Core Viewpoint - Tuhu Car Maintenance reported a steady revenue growth of 10.5% year-on-year in the first half of 2025, driven by store network expansion and high-growth businesses such as new energy and quick repair services [1][2]. Group 1: Financial Performance - The company achieved a revenue of 7.877 billion yuan in the first half of 2025, with a gross profit of 1.982 billion yuan, resulting in a gross margin of 25.2% [1]. - Adjusted net profit reached 410 million yuan, reflecting a year-on-year increase of 14.6% [1]. - Core businesses, including tires and chassis components, as well as automotive maintenance, experienced approximately 11% year-on-year growth [1]. Group 2: Business Expansion and User Engagement - The platform's new energy vehicle user base expanded to 3.4 million, a year-on-year increase of 83.5%, with a penetration rate exceeding 12% [2]. - The total number of stores reached 7,205, achieving a 70% coverage rate in counties with over 20,000 passenger vehicles [2]. - The company has strengthened user operations, with 26.5 million transaction users and a repurchase rate of 64% [2]. Group 3: Operational Efficiency and Technological Advancements - The company enhanced operational efficiency through supply chain intelligence upgrades and AI technology, significantly improving overall efficiency [2]. - The automation warehouse in Guangzhou saw a 2.5-fold increase in efficiency, and the introduction of unmanned delivery vehicles was noted [2]. - The intelligent customer service system, based on the DeepSeek model, improved pre-sale conversion rates by 2 percentage points and reduced labor costs by 18% [2]. Group 4: Investment Outlook - In the context of a fragmented and competitive automotive aftermarket, Tuhu Car Maintenance is expected to maintain its leading position through digital capabilities, standardized services, and supply chain advantages [2]. - Projected adjusted net profits for 2025-2027 are estimated at 809 million yuan, 992 million yuan, and 1.203 billion yuan, respectively [2]. - The target price is set at 23.62 HKD, based on a 22x PE ratio for the adjusted net profit in 2025, maintaining a "recommended" rating [2].

Core Insights - Guangzhou Hengrui Automotive Maintenance Co., Ltd. has been established with a registered capital of 100,000 RMB [1] - The company’s business scope includes a wide range of automotive services and products, indicating a diversified approach in the automotive maintenance and sales industry [1] Business Scope - The company offers services such as motor vehicle repair and maintenance, car wash services, and vehicle inspection and testing services [1] - It engages in wholesale and retail of automotive parts, including new energy vehicle components and accessories [1] - The company is involved in the sales of electric vehicle charging services and battery components, reflecting a focus on new energy technologies [1] - Additional services include second-hand car sales, business agency services, and sales of automotive decorative products and smart in-car devices [1]

Core Viewpoint - Tuhu Car Service maintains its industry leadership in revenue, user scale, and number of service stations, demonstrating strong growth and operational efficiency in the first half of 2025 [4]. Financial Performance - In the first half of 2025, Tuhu reported revenue of 7.88 billion RMB, a year-on-year increase of 10.5%, with gross profit of 1.98 billion RMB and adjusted net profit of 410 million RMB, up 14.6% [6]. - The company's operating expenses totaled 1.77 billion RMB, accounting for 22.4% of revenue, showing continuous optimization compared to the same period in 2024 [10]. - Free cash flow reached 350 million RMB, a 32.2% increase year-on-year, with total cash reserves exceeding 7.5 billion RMB, indicating strong financial health [10]. User Growth and Engagement - As of June 30, 2025, Tuhu had 150 million registered users, a year-on-year growth of 18.8%, with 26.5 million active transaction users over the past 12 months, up 23.8% [6]. - The average monthly active users on the app reached 13.5 million, growing 17.5% year-on-year, while the user repurchase rate improved to 64% and service satisfaction exceeded 95% [6]. Expansion and Market Penetration - Tuhu's service stations increased to 7,205, covering all provincial-level administrative regions except for Macau and Taiwan, with a 70% coverage rate in counties with over 20,000 registered vehicles [8]. - The company has implemented various support measures for franchisees, resulting in a more than 7% year-on-year growth in same-store user numbers [8]. Technological Advancements - Tuhu has expanded its application of AI tools, enhancing management precision and service quality, leading to significant improvements in pre-sales conversion rates and customer satisfaction [8]. - The company invested in supply chain automation, achieving a 60% reduction in labor costs and a 2.5 times increase in efficiency compared to traditional warehousing [9]. New Business Growth - The fast repair business saw revenue growth exceeding 60% year-on-year, driven by the increasing demand due to the rising average age of passenger vehicles [9]. - Tuhu's focus on the new energy vehicle sector has resulted in a user base of 3.4 million, an 83.5% increase year-on-year, representing over 12% of total transaction users [9].

