion[62] - Revenue from advertising, franchise, and other services grew 15.8% to RMB 954.3 million in 2023[63] - Sales cost for 2023 was RMB 10.24 billion, a 10.4% increase from RMB 9.28 billion in 2022[66] - Revenue from franchise services increased to RMB 731.3 million in 2023, up from RMB 549.7 million in 2022[59] - Revenue from tire and chassis components accounted for 40.8% of total revenue in 2023, up from 39.8% in 2022[59] - Revenue from automotive maintenance services grew 22.5% to RMB 4.93 billion in 2023[62] - Automotive product and service costs increased by 12.8% from RMB 8.6 billion in 2022 to RMB 9.7 billion in 2023, driven by the expansion of Tuhu Workshop stores and customer base[68] - Gross profit increased to RMB 3.4 billion in 2023 from RMB 2.3 billion in 2022, with gross margin rising from 19.7% to 24.7%[69] - Other income and gains decreased by 21.8% to RMB 118.4 million in 2023 from RMB 151.5 million in 2022, primarily due to reduced foreign exchange gains[70] - Operating and support expenses decreased by 4.3% to RMB 600.4 million in 2023 from RMB 627.5 million in 2022, mainly due to reduced headcount and related costs[73] - R&D expenses decreased by 6.7% to RMB 579.6 million in 2023 from RMB 621.4 million in 2022, driven by cost-saving measures[74] - Sales and marketing expenses increased by 11.2% to RMB 1.7 billion in 2023 from RMB 1.5 billion in 2022, primarily due to higher advertising and promotion costs[75] - General and administrative expenses increased by 5.3% to RMB 420.2 million in 2023 from RMB 399.1 million in 2022, mainly due to IPO-related expenses[78] - Financial income surged to RMB 128.5 million in 2023 from RMB 56.9 million in 2022, driven by higher interest rates and increased average balances of deposits and investments[79] - The company recorded a profit of RMB 6.7 billion in 2023, compared to a loss of RMB 2.1 billion in 2022[82] - Adjusted EBITDA (non-IFRS) for the six months ended December 31, 2023, was RMB 405.96 million, up significantly from RMB 35.69 million in the same period of 2022[85] - Revenue for the six months ended December 31, 2023, was RMB 7.1 billion, a 16.5% increase from RMB 6.1 billion in the same period in 2022[87] - Automotive products and services revenue grew by 17.0% to RMB 6.6 billion in 2023, driven by increased demand for tires, chassis components, and car maintenance services[91] - Advertising, franchise, and other services revenue increased by 9.4% to RMB 491.5 million, primarily due to franchise service growth and improved profitability of franchise stores[92] - Sales cost for the six months ended December 31, 2023, was RMB 5.3 billion, a 10.3% increase from RMB 4.8 billion in 2022, mainly due to the expansion of the company's store network and customer base[93][96] - Gross profit for the six months ended December 31, 2023, was RMB 1.8 billion, with a gross margin increase from 20.9% in 2022 to 25.2% in 2023, driven by higher-margin car maintenance services and improved supplier terms[100] - Tire and chassis components revenue increased by 19.3% to RMB 2.9 billion, reflecting post-pandemic travel demand recovery[91] - Car maintenance revenue grew by 19.6% to RMB 2.6 billion, supported by the expansion of the company's store network and customer base[91] - Other automotive products and services revenue increased by 19.2% to RMB 415.9 million, driven by growth in car film and car wash services[91] - Franchise service revenue increased due to network expansion and improved profitability, partially offset by reduced new energy vehicle sales[92] - The company's inventory turnover improved, leading to a reduction in inventory cost write-offs and lower operating costs[96] - Other income and gains decreased by 62.3% to RMB 35.1 million in the six months ended December 31, 2023, compared to RMB 93.3 million in the same period of 2022, primarily due to increased foreign exchange losses and reduced one-time government subsidies[101] - Operating and support expenses increased by 7.3% to RMB 328.4 million in the six months ended December 31, 2023, from RMB 306.2 million in the same period of 2022, driven by higher travel and outsourcing costs, partially offset by reduced staff costs and share-based payment expenses[101] - R&D expenses decreased by 7.1% to RMB 281.7 million in the six months ended December 31, 2023, compared to RMB 303.2 million in the same period of 2022, due to cost-saving measures, partially offset by higher year-end bonuses for employees[101] - Sales and marketing expenses increased by 9.1% to RMB 873.1 million in the six months ended December 31, 2023, from RMB 800.4 million in the same period of 2022, driven by higher advertising and transportation costs, partially offset by reduced staff and outsourcing costs[104] - General and administrative expenses increased by 17.1% to RMB 234.7 million in the six months