Core Viewpoint - Tuhu's 1H25 earnings were solid despite industry challenges, with strong management capabilities likely to help it gain market share and mitigate short-term volatility [1]. Financial Performance - Tuhu's 1H25 revenue increased by 11% YoY to RMB7.9 billion, driven by a 14% YoY increase in the number of stores [2]. - The trailing 12-month number of transacting users rose by 24% YoY to 24 million as of June 30, 2025, indicating substantial market share growth [2]. - Gross margin for 1H25 was 25.2%, a 0.3 percentage point increase HoH, but 0.2 percentage points lower than forecasted due to lower margins in tires and chassis parts [2]. - Net profit for 1H25 rose by 8% YoY to RMB307 million, which was 3% lower than forecasted due to higher share-based payments [2]. - Adjusted net profit (excluding share-based payments) increased by 15% YoY to RMB410 million, exceeding forecasts by 11% [2]. Store Expansion and Operational Efficiency - Tuhu's store count increased by 331 to 7,205 as of June 30, 2025, on track to meet its full-year goal of 900 new stores [2]. - Approximately 90% of stores were profitable, with nearly all achieving positive cash flow in 1H25 [2]. - Positive free cash flow in 1H25 positions Tuhu favorably against peers amid industry headwinds [3]. Future Projections - FY25E revenue forecast was cut by 1%, and gross margin projection was reduced by 0.9 percentage points due to macro uncertainties and a focus on store expansion over short-term margin improvement [3]. - FY25E adjusted net profit forecasts were reduced by 8% to RMB761 million, reflecting a 22% YoY growth expectation [4]. - Revenue is projected to rise by 9% YoY in FY26E, supported by ongoing store expansion and customer acquisition efforts [4]. - Gross margin is expected to widen slightly to 25.9% in FY26E, with adjusted net profit projected to grow by 15% YoY to RMB876 million [4]. Valuation - The target price for Tuhu was raised from HK$21.50 to HK$23.00, based on a 20x adjusted FY26E P/E ratio [4].

Core Viewpoint - The automotive aftermarket presents a significant investment opportunity due to market saturation in other sectors like chain restaurants and beverage shops, with a focus on automotive repair and maintenance as a potential blue ocean market [3]. Market Overview - As of June 2025, the total number of vehicles in China is projected to reach 359 million, leading to a steady increase in the automotive service market size [4]. - The traditional 4S dealership model is declining, with over 4,400 dealerships closing last year, creating a more favorable environment for third-party repair services [4]. Company Performance - Tuhu's recent mid-year report for 2025 shows revenue of 7.88 billion yuan, a year-on-year increase of 10.5%, and an adjusted net profit growth of 14.6% [4]. - Tuhu has over 7,200 service centers and boasts a 90% profitability rate for stores operating for over six months, indicating strong financial performance for franchisees [4][15]. User Engagement - Tuhu's platform has seen a 23.8% increase in transaction users, reaching 26.5 million, with a customer satisfaction rate of 95% and a repurchase rate of 64% [10][11]. Standardization and Supply Chain - Tuhu addresses industry pain points through product and supply chain standardization, ensuring transparency and quality in parts sourcing [8][10]. - The company has implemented a data-driven supply chain model, achieving an 83% next-day delivery rate, enhancing operational efficiency [10]. Service Standardization - Tuhu has standardized service processes to improve service quality and reduce disputes, ensuring consistent customer experiences across locations [11]. Franchisee Success - Franchisees report stable profitability, with some achieving monthly gross profits of 120,000 to 130,000 yuan, supported by Tuhu's cost-reduction initiatives [15][17]. - The company has a growing number of franchisees, with many opening multiple locations, indicating strong market confidence [17].