Core Insights - Tuhu reported a revenue of 7.88 billion RMB for the first half of 2025, marking a year-on-year growth of 10.5%, with an accelerated growth rate compared to the same period last year [1][2] - The adjusted net profit reached 410 million RMB, reflecting a year-on-year increase of 14.6% [1][2] Financial Performance - Revenue: 7.88 billion RMB, up 10.5% from 7.13 billion RMB in 2024 [2] - Gross Profit: 1.98 billion RMB, with a gross margin of 25.2%, compared to 1.85 billion RMB and 25.9% in 2024 [2] - Adjusted EBITDA: 483 million RMB, representing a 7.5% increase [2] - Operating Profit: 222 million RMB, with an operating margin of 2.8% [2] User Growth and Market Position - Registered users reached 150 million, a year-on-year increase of 18.8% [3] - The number of transaction users over the past 12 months was 26.5 million, up 23.8% [3] - Average monthly active users on the app were 13.5 million, reflecting a growth of 17.5% [3] - User repurchase rate improved to 64%, with service satisfaction exceeding 95% [3] Expansion and Strategic Initiatives - Tuhu expanded its workshop network to 7,205 locations, increasing coverage in counties with over 20,000 passenger vehicles to 70% [3] - The company invested in support for franchise stores, launching initiatives like "10 Billion Subsidy" and "New Store Enhancement Plan" to boost operational vitality [5] - AI tools were further integrated to enhance management precision and improve customer experience, leading to significant improvements in pre-sale conversion rates and customer satisfaction [5] Supply Chain and Logistics - Tuhu invested in supply chain automation, launching the first fully automated retail warehouse in Guangzhou, reducing labor costs by 60% and increasing efficiency by 2.5 times [7] - Logistics performance improved, with same-day and next-day delivery rates reaching 83% and fulfillment cost rates decreasing by 0.5 percentage points [7] - The fast repair business saw revenue growth exceeding 60%, becoming a new growth driver [7] New Energy Business - The number of transaction users in the new energy sector rose to 3.4 million, a year-on-year increase of 83.5%, accounting for over 12% of total transaction users [7] Management Commentary - The CEO emphasized a consumer demand-driven approach, focusing on service quality and core business to achieve high-quality development [7] - The CFO noted that revenue growth accelerated compared to the previous year, with continued leadership in store and user growth, and highlighted ongoing investments in operational efficiency and cutting-edge technology [7]

Core Viewpoint - The court ruled that the "Zhenhu Price" campaign by JD Auto constitutes unfair competition against Tuhu Auto, leading to Tuhu's victory in the lawsuit [1]. Group 1: Legal Proceedings - The Shanghai Minhang District People's Court found that the actions of the three defendants related to the "Zhenhu Price" promotional activities constituted unfair competition [1]. - Tuhu Auto filed a lawsuit against JD Auto, seeking to stop the alleged commercial defamation and false advertising, demanding the removal of related content and compensation of 5 million yuan [1]. Group 2: Marketing Strategies - JD Auto launched the "Zhenhu Price" low-price marketing campaign in mid-September 2023, claiming that all "Zhenhu Price" products would be 5% lower than competitors [1]. - The campaign frequently referenced "Zhenhu Price," which was widely interpreted as a direct attack on Tuhu Auto, despite not explicitly naming it [1]. Group 3: Industry Context - The dispute arose on the same day Tuhu Auto was listed on the Hong Kong Stock Exchange, highlighting the competitive dynamics in the automotive maintenance industry [1].

