Investment Rating - The investment rating for the company is "Buy" [2][8]. Core Views - The report indicates that while short-term profit margins are expected to fluctuate due to pricing strategy changes, the revenue growth outlook remains positive. The company is projected to achieve revenue growth slightly better than previously expected in the second half of 2024, driven by effective pricing strategies that boost order volume and market share. However, the adjustments in pricing are anticipated to lead to a slight decline in profit margins in the short term [2][7]. - The target price has been revised down from HKD 24 to HKD 18, reflecting a 16.9% potential upside from the current price of HKD 15.40, based on a 17x P/E ratio for 2025 [2][8]. Financial Forecast Adjustments - Revenue projections for 2024 and 2025 have been slightly adjusted, with a 17% and 32% downward revision in adjusted net profit for those years, respectively. The new revenue forecasts are RMB 14,763 million for 2024 and RMB 16,793 million for 2025, reflecting a 0.3% increase from previous estimates [6][11]. - The adjusted net profit for 2024 is expected to be RMB 611 million, with a net profit margin of 4.1%, and for 2025, it is projected to be RMB 783 million, with a net profit margin of 4.7% [6][11]. Revenue and Profitability Metrics - The company is expected to achieve a revenue of RMB 14,763 million in 2024, with a gross profit of RMB 3,717 million, resulting in a gross margin of 25.2%. For 2025, revenue is projected to increase to RMB 16,793 million, with a gross profit of RMB 4,296 million and a gross margin of 25.6% [6][11]. - The adjusted EBITDA for 2024 is forecasted at RMB 1,082 million, with an EBITDA margin of 6.4%, while for 2025, it is expected to reach RMB 1,558 million, with an EBITDA margin of 8.3% [6][11]. Market Performance - The stock has experienced a year-to-date decline of 14.44%, with a 52-week high of HKD 27.70 and a low of HKD 10.46. The average daily trading volume is 21.63 million shares [4][11].

Investment Rating - Maintain BUY rating for Tuhu Car (9690 HK) with a target price of HK$20 00, representing a 29 9% upside from the current price of HK$15 40 [1][4] Core Views - Tuhu Car's 2H24E adjusted net profit is expected to decline 9% YoY and 32% HoH to RMB243mn due to weaker-than-expected 3Q24 sales and delayed new store openings [1] - FY25E revenue growth is projected to accelerate to 13% YoY, driven by new stores opened in 4Q24 and increased support for existing stores [1] - Gross margin is expected to improve from 25 1% in FY24E to 25 7% in FY25E, supported by lower procurement costs and higher sales of high-margin exclusive and private-label products [10] - Adjusted net profit is forecasted to rise 27% YoY to RMB763mn in FY25E, with a net margin of 4 6% (+0 5ppts YoY) [10] Financial Performance - FY24E revenue is projected at RMB14 764mn (+8 5% YoY), with net profit of RMB445mn (-93 4% YoY) and adjusted net profit of RMB601mn (+25% YoY) [2][10] - FY25E revenue is estimated at RMB16 749mn (+13 4% YoY), with net profit of RMB640mn (+43 9% YoY) and adjusted net profit of RMB763mn (+27% YoY) [2][10] - FY26E revenue is forecasted at RMB18 153mn (+8 4% YoY), with net profit of RMB882mn (+37 9% YoY) and adjusted net profit of RMB994mn (+30 2% YoY) [2][10] Operational Highlights - Total store count is expected to exceed 6 900 by the end of FY24, up from over 900 stores in FY24 [10] - 2H24E gross margin is projected to decline 1 5ppts HoH and 0 7ppts YoY to 24 4% due to price cuts on tire products [10] - Selling expense ratio is estimated to rise 1 1ppts HoH to 13 8% in 2H24E to boost customer traffic [10] Valuation - The target price of HK$20 00 is based on 20x revised adjusted FY25E EPS, reflecting Tuhu Car's resilience compared to peers amid economic uncertainties [10] - Tuhu Car trades at a discount to US peers O'Reilly (ORLY US) and Advance Auto Parts (AAP US), which have valuation multiples of around 30x [10] Share Performance - Tuhu Car's share price has declined 21 1% over the past month, 24 1% over the past three months, and 16 8% over the past six months [6] Shareholding Structure - Tencent Holdings holds a 19 4% stake in Tuhu Car, while Mr Chen Min owns 10 1% [5]