Core Insights - The company, TuHu-W, reported a strong performance in the first half of 2025, with revenue reaching 7.88 billion RMB, a year-on-year increase of 10.5% [2] - The user base continued to grow rapidly, with registered users reaching 150 million, a year-on-year increase of 18.8% [2] - The company expanded its workshop network significantly, with a total of 7,205 service centers across 320 prefecture-level and 1,855 county-level administrative regions [2] Financial Performance - The adjusted net profit for the first half of 2025 was 410 million RMB, reflecting a year-on-year growth of 14.6% [2] - Total operating expenses were 1.77 billion RMB, accounting for 22.4% of revenue, showing continuous optimization compared to the same period in 2024 [4] - Free cash flow increased by 32.2% year-on-year, reaching 350 million RMB, with total cash reserves exceeding 7.5 billion RMB [4] User and Market Expansion - The company achieved a 64% user repurchase rate and maintained a service satisfaction rate exceeding 95% [2] - The number of transaction users over a 12-month period reached 26.5 million, a year-on-year increase of 23.8% [2] - The company’s fast repair business saw revenue growth exceeding 60% year-on-year, becoming a new growth driver [3] Supply Chain and Operational Efficiency - The company invested in supply chain automation, resulting in a 60% reduction in labor costs and a 2.5 times increase in efficiency compared to traditional warehousing [3] - The next-day delivery rate improved to 83%, while fulfillment cost rates decreased by 0.5 percentage points [3] - The company is piloting unmanned vehicle deliveries in cities like Nanjing and Chengdu, laying the groundwork for automated last-mile logistics [3] Strategic Initiatives - The company launched several support initiatives for franchise workshop stores, including "10 Billion Subsidy, 10,000 Stores Together" and "New Store Improvement Plan," which enhanced store operational vitality [3] - The company is focusing on fine-tuned operations and advanced technology investments to further improve operational quality and profitability [5]

Core Insights - The automotive aftermarket is facing significant challenges, including price gouging and a lack of trust among consumers, with a reported 5% decline in market value and a 4% drop in service visits in the first half of 2025 [1][3] - Despite the overall market downturn, Tuhu has achieved remarkable growth, reporting revenues of 7.88 billion and a user base of 150 million, while also winning a lawsuit against unfair competition [3][5] - Tuhu's success is attributed to its technological advancements, which have enabled it to provide high-quality products and standardized services, fostering trust with consumers [5][10] Industry Challenges - The automotive aftermarket is characterized by high prices and low trust, with significant markups on parts and services, leading to consumer dissatisfaction [1] - The industry is plagued by inefficiencies, with a vast number of SKUs (nearly 10 million) complicating the supply chain and making it difficult for consumers to find suitable parts [6][8] Tuhu's Competitive Advantage - Tuhu operates 7,205 service centers and has developed a comprehensive supply chain, including 32 regional warehouses and 662 front warehouses, enhancing its operational efficiency [8][10] - The company has built the largest and most accurate automotive parts database in China, covering 9.5 million SKUs with a matching accuracy of 99.99%, allowing for precise part identification [8][10] - Tuhu's digital supply chain, driven by real-time predictive algorithms, has significantly reduced inventory turnover times from an average of 60-150 days to around 30 days, benefiting consumers [10] Service Standardization - Tuhu has implemented a standardized service model through its "Blue Tiger System," which digitizes management processes and provides training for technicians, improving service quality and efficiency [11][13] - The company has achieved a user satisfaction rate of 95% and a repurchase rate of 64%, indicating strong consumer trust and loyalty [14]

Core Insights - Tuhu Car Service, a leading player in China's automotive service market, reported strong growth in its mid-year performance for 2025, with significant increases in revenue, user base, and service outlets [1][3]. Financial Performance - For the first half of 2025, Tuhu Car Service achieved a revenue of 7.88 billion yuan, representing a year-on-year growth of 10.5%, with a gross profit of 1.98 billion yuan and an adjusted net profit of 410 million yuan, up 14.6% year-on-year [1]. - The company's operating efficiency improved, with total operating expenses of 1.77 billion yuan, accounting for 22.4% of revenue, which is an optimization compared to the same period in 2024 [3]. User Growth and Engagement - As of June 30, 2025, Tuhu Car Service had 150 million registered users, a year-on-year increase of 18.8%, and 26.5 million active transaction users over the past 12 months, up 23.8% [1]. - The average monthly active users on the app reached 13.5 million, with a user repurchase rate of 64% and a service satisfaction rate exceeding 95% [1]. Expansion of Service Outlets - The number of Tuhu Car Service outlets reached 7,205, covering 320 prefecture-level and 1,855 county-level administrative regions, with a 70% coverage rate in counties with more than 20,000 passenger vehicles [1]. Strategic Initiatives - To enhance the competitiveness of franchise outlets, Tuhu Car Service increased support for franchisees, launching initiatives such as "10 Billion Subsidy, 10,000 Stores Together" and "New Store Improvement Plan," resulting in a more than 7% year-on-year growth in same-store user numbers [2]. - The company has also made significant investments in AI tools and supply chain automation, leading to a 60% reduction in labor costs and a 2.5 times increase in efficiency compared to traditional warehousing [2]. New Business Growth - The fast repair business saw a substantial year-on-year revenue increase of over 60%, becoming a new growth driver for the company [3]. - In the new energy sector, transaction users reached 3.4 million, a year-on-year increase of 83.5%, accounting for over 12% of total transaction users [3]. Cash Flow and Financial Health - Tuhu Car Service reported a free cash flow of 350 million yuan, a 32.2% increase compared to the same period last year, with total cash reserves exceeding 7.5 billion yuan, indicating strong financial health [3].