Core Insights - The domestic electric vehicle (EV) market in China is experiencing rapid growth, with production and sales reaching 5.699 million and 5.608 million units respectively in the first five months of 2025, marking a year-on-year increase of 45.2% and 44% [2] - The increasing number of EVs is creating significant opportunities in the aftermarket, prompting various players to accelerate their strategies to capture market share [2] - ExxonMobil's automotive maintenance service brand, Mobil 1, has reported substantial growth, with over 1,300 selected stores across 251 cities and a revenue increase of over 10% year-on-year [4] Industry Trends - The market share of EVs in new car sales has consistently exceeded 50% in recent months, although their representation in the aftermarket remains low due to the shorter average age of EVs [5] - Mobil 1 is proactively positioning itself in the EV market by launching a two-step strategy starting in 2024, focusing on tailored maintenance solutions for hybrid vehicles and expanding to a thousand stores [5] - The company has developed 33 specialized inspection items for EVs, building on traditional fuel vehicle standards, and plans to enhance this inspection system further [5] Product and Service Development - Mobil 1 has introduced new products such as EV transmission lubricants and cooling fluids, completing its core offerings for EV maintenance [6] - The company is collaborating with the China Automotive Maintenance Industry Association to establish the first group standard for "electric vehicle oil and fluid product service specifications," aiming to standardize maintenance processes in the EV aftermarket [6] Consumer Demand and Strategic Goals - Consumer demand for convenient, one-stop services remains strong, with expectations for reliable maintenance channels [7] - Mobil 1 aims to maintain a focus on professionalism in its EV strategy, enhancing product offerings, service capabilities, and industry standards [7] - The company recognizes the need for a consensus on EV maintenance across the industry and is committed to fostering a professional ecosystem in the next five years [7][8]

Core Viewpoint - The current challenges in the maintenance of electric vehicles (EVs) are primarily due to the monopolization of battery packs and software technology by automakers, leading to limited competition for third-party repair services [2][3]. Group 1: Industry Trends - The maintenance market for electric vehicles is expected to become more open and diversified as consumer demands for convenience increase, similar to the evolution seen in the fuel vehicle maintenance market [2][3]. - ExxonMobil's subsidiary, Mobil 1 Car Care, is planning to enhance its presence in the EV maintenance sector through specialized products, service upgrades, store development, and standardization efforts [2][4]. Group 2: Company Strategy - Mobil 1 Car Care aims to improve its brand influence in the EV maintenance market by incorporating new energy elements into its store image and offering specialized training for technicians [4]. - The company has announced a collaboration with the China Automotive Maintenance Industry Association to establish the first industry standard for "electric vehicle oil product service specifications," which will standardize maintenance procedures for EVs [4]. Group 3: Business Performance - Currently, the volume of EV-related services at Mobil 1 Car Care is relatively low, accounting for less than 10% of overall business, primarily focused on car washing and maintenance for hybrid models [4]. - As of the first quarter of this year, Mobil 1 Car Care has over 1,300 selected stores across 251 cities, with more than half of the vehicles serviced being mid-to-high-end models priced at 200,000 yuan and above [4]. Group 4: Future Expansion Plans - The company plans to continue expanding its store network, particularly in key cities, to enhance customer attraction and supply chain efficiency [5].

Core Viewpoint - Tuhu Car Maintenance has demonstrated strong growth and market leadership by expanding its store network and enhancing service quality, while also responding to consumer demand and government policies to stimulate consumption [1][6][7] Group 1: Store Expansion and Market Position - As of the end of 2024, Tuhu Car Maintenance has 6,874 service stores, an increase of 965 stores from the end of 2023, solidifying its position as an industry leader [1] - The company has achieved over 95% coverage in 318 prefecture-level administrative regions and 66% coverage in county-level regions with more than 20,000 passenger vehicles [2] - Tuhu aims to provide standardized, transparent, and professional automotive maintenance services in lower-tier cities, enhancing service accessibility for consumers [2] Group 2: Support for Offline Stores - In response to challenges in the automotive service industry, Tuhu has invested nearly 100 million yuan to support its offline stores [3][4] - The company increased its online and offline promotional spending by 250 million yuan compared to 2023, resulting in a 14% increase in average promotional expenses per store [5] - Tuhu's initiatives led to a more than 5% year-on-year increase in same-store user numbers, with over 90% of stores maintaining profitability by the end of 2024 [5] Group 3: Product and Service Quality Enhancement - Tuhu has focused on improving product diversity and quality, launching new products such as Bosch and Saudi Aramco-Shell motor oils, which have been well-received in the market [6] - The company has seen a 270% year-on-year increase in sales of hybrid motor oils, reflecting its adaptation to the growing market for hybrid vehicles [6] - Customer satisfaction exceeded 95% across the platform, with a 62.3% repurchase rate, an increase of 3 percentage points from 2023 [7] Group 4: Government Collaboration and Consumer Incentives - Tuhu has collaborated with local governments to implement consumer subsidy policies, including a trade-in voucher program for various product categories [7] - The company's efforts in aligning with national consumption promotion policies have positioned it as a model for enhancing supply quality and stimulating consumer demand in the automotive service market [7]