Group 1 - Goldman Sachs maintains a "Buy" rating for Tuhu-W, raising the target price from HKD 22.5 to HKD 24.5, anticipating continued operational leverage and efficiency improvements, which will lower operating expense ratios and enhance gross margins [1] - Goldman Sachs views Tuhu as the largest independent automotive aftermarket supplier in China, benefiting from transparent pricing and revenue-generating capabilities [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to HKD 26, indicating a potential upside of 24.7% from the current price of HKD 20.85 [4][18]. Core Insights - The company is positioned to benefit from the increasing average vehicle age in China and a shift towards more rational consumer spending habits. Its proprietary systems enhance supply chain and store management, leading to standardized products and services that cater to younger consumers, resulting in lower customer acquisition costs and higher user retention [1][2]. - The company is expected to capture market share from traditional 4S dealerships as consumers downgrade their spending. Its self-controlled products offer high cost-performance ratios, potentially yielding higher gross margins than branded products, thus creating a positive cycle for customer acquisition and profit growth [2]. - The expansion of the store network is anticipated to offset potential growth pressures at individual store levels. The management reported a 22% year-on-year increase in new store applications in the first half of the year, with expectations to grow from approximately 6,300 stores to about 7,000 by year-end and around 7,900 next year [2][3]. Financial Summary - Revenue projections for the current and next year have been adjusted upwards by 1-2% to RMB 14.936 billion and RMB 17.127 billion, respectively, with gross margins improving to 26.0% and 26.8% [2][10]. - Adjusted net profit estimates have been raised by 3-5% to approximately RMB 634 million and RMB 1.029 billion for the current and next year [2][10]. - The company’s financial metrics indicate a significant recovery, with a projected net profit margin of 4.2% for FY24E and 6.0% for FY25E, alongside an increase in return on equity to 18.4% by FY25E [12][15].

Investment Rating - The report initiates coverage with a "Buy" rating for the company, Tuhu Car, with a target price of HKD 27.59, representing a potential upside from the current price of HKD 21.25 [7][88]. Core Insights - Tuhu Car has established itself as a leading player in the automotive after-service market in China, leveraging an O2O (Online to Offline) model to integrate online and offline services, which has facilitated rapid expansion and a significant user base [1][4][15]. - The company has shown strong growth in user numbers and service offerings, with over 63 million registered users and more than 6,300 service outlets across the country, indicating a robust market presence [2][3][4]. - The automotive after-service market in China is projected to grow significantly, driven by increasing vehicle ownership and the rising average age of vehicles, with a compound annual growth rate (CAGR) of 10.1% from 2018 to 2022 [5][35][38]. Summary by Sections Company Overview - Tuhu Car was founded in 2011 and has evolved from tire sales to a comprehensive automotive service platform, launching its app in 2014 and expanding its service offerings significantly over the years [1][15][18]. - The company has adopted a light-asset franchise model, allowing for rapid store expansion, particularly in lower-tier cities, where it has achieved a coverage rate of nearly 65% in areas with over 20,000 passenger vehicles [3][4][15]. Market Position and Growth - Tuhu Car's service network has expanded rapidly, with over 400 new stores opened in the first half of 2024, and a daily service turnover rate of 2.2 per workstation, significantly higher than the industry average of 1.1 [2][3][4]. - The company has a strong focus on self-owned and controlled products, which accounted for 25.9% of its automotive product and service revenue in 2023, contributing to higher gross margins [2][4][24]. Financial Performance - Tuhu Car's revenue has shown a steady increase, reaching RMB 136 billion in 2023, with projections of RMB 146 billion, RMB 160 billion, and RMB 176 billion for 2024, 2025, and 2026, respectively [4][88]. - The adjusted net profit is expected to grow significantly, from RMB 7.33 billion in 2024 to RMB 15.30 billion by 2026, reflecting a strong upward trend in profitability [4][88]. Competitive Landscape - The automotive after-service market in China is highly fragmented, with Tuhu Car leading the way amidst increasing competition from internet giants like JD.com and Alibaba, which are also expanding their automotive service offerings [4][70][74]. - Tuhu Car's competitive advantages include its extensive store network, strong brand recognition, and effective supply chain management, which enhance its pricing power and service quality [4][74][80]. Future Outlook - The report highlights the significant growth potential in the automotive after-service market, particularly in the context of increasing vehicle ownership and the shift towards electric vehicles, which will require specialized maintenance services [5][35][38]. - Tuhu Car's strategic focus on expanding its service network and enhancing user experience through technology and digital platforms positions it well for future growth in this evolving market [4][63][72].

