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].
2023年年度业绩点评：盈利渐具规模效应，回购彰显长期信心