ended December 31, 2023, compared to RMB 200.5 million in the same period of 2022, mainly due to higher listing-related expenses and impairment provisions[105] - Financial income increased significantly to RMB 66.9 million in the six months ended December 31, 2023, from RMB 39.4 million in the same period of 2022, driven by higher USD deposit rates and increased average balances of deposits and investments[106] - The company recorded a gain of RMB 6.5 billion from the fair value change of convertible redeemable preferred shares in the six months ended December 31, 2023, compared to a loss of RMB 933.0 million in the same period of 2022, reflecting a one-time adjustment post-global offering[107] - Income tax expenses decreased by 5.5% to RMB 14.0 million in the six months ended December 31, 2023, from RMB 14.8 million in the same period of 2022, due to reduced taxable income in certain subsidiaries[108] - The company reported a profit of RMB 6.6 billion in the six months ended December 31, 2023, compared to a loss of RMB 1.2 billion in the same period of 2022[110] - Adjusted EBITDA (non-IFRS) improved to RMB 405.96 million in the six months ended December 31, 2023, from RMB 35.69 million in the same period of 2022, reflecting better operational performance[111] - Adjusted EBITDA and adjusted net profit/(loss) (non-IFRS measures) should not be considered in isolation or as substitutes for annual/periodic profit/(loss) or any performance measures[114] - Total non-current assets increased to RMB 3,493,404 thousand in 2023 from RMB 2,108,270 thousand in 2022, driven by growth in property, plant, and equipment, and long-term financial investments[116] - Total current assets rose to RMB 8,271,281 thousand in 2023 from RMB 6,905,846 thousand in 2022, primarily due to increases in inventory, trade receivables, and short-term financial investments[116] - Trade receivables increased by 25.6% to RMB 218.2 million in 2023, driven by expansion in the franchise network, higher advertising revenue from major clients, and increased SaaS solution contributions[122] - Prepayments, other receivables, and other assets grew by 8.7% to RMB 496.1 million in 2023, mainly due to higher prepayments and recoverable VAT, partially offset by reductions in deposits and loan receivables[125] - Total current liabilities increased to RMB 6,602,353 thousand in 2023 from RMB 5,572,199 thousand in 2022, with significant rises in trade payables and other payables[116] - Total non-current liabilities decreased significantly to RMB 704,013 thousand in 2023 from RMB 22,398,481 thousand in 2022, primarily due to the elimination of convertible redeemable preferred shares[119] - Net assets improved to RMB 4,458,319 thousand in 2023 from a net liability of RMB (18,956,564) thousand in 2022, reflecting a strong recovery in equity[119] - Financial investments, including non-guaranteed wealth management products and fixed deposits, were a significant component of the company's asset structure[126] - Total financial investments increased significantly to RMB 2.65 billion as of December 31, 2023, compared to RMB 540 million in 2022, primarily due to the purchase of long-term financial products to optimize financial returns while maintaining capital safety and liquidity[129] - Restricted cash totaled RMB 1.46 billion as of December 31, 2023, with the non-current portion increasing to RMB 7.8 million from RMB 403,000 in 2022[131] - Cash and cash equivalents amounted to RMB 2.72 billion as of December 31, 2023, with bank and on-hand cash decreasing to RMB 1.27 billion from RMB 2.25 billion in 2022, while short-term deposits increased to RMB 1.44 billion from RMB 438.8 million[134] - Trade payables and notes increased by 24.6% to RMB 3.89 billion as of December 31, 2023, from RMB 3.12 billion in 2022, driven by increased merchandise purchases due to business growth[136] - Other payables and accrued expenses grew by 9.8% to RMB 1.72 billion as of December 31, 2023, from RMB 1.57 billion in 2022, mainly due to higher refundable deposits from potential franchisees, increased construction-related payables, and higher year-end bonuses[141] - Convertible redeemable preferred shares decreased to zero as of December 31, 2023, from RMB 21.7 billion in 2022, following their conversion into Class A shares after the global offering[142] - The asset-liability ratio improved to 62.1% as of December 31, 2023, from 69.3% in 2022, reflecting better financial health[144] - Total revenue growth rate for 2023 was 17.8%, a significant improvement from the -1.5% decline in 2022, indicating strong business recovery[144] - Adjusted EBITDA margin improved to 5.6% in 2023 from -1.6% in 2022, reflecting enhanced operational efficiency[144] - Cash position increased by 44.3% to RMB 6.8 billion as of December 31, 2023, from RMB 4.7 billion in 2022, supported by cash generated