Financial Performance - Revenue for the first half of 2024 reached RMB 7,126.161 million, a 9.3% increase compared to the same period in 2023[7] - Gross profit increased by 17.0% to RMB 1,845.765 million, with a gross margin of 25.9%[7] - Operating profit surged by 217.5% to RMB 211.884 million, with an operating margin of 3.0%[7] - Net profit for the period rose significantly by 378.0% to RMB 284.332 million[7] - Adjusted EBITDA grew by 27.8% to RMB 449.619 million, representing 6.3% of revenue[7] - Adjusted net profit increased by 67.3% to RMB 358.164 million, with a margin of 5.0%[7] - Total revenue for the first half of 2024 reached RMB 7.1 billion, a year-on-year increase of 9.3% compared to RMB 6.5 billion in the same period of 2023[11] - Gross profit for the first half of 2024 was RMB 1.8 billion, with a gross margin of 25.9%, up 1.7 percentage points year-on-year[11] - Adjusted net profit for the first half of 2024 was RMB 358.2 million, a year-on-year increase of 67.3%[11] - The company's revenue for the first half of 2024 reached RMB 7.126 billion, a 9.3% increase compared to RMB 6.522 billion in the same period of 2023[24][26] - The company's gross profit for the first half of 2024 was RMB 1.846 billion, up from RMB 1.578 billion in the same period of 2023[24] - The company's adjusted EBITDA for the first half of 2024 was RMB 449.6 million, compared to RMB 351.8 million in the same period of 2023[24] - The company's adjusted net profit for the first half of 2024 was RMB 358.2 million, up from RMB 214.0 million in the same period of 2023[24] - The company's operating profit for the first half of 2024 was RMB 211.9 million, a significant increase from RMB 66.7 million in the same period of 2023[24] - Revenue for the first half of 2024 reached RMB 7,126,161 thousand, a 9.3% increase compared to RMB 6,521,629 thousand in the same period of 2023[110] - Gross profit for the first half of 2024 was RMB 1,845,765 thousand, up 16.9% from RMB 1,578,109 thousand in the first half of 2023[110] - Operating profit for the first half of 2024 was RMB 211,884 thousand, a significant increase from RMB 66,731 thousand in the same period of 2023[110] - Net profit attributable to owners of the parent company for the first half of 2024 was RMB 285,549 thousand, compared to RMB 60,264 thousand in the first half of 2023[110] - Total revenue for 2024 reached 7,126,161 thousand RMB, a 9.3% increase from 6,521,629 thousand RMB in 2023[128] - Revenue from automotive products and services grew to 6,643,280 thousand RMB in 2024, up 9.6% from 6,058,798 thousand RMB in 2023[128] - Franchise services revenue increased to 378,265 thousand RMB in 2024, a 6.1% rise from 356,528 thousand RMB in 2023[128] - Advertising services revenue rose to 48,045 thousand RMB in 2024, up 21.9% from 39,418 thousand RMB in 2023[128] - Financial income for 2024 was 90,443 thousand RMB, a 46.7% increase from 61,640 thousand RMB in 2023[131] - Pre-tax profit for 2024 was 557,360 thousand RMB, a 20% increase from 464,452 thousand RMB in 2023[130] - Sales costs for 2024 were 5,112,765 thousand RMB, up 8% from 4,733,594 thousand RMB in 2023[132] - Employee benefits expenses, including wages and salaries, decreased to 680,061 thousand RMB in 2024 from 704,012 thousand RMB in 2023[132] - Advertising and promotion expenses increased to 471,006 thousand RMB in 2024, up 26.3% from 372,833 thousand RMB in 2023[132] - Basic earnings per share for 2024 remained stable at 0.4 RMB, consistent with 2023[137] User and Store Growth - The number of Tuhu Workshop stores increased by 23.0% to 6,311, with 6,162 being franchised stores[8] - Transaction users grew by 18.8% to 21.4 million[8] - Registered users increased by 20.7% to 126.4 million[8] - Cumulative registered users reached 126 million by June 2024, maintaining the company's position as China's largest independent automotive service platform[12] - Monthly active users (MAU) reached 11.5 million in the reporting period, a year-on-year increase of 15.8%[12] - The 12-month cumulative transacting users reached 21.4 million, a year-on-year increase of 18.8%[12] - The company's repurchase rate reached 61.1%, further improving from the previous year[12] - The number of Tuhu Workshop stores reached 6,311 by June 2024, an increase of 402 stores compared to the end of 2023[13] Operational Efficiency and Costs - The company optimized its regional warehouse network, reducing the number of regional warehouses to 29, with