Investment Rating - The report maintains a "Recommend" rating for Tuhu-W (09690 HK) with a target price of HKD 24 [1] Core Views - Tuhu-W achieved revenue of RMB 7 13 billion in H1 2024, a YoY increase of 9 3%, with gross profit of RMB 1 85 billion, up 17% YoY, and a gross margin of 25 9%, up 1 7 percentage points YoY [1] - Adjusted EBITDA reached RMB 450 million, up 28% YoY, with an EBITDA margin of 6 3%, up 0 9 percentage points YoY [1] - Adjusted net profit was RMB 360 million, a YoY increase of 67%, with an adjusted net profit margin of 5 0%, up 1 7 percentage points YoY [1] - The company added 402 new stores in H1 2024, with over 60% located in lower-tier cities, bringing the total number of workshops to 6,311, a 23% YoY increase [1] - Registered users reached 126 million, up 21% YoY, with 21 4 million transacting users, up 19% YoY, and a user penetration rate of 17% [1] - The average monthly active users (MAU) of the Tuhu app reached 11 5 million, with a repurchase rate of 61 1% among transacting users [1] Store Expansion and User Growth - Tuhu-W added 402 new stores in H1 2024, with over 60% located in lower-tier cities, bringing the total number of workshops to 6,311, a 23% YoY increase [1] - The company's self-operated stores decreased by 3, while franchise stores increased by 405, outperforming the industry average, which saw a contraction of 2,000 traditional 4S stores [1] - The company expects to open 1,000 new stores in 2024, with franchise applications up 22% YoY and store setup time reduced to 27 days [1] - Registered users reached 126 million, up 21% YoY, with 21 4 million transacting users, up 19% YoY, and a user penetration rate of 17% [1] Financial Performance - Revenue from automotive products and services reached RMB 6 6 billion, up 9 6% YoY, with tire and chassis components contributing 42% of total revenue [1] - Car maintenance revenue was RMB 2 6 billion, up 11% YoY, contributing 37% of total revenue [1] - Other products and services revenue was RMB 380 million, up 4% YoY, with self-controlled and exclusive products accounting for 71 7% of total revenue, up 3 4 percentage points YoY [1] - The company's gross margin for tire and chassis components increased by 2 percentage points [1] Valuation and Forecast - The report forecasts adjusted net profit for 2024-2026 to be RMB 725 million, RMB 939 million, and RMB 1 17 billion, respectively, with a target price of HKD 24 based on a 25x PE multiple for 2024 [1] - The company's revenue growth is expected to be 8 0% in 2024, 8 6% in 2025, and 8 5% in 2026 [2] - Adjusted net profit growth is projected at 51% in 2024, 30% in 2025, and 25% in 2026 [2] Market Position and Competitive Advantage - Tuhu-W's competitive landscape is better than its overseas peers, with a strong presence in lower-tier cities and a high user repurchase rate [1] - The company's self-controlled and exclusive products account for 71 7% of total revenue, up 3 4 percentage points YoY, driving gross margin improvements [1] - Tuhu-W's MAU in transacting users contributes 54%, with a repurchase rate of 61 1%, indicating strong user loyalty [1]
途虎-W：2024年中报点评：利润率提升，客单价下降，公司不断提升竞争优势