from operations and proceeds from the global offering[149] - Net cash used in investing activities was RMB 2.4 billion in 2023, primarily due to RMB 2.8 billion spent on financial investments and RMB 360.0 million on property, plant, and equipment, partially offset by RMB 686.2 million in financial investment income and RMB 129.0 million in interest income[153] - Net cash from financing activities was RMB 1.3 billion in 2023, mainly from the net proceeds of the global offering of Class A shares[154] - Capital expenditures for 2023 were RMB 362.0 million, compared to RMB 400.6 million in 2022, with future capital expenditures to be funded by internal resources, including cash and cash equivalents and net proceeds from the global offering[156] - Capital commitments related to the construction of new automated warehouses amounted to RMB 208.8 million as of 2023, down from RMB 478.3 million in 2022[157] - The company had no significant contingent liabilities or guarantees as of December 31, 2023[155] - The company had no asset pledges as of December 31, 2023, and no major investment or capital asset plans beyond those disclosed in the prospectus[161] - The company had no significant acquisitions, investments, or disposals of subsidiaries, associates, or joint ventures in 2023[161] - Total employee count decreased to 4,729 as of December 31, 2023, from 4,960 in 2022, with total compensation costs of RMB 1.7 billion in 2023, down from RMB 1.8 billion in 2022[161] - The company has no foreign currency hedging policy but manages foreign exchange risk by closely monitoring exposure and considering hedging when necessary[161] - The company provides regular and professional training to employees to maintain workforce quality, knowledge, and skills[162] Business Operations and Growth - The number of Tuhu Workshop stores increased to 5,909 in 2023, a 27.0% year-on-year growth, with 5,757 being franchised stores[27] - Transaction users reached 19.3 million in 2023, a 16.9% increase from 16.5 million in 2022[27] - Registered users grew to 115.3 million in 2023, up 20.7% from 95.5 million in 2022[27] - The company's car maintenance business saw a 34.3% increase in gross profit, rising from RMB 1.2 billion in 2022 to RMB 1.6

Investment Rating - The report assigns an "Accumulate" rating for the company [2]. Core Views - The company is positioned as a leading O2O automotive service provider with significant competitive advantages in scale, supply chain, and operational capabilities, and has ample room for store expansion and profit optimization [4]. - The automotive service market in China is expected to exceed one trillion yuan, driven by the growth of the existing vehicle fleet and the increasing average age of vehicles [4][20]. - The company is projected to achieve revenues of 15.78 billion, 18.17 billion, and 20.44 billion yuan for the years 2024, 2025, and 2026, respectively, with growth rates of 16%, 15%, and 12% [4][12]. - Adjusted net profits are expected to be 874 million, 1.475 billion, and 2.186 billion yuan for the same years, with growth rates of 82%, 69%, and 48% [4][14]. Summary by Sections 1. Investment Recommendations - The company is expected to have a revenue growth of 16% in 2024, 15% in 2025, and 12% in 2026, with adjusted net profits growing significantly during the same period [12][14]. - The target market capitalization for 2024 is set at 18.9 billion HKD, based on a PE ratio of 20x, which is above the industry average [4][17]. 2. Automotive Service Market - The automotive service market in China is projected to grow significantly, benefiting from the increase in the existing vehicle fleet and the aging of vehicles [20][21]. - The market is characterized by a low frequency of service needs, with the DIFM model dominating, which emphasizes offline fulfillment and trust relationships [4][20]. 3. Company Overview - The company has established a vast network of offline stores and collaborates directly with automotive parts suppliers, enhancing its supply chain efficiency [4][20]. - The company’s core competencies include direct procurement and strong control over store operations, supported by a comprehensive technology service system [4][20]. 4. Growth Potential - The company has significant growth potential with an estimated store expansion of 1,500 new stores annually, aiming to exceed 10,000 stores by 2026 [12][14]. - The gross profit margin is expected to improve due to an optimized business structure and increased bargaining power with suppliers [14][15]. 5. Financial Projections - The company’s total revenue is projected to reach 15.78 billion yuan in 2024, with a gross profit of 4.185 billion yuan, leading to a gross margin of 26.5% [15]. - The adjusted net profit is expected to turn positive, with a significant increase in profitability anticipated in the coming years [15][17].