warehouse area increasing by 5.9% and average rental cost per square meter decreasing by 6.7%[20] - The company achieved a 77.2% on-time or next-day delivery rate for orders, with self-delivery routes covering over 100 cities[20] - The company operated 509 front warehouses nationwide, maintaining an industry-leading "30-minute delivery within 5 kilometers" standard[20] - Sales cost rose by 6.8% from RMB 4.9 billion in 2023 to RMB 5.3 billion in 2024, mainly due to increased costs in automotive products and services[31][33] - Other income and gains decreased by 74.7% from RMB 83.2 million in 2023 to RMB 21.0 million in 2024, mainly due to reduced government subsidies and stable foreign exchange rates[35] - Operating and support expenses increased by 4.1% from RMB 272.0 million in 2023 to RMB 283.1 million in 2024, driven by higher travel and outsourcing costs[36] - R&D expenses slightly increased from RMB 298.0 million in 2023 to RMB 302.0 million in 2024, due to company-wide salary adjustments and new hires[37] - Sales and marketing expenses grew by 7.9% from RMB 841.5 million in 2023 to RMB 908.1 million in 2024, driven by increased advertising and promotion efforts on new media platforms[38] - General and administrative expenses slightly increased from RMB 185.5 million in 2023 to RMB 186.1 million in 2024, due to higher transaction fees and personnel costs[39] - Income tax expenses decreased by 55.1% to RMB 4.8 million for the six months ended June 30, 2024, due to non-recurring taxable income in the prior year[41] - Profit for the six months ended June 30, 2024, surged to RMB 284.3 million, a significant increase compared to RMB 59.5 million in the same period last year[42] - Adjusted EBITDA (non-IFRS) for the six months ended June 30, 2024, was RMB 449.6 million, up from RMB 351.8 million in the same period last year[44] - Adjusted net profit (non-IFRS) for the six months ended June 30, 2024, reached RMB 358.2 million, compared to RMB 214.0 million in the same period last year[45] - R&D expenses for the first half of 2024 were RMB 283,086 thousand, slightly higher than RMB 272,020 thousand in the same period of 2023[110] - Sales and marketing expenses for the first half of 2024 were RMB 908,125 thousand, up from RMB 841,540 thousand in the first half of 2023[110] Cash Flow and Financial Position - The company's cash reserves stood at RMB 7.1 billion as of the end of the reporting period[11] - The company repurchased 12,286,900 Class A shares in the first half of 2024, spending a total of HKD 204 million[22] - The company provided over RMB 1 million in fee reductions for more than 100 affected workshop stores in disaster-stricken areas[21] - Total non-current assets as of June 30, 2024, increased to RMB 4,075.8 million, up from RMB 3,493.4 million as of December 31, 2023[47] - Total current assets as of June 30, 2024, stood at RMB 7,703.2 million, a decrease from RMB 8,271.3 million as of December 31, 2023[47] - Total current liabilities as of June 30, 2024, were RMB 6,435.5 million, down from RMB 6,602.4 million as of December 31, 2023[47] - Net current assets as of June 30, 2024, were RMB 1,267.7 million, compared to RMB 1,668.9 million as of December 31, 2023[47] - Total equity as of June 30, 2024, increased to RMB 4,616.0 million, up from RMB 4,458.3 million as of December 31, 2023[48] - Trade receivables decreased by 5.6% to RMB 206.0 million as of June 30, 2024, compared to RMB 218.2 million as of December 31, 2023, due to enhanced monitoring and management measures[50] - Financial investments increased by 71.3% to RMB 4.54 billion as of June 30, 2024, compared to RMB 2.65 billion as of December 31, 2023, driven by better utilization of cash[52] - Restricted cash decreased to RMB 1.16 billion as of June 30, 2024, from RMB 1.46 billion as of December 31, 2023[53] - Cash and cash equivalents decreased to RMB 1.36 billion as of June 30, 2024, from RMB 2.72 billion as of December 31, 2023[54] - Trade payables and notes payable decreased by 1.6% to RMB 3.83 billion as of June 30, 2024, compared to RMB 3.89 billion as of December 31, 2023[56] - The asset-liability ratio improved to 60.8% as of June 30, 2024, from 62.1% as of December 31, 2023[57] - Total revenue growth rate was 9.3% in 2024, compared to 19.3% in 2023[58] - Gross profit margin increased to 25.9% in 2024 from 24.2% in 2023[58] - Adjusted EBITDA margin (non-IFRS) improved to 6.3% in 2024 from 5.4% in 2023[58] - Net cash generated