Core Viewpoint - Tuhu Car Service demonstrated strong growth in the first half of 2025, with significant increases in revenue and profit, despite challenges in the overall automotive aftermarket [1][2]. Financial Performance - In the first half of 2025, Tuhu achieved revenue of 7.88 billion yuan, a year-on-year increase of 10.5%, marking a return to double-digit growth [2]. - Adjusted net profit reached 410 million yuan, up 14.6% year-on-year, with a net profit margin of 5.2%, indicating improved operational efficiency [2]. - Free cash flow for the period was 350 million yuan, a substantial increase of 32.2%, with total cash reserves exceeding 7.5 billion yuan, providing a solid financial foundation for strategic initiatives [2]. User Growth and Engagement - Tuhu's registered user base surpassed 150 million, reflecting an 18.8% year-on-year growth, while the number of active transaction users reached 26.5 million, up 23.8% [2][3]. - The repurchase rate increased to 64%, and user satisfaction remained above 95%, indicating strong customer loyalty and service quality [3]. Market Expansion and Store Network - As of June 30, 2025, Tuhu operated 7,205 service stores, a net increase of 894 stores, covering 1,855 county-level administrative regions [3]. - The coverage rate in counties with over 20,000 passenger vehicles rose to 70%, showcasing Tuhu's penetration into lower-tier markets [3]. Technological Advancements - Tuhu has integrated AI and automation into its operations, enhancing customer service and supply chain efficiency [4]. - The implementation of an automated retail warehouse in Guangzhou has increased operational efficiency by 2.5 times compared to traditional warehouses, while reducing labor costs by 60% [4][5]. - The logistics delivery rate improved to 83%, with a reduction in fulfillment costs by 0.5 percentage points [5]. Business Segments and Growth Drivers - The fast repair segment saw revenue growth exceeding 60%, with some categories growing over 100%, driven by increased demand due to rising vehicle age [5]. - The new energy vehicle segment also experienced rapid growth, with transaction users increasing by 83.5% to 3.4 million, significantly above the industry average [5].

编辑 岳彩周 新京报贝壳财经讯（记者张冰）8月21日，途虎养车发布的2025年中期业绩报告显示，2025年上半年其 营业收入为78.8亿元，同比增长10.5%；经调整净利润4.1亿元，同比增长14.6%。 根据途虎养车公布的数据，截至2025年6月30日，途虎养车工场店达到7205家，通过深化下沉市场渗 透，对乘用车保有量在2万辆以上的县域覆盖率提升至70%；新能源业务布局深化，截至期末其新能源 交易用户数攀升至340万，同比增长83.5%，在平台总交易用户数中的占比超12%。 校对 柳宝庆 ...