海 外 研 证券研究报告 究 ＃industryId＃ 汽车 ＃investSuggestion＃ ＃09690 .HK ＃dy途Com虎pa-nWy＃ dyStockco ＃ de＃ 规 模效 应持续增强＃，tit盈le＃利 能力稳步提升， 买入 ( i上nve调stS ） uggesti 3 回购股份展示信心 onC han ge＃ ＃createTime1＃ 2024年 4月 2日 公 投资要点 司 ＃市场ma数rk据et Data＃ ＃summary＃ 跟 规模效应持续增强，盈利能力稳步提升。2023 年，途虎实现销售收入 136.01 亿 日期 2024.3.28 踪 元，同比增长 17.8%；实现毛利 33.59 亿元，同比增长 48.0%；毛利率达到 收盘价（港元） 15.34 24.7%，同比提升 5 个百分点。分业务类型来看，轮胎和底盘零部件业务收入同 报 总股本（百万股） 819 比增长 20.9%，毛利率同比提升 3.3 个百分点至 17.4%；汽车保养业务收入同比 告 净资产（亿元） 44.58 增长 22.5%，毛利率同比提升 2.8 个百分点至 32.4%。公司运营费用持续摊薄， ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved its first annual profit in 2023, with a net profit of 480 million RMB, representing a net profit margin of 3.5% [2][4] - The company announced a share buyback plan of up to 1 billion HKD, reflecting confidence in its business outlook and potential to create value for shareholders [2] - Revenue for 2023 reached 13.6 billion RMB, a year-on-year increase of 17.8%, with a gross profit of 3.4 billion RMB and a gross margin of 24.7% [2][4] User Growth and Brand Development - As of the end of 2023, the company had 115 million registered users, with over 19.3 million users placing orders on the platform [3] - The company achieved a repurchase rate of nearly 60% among users, contributing to half of its total revenue [3] - Customer satisfaction reached 94.2%, an increase of 1.5 percentage points from 2022 [3] Store Expansion and Channel Development - The company operated 5,909 service centers nationwide by the end of 2023, an increase of 1,256 centers compared to the previous year [3] - The company is focused on expanding into lower-tier cities, with 3,420 service centers in second-tier cities and below, an increase of 881 centers year-on-year [3] Development of New Energy Vehicle Services - The company is an official after-sales service provider for 13 major battery manufacturers, offering warranty services to new energy vehicle owners [3] - By 2023, over 1.3 million users on the platform were related to new energy vehicle transactions, with a penetration rate of 9.3% among hybrid vehicle users [3] Financial Forecast and Valuation - The company is expected to achieve net profits of 904 million RMB, 1.476 billion RMB, and 2.138 billion RMB for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 9.96, 6.10, and 4.21 [4][5] - Revenue projections for 2024, 2025, and 2026 are 15.824 billion RMB, 18.362 billion RMB, and 21.180 billion RMB, with growth rates of 16% for each year [5][6]

交银国际研究 公司更新 互联网 收盘价 目标价 潜在涨幅 2024年3月18日 港元13.70 港元26.00↓ +89.8% 途虎 (9690 HK) 解禁带来股价短期波动；管理层回购显示业绩稳定增长信心  2023年收入符合预期，利润好于预期。收入136亿元（人民币，下同）， 个股评级 同比增18%，与我们/彭博市场预期基本一致。调整后净利润4.8亿元，净 买入 利率3.5%，对比2022年亏损5.5亿元，好于我们/彭博市场预期的3.2亿 /3.8亿元，得益于销售结构优化和运营效率提升，毛利率同比提升5个百 分点至25%。 1年股价表现  业绩要点：1）汽车产品及服务：收入同比增18%，毛利率提升3.5个百分 9690 HK 恒生指数 30% 点，得益于高毛利的保养业务占比提升、规模优势带来采购成本下降以及 20% 10% 专供和自有品占比提升（2023年42%/26% vs. 2022年41%/17%）。2）广 0% -10% 告加盟及其他：收入同比增16%，较我们预期高4%，其中加盟收入增长 -20% 主要来自工场店数量增加（增1,256家，下沉市场占比70%）和单店盈利 -30% -40% 能力 ...