from operating activities was RMB 718.7 million for the six months ended June 30, 2024, primarily due to pre-tax profit of RMB 289.1 million[62] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 2 billion, primarily due to RMB 4.4 billion in financial investments and RMB 186.5 million in property, plant, and equipment purchases, partially offset by RMB 2.6 billion in financial investment income and RMB 46 million in interest income[63] - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 105.5 million, mainly due to RMB 185.6 million in share repurchases and RMB 69.2 million in lease principal payments, partially offset by a reduction of RMB 156.7 million in restricted cash[64] - Capital expenditures for the six months ended June 30, 2024, were RMB 186.8 million, an increase of 11.7% compared to RMB 167.2 million in the same period in 2023[65] - Capital commitments as of June 30, 2024, were RMB 120.2 million, a decrease of 42.4% from RMB 208.8 million as of December 31, 2023, primarily related to the construction of new automated warehouses[66] - The company had no significant contingent liabilities or guarantees as of June 30, 2024[65] - The company had no material acquisitions, significant investments, or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2024[69] - As of June 30, 2024, the company had 4,506 employees, a decrease from 4,691 employees as of June 30, 2023, with total compensation costs of RMB 807.1 million for the six months ended June 30, 2024, compared to RMB 838.7 million in the same period in 2023[69] - Tencent held a 21.4% interest in the company's Class A shares as of June 30, 2024[75] - The company's foreign exchange risk is primarily related to USD-denominated bank balances held by its subsidiaries in China, with no formal hedging policy in place[68] - The company plans to fund future capital expenditures through internal resources, including cash and cash equivalents and proceeds from its global offering[65] - The company has a total of 809,649,955 issued shares as of June 30, 2024, consisting of 741,731,095 Class A shares and 67,918,860 Class B shares[76] - Tencent Holdings Limited is deemed to have an interest in 158,895,235 Class A shares through its controlled entities[76] - FIL Limited is deemed to have an interest in 46,836,555 Class A shares through its controlled entities[76] - Joy Capital Opportunity, L.P. and its related entities hold a total of 44,007,640 Class A shares[77] - Ubiquity Holdings Ltd. holds 42,707,045 Class A shares, with FountainVest China Capital Partners Fund III, L.P. owning 76.84% of Ubiquity Holdings Ltd.[78] - Junxi Limited holds 39,167,585 Class A shares, with Zhou Kui deemed to have an interest in these shares[79] - The 2019 Equity Incentive Plan has granted but unexercised options for 42,774,699 Class A shares as of June 30, 2024[83] - The Post-IPO Share Plan has 39,530,941 restricted share units and 8,143,714 options available for grant as of June 30, 2024[86] - The company issued 60,000 share options under the Second Phase Post-IPO Share Plan (Existing Shares) from the adoption date to June 30, 2024[91] - The total number of shares that may be issued under all share options, restricted shares, restricted share units, and awards granted under the 2019 Equity Incentive Plan, Post-IPO Share Plan, and Second Phase Post-IPO Share Plan (Existing Shares) represents approximately 0.1% of the weighted average number of A shares outstanding for the six months ended June 30, 2024[91] - The net proceeds from the global offering amounted to approximately HK$1,273.3 million[94] - 35% of the net proceeds (HK$445.6 million) were allocated to enhancing supply chain capabilities and R&D for data analytics technology, with HK$161.3 million utilized in the first half of 2024[95] - 20% of the net proceeds (HK$254.7 million) were allocated to expanding the store network and franchisee base, with HK$29.8 million utilized in the first half of 2024[95] - 15% of the net proceeds (HK$191.0 million) were allocated to expanding the store network and franchisee base, with HK$94.7 million utilized in the first half of 2024[95] - 20% of the net proceeds (HK$254.7 million) were allocated to investments related to new energy vehicle owner services and related tools and equipment, with HK$42.0 million utilized in the first half of 2024[95] - 10% of the net proceeds (HK$127.3 million) were allocated to working capital and general corporate purposes, with HK$14.8 million