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].
途虎-W：科技赋能汽车服务