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].

Group 1 - The core viewpoint of the report maintains a "recommend" rating for Tuhu-W (09690), with adjusted net profit estimates for 2025-2027 at 8.09 billion, 9.92 billion, and 12.03 billion respectively, and a target price of 23.62 HKD [1] - The company achieved a revenue of 78.77 billion in the first half of 2025, representing a year-on-year growth of 10.5%, with a gross profit of 19.82 billion and a gross margin of 25.2% [1] - The revenue growth is attributed to the expansion of the store network and the contribution from high-growth businesses such as new energy and quick repair services, with core businesses like tires and automotive maintenance also showing approximately 11% year-on-year growth [1] Group 2 - The company's new energy service ecosystem is rapidly expanding, with platform users reaching 3.4 million, a year-on-year increase of 83.5%, and a penetration rate exceeding 12% [2] - The total number of stores has reached 7,205, covering 70% of counties with more than 20,000 passenger vehicles, indicating a strong presence in lower-tier markets [2] - User operations are being strengthened, with 26.5 million transaction users and a repurchase rate of 64%, showcasing significant ecological synergy [2] Group 3 - The company is enhancing efficiency through supply chain intelligence upgrades and AI technology, with automation warehouse efficiency in Guangzhou increasing by 2.5 times and the introduction of unmanned delivery vehicles [3] - The intelligent customer service system, based on the DeepSeek model, has improved pre-sale conversion rates by 2 percentage points while reducing labor costs by 18% [3] - The company is actively leveraging the "old-for-new" policy benefits, achieving a single-day sales record of over 1.5 billion during the 618 shopping festival [3]

Group 1 - The company maintains a "recommended" rating with projected adjusted net profits of 8.09 billion, 9.92 billion, and 12.03 billion for 2025-2027, and a target price of 23.62 HKD [1] - In the first half of 2025, the company achieved revenue of 78.77 billion, a year-on-year increase of 10.5%, with a gross profit of 19.82 billion and a gross margin of 25.2% [1] - The revenue growth is attributed to the expansion of the store network and contributions from high-growth sectors such as new energy and quick repair services [1] Group 2 - The company's new energy service ecosystem is rapidly expanding, with platform users reaching 3.4 million, a year-on-year increase of 83.5%, and a penetration rate exceeding 12% [2] - The total number of stores has reached 7,205, covering 70% of counties with more than 20,000 passenger vehicles [2] - User operations are being strengthened, with 26.5 million transaction users and a repurchase rate of 64% [2] Group 3 - The company is enhancing efficiency through supply chain intelligence upgrades and AI technology, significantly improving overall operational efficiency [3] - The automation warehouse efficiency in Guangzhou has increased by 2.5 times, and the introduction of unmanned delivery vehicles is underway [3] - The intelligent customer service system, based on the DeepSeek model, has improved pre-sale conversion rates by 2 percentage points while reducing labor costs by 18% [3]

Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expected outperformance of the benchmark index by 10%-20% over the next six months [12]. Core Insights - The company achieved a revenue of 7.877 billion yuan in the first half of 2025, representing a year-on-year growth of 10.5%. The gross profit was 1.982 billion yuan, with a gross margin of 25.2%, slightly down from the previous year [1][7]. - Adjusted net profit reached 410 million yuan, reflecting a year-on-year increase of 14.6%. The growth in revenue is attributed to the expansion of the store network and the contribution from high-growth segments such as new energy and quick repair services [7]. - The company has expanded its new energy service ecosystem, with 3.4 million users of electric vehicles, a year-on-year increase of 83.5%, and a penetration rate exceeding 12% [7]. - The report highlights the company's operational efficiency improvements, with total operating expense ratio decreasing year-on-year, and AI technology reducing customer service labor costs by 18% [7]. - The company is expected to achieve adjusted net profits of 809 million yuan, 992 million yuan, and 1.203 billion yuan for the years 2025, 2026, and 2027, respectively [7]. Financial Summary - For 2025, the company is projected to have total revenue of 16.478 billion yuan, with a year-on-year growth rate of 11.7% [3]. - The adjusted net profit for 2025 is estimated at 809 million yuan, with a growth rate of 31.6% compared to the previous year [3]. - The earnings per share (EPS) is forecasted to be 0.74 yuan for 2025, with a price-to-earnings (P/E) ratio of 23.8 [3][4].

Core Viewpoint - The automotive maintenance industry is experiencing significant growth alongside increasing market differentiation, with major players like Tuhu gaining competitive advantages over smaller repair shops [1][6]. Financial Performance - Tuhu achieved a revenue of 7.88 billion yuan in the first half of the year, 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% [3]. - The company's free cash flow reached 350 million yuan, a 32.2% increase compared to the same period last year, with total cash exceeding 7.5 billion yuan [3]. Market Expansion - As of June 30, Tuhu operated 7,205 service stations, an increase of 894 stations or 14.2% from the end of last year, indicating a rapid expansion strategy [4]. - The automotive maintenance market in China is projected to exceed 7 trillion yuan by 2025, with the maintenance sector expected to approach or surpass 2 trillion yuan [5]. Industry Differentiation - The industry is witnessing a stark divide, with large chains like Tuhu and Tmall Auto benefiting from brand strength and standardized services, while many small independent repair shops face survival challenges [6]. - According to F6 Big Data Research Institute, 54% of repair shops are expected to see a decline in vehicle visits in 2024, with 13% experiencing a drop of over 25% [6]. User Growth - Tuhu registered over 150 million users and 26.5 million transaction users in the first half of the year, marking increases of 18.8% and 23.8% respectively [8]. Strategic Initiatives - Tuhu is implementing support policies for both new and existing franchisees, including financial and operational assistance tailored to different market characteristics [10]. - The company is focusing on deep penetration into lower-tier markets, enhancing store profitability through digital tools and operational efficiency [11]. New Energy Vehicle (NEV) Focus - Tuhu's user base for NEVs reached 3.4 million, a growth of 83.5%, now accounting for over 12% of total transaction users [12]. - The company is expanding its services in NEV maintenance, including battery testing and repair services, anticipating a growing market for NEV after-sales services, projected to reach 300 billion yuan by 2025 [14].

Group 1 - The company reported a revenue of 7.9 billion yuan in the first half of 2025, representing a year-on-year growth of 10.5% [1] - Adjusted net profit reached 410 million yuan, with a year-on-year increase of 14.6% [1] - The gross margin for the first half of 2025 was 25.2%, slightly down by 0.7 percentage points due to a shift in consumer preference towards cost-effective products [1] Group 2 - As of the end of June, the company's total cash reserves amounted to 7.5 billion yuan [1] - The number of users for the company's new energy vehicle services reached 3.4 million, a year-on-year increase of 83.5%, accounting for 12% of total transaction users [1] - The company has enhanced its maintenance service capabilities for new energy vehicles by deepening its layout in tire maintenance, beauty services, and three-electric repairs [1] Group 3 - The CEO projected that over 3 million new energy vehicles will be out of warranty by the end of 2025, with this number expected to continue growing [2] - The company plans to leverage its existing service network and past maintenance experience to capture the high-growth, high-value commercial maintenance market for new energy users [2] - In the short term, the company will continue to expand its exclusive product line for new energy vehicles, enhancing the adaptability of services such as tire maintenance and battery care [2]