utilized in the first half of 2024[95] - The total amount of net proceeds utilized in the first half of 2024 was HK$342.6 million, leaving HK$641.5 million unutilized as of June 30, 2024[95] - The company repurchased 12,286,900 Class A shares for a total consideration of approximately HK$204 million between March 18, 2024, and April 22, 2024[98] - The repurchased Class A shares were subsequently canceled on June 3, 2024, and 1,030,720 Class B shares were converted to Class A shares on a one-to-one basis[98] - The company repurchased 2,903,600 Class A shares under the second phase of the post-IPO share plan for a total consideration of approximately HK$50.53 million between July 19, 2024, and the latest practicable date[99] - The company has not purchased, sold, or redeemed any listed securities (including treasury shares) other than the disclosed repurchases during the six months ended June 30, 2024

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of HKD 17.98 [1]. Core Insights - The company is experiencing steady revenue growth driven by the expansion of its store and user base, with a reported revenue of HKD 7.1 billion for the first half of 2024, representing a year-on-year increase of 9.3% [3]. - The company has added 402 factory stores, bringing the total to 6,311, and has registered 126 million users, a 20.7% increase year-on-year [3]. - The adjusted net profit for the first half of 2024 is HKD 358 million, up 67.3% year-on-year, with a gross margin of 25.9%, reflecting an improvement due to the continuous enhancement of proprietary controlled products [3]. - The report anticipates revenue growth for 2024-2026 to be HKD 146 billion, HKD 160 billion, and HKD 179 billion, with corresponding year-on-year growth rates of 7%, 10%, and 12% respectively [4]. - The net profit projections for the same period are HKD 720 million, HKD 1.07 billion, and HKD 1.37 billion, with year-on-year growth rates of -89%, +49%, and +28% respectively [4]. - The company is expected to benefit from the optimization of the third-party market structure, which will enhance its performance stability and valuation [4]. Financial Summary - Revenue for 2022 was HKD 11.563 billion, with a projected increase to HKD 17.934 billion by 2026, reflecting a compound annual growth rate (CAGR) of approximately 12% [1]. - The net profit for 2022 was a loss of HKD 2.136 billion, expected to recover to HKD 1.37 billion by 2026 [1]. - Earnings per share (EPS) are projected to rise from a loss of HKD 2.63 in 2022 to HKD 1.69 by 2026 [1]. - The price-to-earnings (P/E) ratio is expected to improve from -6.2 in 2022 to 9.7 by 2026 [1].

Investment Rating - The investment rating for the company is "Buy" and is maintained [1][7]. Core Views - The company has shown resilience against the consumer environment, with a revenue of 7.126 billion and a year-on-year growth of 9.3% for the first half of 2024. The adjusted net profit reached 358 million, reflecting a significant year-on-year increase of 67.3% [4][7]. - The company is focusing on long-term growth by controlling the pace of store expansion and enhancing operational efficiency through a diversified service offering [5][6]. - The company has achieved a user repurchase rate of 61.1%, indicating strong customer satisfaction and loyalty [5][7]. Financial Performance - For the first half of 2024, the company achieved a gross margin of 25.9%, up 1.7 percentage points year-on-year, driven by scale effects and improvements in product and business structure [4][7]. - The company expects revenues of 14.787 billion, 16.846 billion, and 18.917 billion for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 543 million, 997 million, and 1.449 billion [8][9]. - The projected earnings per share (EPS) for the years 2024, 2025, and 2026 are 0.67, 1.23, and 1.78 respectively, with price-to-earnings (P/E) ratios of 24, 13, and 9 [8][9]. Business Strategy - The company is expanding its service categories and enhancing operational capabilities based on a high repurchase rate, which is expected to drive steady revenue growth [7]. - The company has increased its store count to 6,311, with a net addition of 402 stores in the first half of 2024, reflecting a commitment to improving service quality and customer experience [5][6]. - The company has launched high-cost performance tire products in collaboration with manufacturers, achieving sales of over 1.5 million self-controlled tires in the first half of 2024 [6].