M N 18 Mar 2024 CMB International Global Markets | Equity Research | Company Update Tuhu Car (9690 HK) Solid FY23 with better profitability Target Price HK$35.3 Tuhu Car (Tuhu) achieved decent profit for the first time in FY23, with revenue (Previous TP HK$50.10) +18% YoY (in line) and adj. NP at RMB481mn (27% above consensus). Looking Up/Downside 195.2% into FY24E, we are positive on its resilient growth (forecasting revenue + 16% Current Price HK$11.96 YoY), backed by workshop expansion, richer offerings, ...

汽车/汽车服务 公 司 研 途虎-W（09690.HK） 首次实现全年盈利，规模效应打开未来成长空间 究 2024年03月17日 ——港股公司信息更新报告 投资评级：买入（维持） 殷晟路（分析师） 陈诺（联系人） yinshenglu@kysec.cn chennuo@kysec.cn 证 书编号：S0790522080001 证书编号：S0790123070031 日期 2024/3/15 港 当前股价(港元) 11.960  首次实现全年盈利，回购彰显业绩信心 股 一年最高最低(港元) 37.700/9.010 途虎-W发布2023年年报，公司2023年实现营业收入136.01亿元，yoy+17.6%； 公 司 总市值(亿港元) 97.94 实现经调整 EBITDA7.58 亿元，经调整净利润 4.82 亿元，首次实现全年盈利。 信 流通市值(亿港元) 97.94 2023年公司综合毛利率为24.7%，较去年同期提升5pct。截至2023年底，途虎 息 总股本(亿股) 8.19 的注册用户已达到1.15亿人，全年交易用户超过1930万人。此外，公司3月15 更 新 流通港股(亿股) 8.19 日发布回购 ...

Investment Rating - The report maintains a "Buy" rating for Tuhu-W (9690.HK) with a target price of 11.96 HKD, reflecting a positive outlook on the company's future performance [2]. Core Insights - Tuhu-W achieved a revenue of 13.6 billion RMB in 2023, representing a year-on-year growth of 17.8%. The adjusted net profit for the same period was 484 million RMB, marking a significant increase of 188% [1][2]. - The company's revenue structure is improving, with a historical high gross margin of 24.7% in 2023, up by 5.0 percentage points year-on-year. The automotive maintenance business, which has a gross margin of 32.4%, is contributing to this improvement [1]. - Tuhu's expansion strategy is effective, with 5,909 service stores by the end of 2023, an increase of 1,256 stores throughout the year. This expansion is expected to meet the growing demand for vehicle maintenance as car usage increases [1]. - The management has announced a share buyback plan, indicating confidence in the company's long-term growth potential. The buyback amount will not exceed 10 million HKD, representing over 10% of the company's market capitalization [1]. Financial Forecasts - The report projects revenues for 2024, 2025, and 2026 to be 15.79 billion RMB, 18.38 billion RMB, and 21.18 billion RMB, respectively. Adjusted net profits are expected to be 848 million RMB, 1.51 billion RMB, and 2.10 billion RMB for the same years [2][7]. - The adjusted EPS is forecasted to be 1.04 RMB, 1.84 RMB, and 2.56 RMB for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 11, 6, and 4 times [2][7].