Core Insights - Tuhu-W (9690) reported strong performance in the first half of 2025, maintaining its leading position in the Chinese automotive service market with significant growth in revenue, user base, and service stations [2][3]. Financial Performance - The company achieved a revenue of 7.88 billion RMB, a year-on-year increase of 10.5%, with an adjusted net profit of 410 million RMB, up 14.6% [2][4]. - Gross profit reached 1.98 billion RMB, indicating robust financial health [2]. - Free cash flow improved by 32.2% year-on-year, totaling 350 million RMB, with cash reserves exceeding 7.5 billion RMB [4]. User Growth and Engagement - As of June 30, 2025, Tuhu's registered user base reached 150 million, a growth of 18.8% year-on-year, with active transaction users increasing by 23.8% to 26.5 million [2][4]. - The average monthly active users on the app were 13.5 million, reflecting a 17.5% increase [2]. - User repurchase rate rose to 64%, and service satisfaction exceeded 95%, indicating strong customer loyalty [2]. Expansion and Market Penetration - Tuhu expanded its service station network to 7,205 locations across 320 prefecture-level and 1,855 county-level administrative regions, covering all provincial areas except Macau and Taiwan [2]. - The company enhanced its market penetration in counties with over 20,000 passenger vehicles, achieving a coverage rate of 70% [2]. Strategic Initiatives - Tuhu launched several support initiatives for franchise stores, including "10 Billion Subsidy, 10,000 Stores Together" and "New Store Improvement Plan," resulting in over 7% growth in same-store user numbers [3]. - The company invested in AI tools to enhance management efficiency and customer experience, leading to significant improvements in pre-sale conversion rates and customer satisfaction [3]. Supply Chain and Operational Efficiency - Tuhu's supply chain automation efforts included the launch of the first fully automated retail warehouse in Guangzhou, reducing labor costs by 60% and increasing efficiency to 2.5 times that of traditional warehousing [3]. - The next-day delivery rate improved to 83%, while fulfillment costs decreased by 0.5 percentage points [3]. New Business Growth - The fast repair service segment saw revenue growth exceeding 60% year-on-year, becoming a new growth driver for the company [4]. - In the new energy sector, transaction users increased by 83.5% to 3.4 million, representing over 12% of total transaction users [4]. Management Commentary - The CEO emphasized a consumer demand-driven approach and commitment to high-quality development despite external challenges [5]. - The CFO highlighted the acceleration of revenue growth and operational efficiency improvements, with plans for continued investment in refined operations and cutting-edge technology [5].

Core Insights - Tuhu-W (9690) reported strong performance in the first half of 2025, maintaining its leading position in the Chinese automotive service market with significant growth in revenue, user base, and service stations [1][3] Financial Performance - The company achieved a revenue of 7.88 billion RMB, a year-on-year increase of 10.5%, with an adjusted net profit of 410 million RMB, up 14.6% [1][5] - Operating expenses totaled 1.77 billion RMB, accounting for 22.4% of revenue, showing continuous optimization compared to the same period in 2024 [5][6] - Free cash flow increased by 32.2% to 350 million RMB, with total cash reserves exceeding 7.5 billion RMB, indicating strong financial health [6] User Growth and Market Share - As of June 30, 2025, Tuhu's registered user base reached 150 million, a growth of 18.8% year-on-year, with a total of 26.5 million active transaction users, up 23.8% [3][4] - The average monthly active users on the app reached 13.5 million, reflecting a 17.5% increase, while the user repurchase rate improved to 64% [3][4] Service Station Expansion - Tuhu expanded its service station network to 7,205 locations, covering 320 prefecture-level and 1,855 county-level administrative regions, achieving a 70% coverage rate in counties with over 20,000 passenger vehicles [3][4] AI and Supply Chain Innovations - The company enhanced its AI capabilities to improve management efficiency and customer service quality, resulting in significant improvements in pre-sales conversion rates and customer satisfaction [4] - Tuhu launched its first fully automated retail warehouse in Guangzhou, reducing labor costs by 60% and increasing efficiency to 2.5 times that of traditional warehousing [4] New Business Growth - The fast repair business saw a substantial revenue increase of over 60% year-on-year, driven by the growing demand for quick repair services as vehicle ages increase [4] - The number of users engaging in new energy transactions rose to 3.4 million, a remarkable growth of 83.5%, representing over 12% of total transaction users [4]

Group 1 - The company, Yuan Zheng Technology, repurchased 13,000 shares at an average price of HKD 11.48 per share, totaling approximately HKD 149,300, with a cumulative repurchase of 5.248 million shares this year, representing 3.29% of the total share capital [1] - The recent stock repurchase actions may indicate that the company believes its stock price is undervalued, aiming to signal positive market sentiment and enhance investor confidence [1] - Stock buybacks can also be utilized for employee incentive plans or to reduce the number of shares in circulation, thereby improving financial metrics such as earnings per share, which can enhance the company's market image and stabilize stock prices [1] Group 2 - Yuan Zheng Technology is a significant player in the automotive aftermarket sector, established in 1992 and headquartered in Shenzhen, China [2] - The company specializes in the research, development, production, and sales of automotive diagnostic, testing, and maintenance equipment, with a broad customer base globally [2] - Yuan Zheng Technology invests heavily in technological research and development, continuously launching innovative products to meet market demands, and holds a strong brand reputation within the industry [2]