Investment Rating - Buy rating maintained for the company [1] Core Views - The company achieved revenue of 7.126 billion in 24H1, a year-on-year increase of 9.3%, with adjusted net profit of 358 million, up 67.3% year-on-year, and adjusted net profit margin of 5.0%, up 1.2 percentage points quarter-on-quarter [4] - The company's gross profit margin reached 25.9% in 24H1, up 1.7 percentage points year-on-year, benefiting from scale effects and product/business structure improvements [4] - The number of workshop stores reached 6,311 by 24H1, a net increase of 402 from the end of the previous year, with a user repurchase rate of 61.1% as of June 2024 [5] - The company expanded its service categories, with over 5,300 workshop stores nationwide equipped with car washing capabilities by June 2024 [6] - Revenue for 2024/25/26 is projected to be 14.787/16.846/18.917 billion, with net profit attributable to the parent company expected to be 543/997/1,449 million, corresponding to a PE ratio of 24/13/9 times [7] Business Performance - Revenue from tire and chassis parts/car maintenance/advertising, franchise, and other businesses increased by 11%/11%/4% respectively in 24H1, with gross profit margins for tire and chassis parts/advertising, franchise, and other businesses improving [4] - The company's proprietary and self-controlled products accounted for an increasing proportion of revenue in 24H1, driven by product strategies aligned with consumer trends [4] - The company sold over 1.5 million self-controlled tires produced by Double Star and Double Coin in 24H1, and its proprietary maintenance brand covered 30 categories, with 21 million products sold by June 2024 [6] Financial Projections - Revenue growth rates for 2024/25/26 are projected at 9%/14%/12%, with net profit growth rates of -92%/83%/45% [8] - Gross profit margins are expected to be 25.75%/27.07%/28.27% for 2024/25/26, with net profit margins of 3.68%/5.92%/7.66% [9] - ROE is projected to be 10.84%/16.57%/19.39% for 2024/25/26, with ROIC at 8.20%/13.95%/16.38% [9] Operational Metrics - The company's asset-liability ratio is expected to decrease from 60.52% in 2024 to 57.05% in 2026 [9] - The current ratio is projected to improve from 1.32 in 2024 to 1.53 in 2026, with the quick ratio increasing from 0.78 to 1.01 over the same period [9] - Total asset turnover is expected to remain stable at around 1.2-1.3 times from 2024 to 2026 [9]

汽车/汽车服务 F原证券 公 司 研 究 途虎-W（09690.HK） 2024 年 09 月 03 日 门店维持高速扩张，利润率稳步提升 ——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 证书编号：S0790522080001 chennuo@kysec.cn 证书编号：S0790123070031 日期 2024/9/3 公司盈利能力持续提升，国内最大的独立汽车服务平台地位不断加强 途虎-W 发布 2024 年半年报，2024 年上半年实现营业收入 71.26 亿元，yoy+9.3%； 实现经调整净利润 3.58 亿元，yoy+67.3%；2024H1 实现综合毛利率 25.9%，同 比提升 1.7pct。截至 2024 年 6 月，公司累计 12 个月交易用户数达到 2140 万人， yoy+18.8%，延续了中国最大的独立汽车服务平台的地位。尽管汽修是个相对刚 性的需求，但考虑到消费意愿下滑的影响，车主或选择更具性价比的产品及降低 使用私家车的频率，一定程度上增加了磨损件的更换周期，对途虎收入增长具有 一定影响。2022-202 ...