Financial Performance - Total revenue for the year ended December 31, 2023, reached RMB 13.6 billion, a 17.8% increase from RMB 11.5 billion in 2022[8]. - Gross profit for 2023 was RMB 3.36 billion, corresponding to a gross margin of 24.7%, up 5.0 percentage points from the previous year[10]. - Adjusted net profit for 2023 was RMB 481.3 million, compared to a loss of RMB 551.9 million in 2022[8]. - The company's operating profit improved to RMB 161.5 million in 2023 from a loss of RMB 763.9 million in 2022[1]. - The net profit for 2023 was RMB 6.7 billion, a significant turnaround from a net loss of RMB 2.1 billion in 2022[49]. - Adjusted EBITDA for the year was RMB 757.8 million, a significant recovery from a loss of RMB 186.5 million in the previous year[1]. - The company's revenue for the year ended December 31, 2023, was RMB 13.6 billion, an increase of 17.8% compared to RMB 11.5 billion for the year ended December 31, 2022[32]. - Automotive products and services revenue grew by 17.9% from RMB 10.7 billion in 2022 to RMB 12.6 billion in 2023, driven by increased travel demand post-pandemic[34]. User Growth and Engagement - The number of transaction users increased to 19.3 million, a growth of 16.9% from 16.5 million in 2022[9]. - Registered users reached 115.3 million, representing a 20.7% increase from 95.5 million in 2022[9]. - The user repurchase rate was nearly 60%, with half of the total revenue generated from repeat customers[11]. - Customer satisfaction reached 94.2% in 2023, up 1.5 percentage points from the previous year, indicating the company's leading position in the industry[13]. Store Expansion and Network - The number of Tuhu workshop stores increased to 5,909, a 27.0% rise from 4,653 in 2022[9]. - By the end of 2023, the company had expanded its store network to 5,909 locations, an increase of 1,256 stores compared to the same period in 2022, covering over 300 cities across all provincial-level administrative regions in China[15]. - The number of stores in second-tier and lower cities reached 3,420 by the end of 2023, with 881 new stores added compared to the previous year, highlighting the potential in lower-tier markets[15]. Operational Efficiency - Operating expenses as a percentage of total revenue decreased to 24.4%, down 3.2 percentage points from the previous year[10]. - The average daily store visits by supervisors increased by 28.6% to 1.8 stores per day by the end of 2023, following the implementation of a new intelligent task allocation system[18]. - The proportion of profitable stores that have been open for more than six months increased from 81% in December 2022 to 93% in December 2023[18]. Product and Service Development - The automotive maintenance business gross profit rose to RMB 1.6 billion, a 34.3% increase from RMB 1.2 billion in 2022[10]. - The company has expanded its product matrix by over 700 SKUs in the tire category, adapting to consumer trends and preferences[20]. - The automotive maintenance business has expanded to over 41 categories and more than 8,000 SKUs, emphasizing a scientific approach to user recommendations[21]. - In 2023, revenue from exclusive and self-controlled products accounted for 42.4% and 25.9% of automotive product and service revenue, respectively[22]. Financial Position and Assets - The company's total assets as of December 31, 2023, were RMB 11.76 billion, an increase from RMB 8.01 billion in 2022[120]. - Current assets reached RMB 8,271,281 thousand, an increase from RMB 6,905,846 thousand in 2022, with cash and cash equivalents slightly rising to RMB 2,715,285 thousand[75]. - The company's total liabilities decreased significantly from RMB 22,398,481 thousand in 2022 to RMB 704,013 thousand in 2023, primarily due to the elimination of convertible redeemable preferred shares[76]. - The company's net asset value improved to RMB 4,458,319 thousand in 2023 from a negative net asset value of RMB (18,956,564) thousand in 2022[76]. Cash Flow and Investments - Operating cash flow for 2023 was RMB 1.02 billion, a significant recovery from a cash outflow of RMB 312.7 million in 2022[102]. - The net cash flow from financing activities in 2023 was RMB 1.3 billion, mainly resulting from the net proceeds from the global offering of Class A shares[106]. - The company reported a net cash outflow from investing activities of RMB 2,371,766 thousand in 2023, compared to a cash inflow of RMB 481,347 thousand in 2022[123]. Corporate Governance and Future Plans - The company has adhered to all applicable corporate governance codes since its listing date, with no reported breaches by senior management[160][161]. - The company plans to continue focusing on expanding its franchise network and enhancing its SaaS solutions to drive future revenue growth[78]. - The company emphasizes the importance of artificial intelligence in its future business plans and strategies[177]. - The company is exploring potential mergers and acquisitions to accelerate growth and market expansion[178].