Core Viewpoint - Guosheng Securities initiates coverage on Tuhu-W (09690) with a "Buy" rating, highlighting Tuhu's leading position in the automotive aftermarket and its ongoing expansion of an integrated online and offline platform [1] Group 1: Company Performance - Tuhu has established itself as a leading online and offline integrated automotive service platform since its inception in 2011, building a nationwide service network and a comprehensive ecosystem [2] - The company has achieved profitability, with steady growth in revenue and net profit, and an improving gross margin, indicating strong cash flow [2] - The projected net profits for Tuhu from 2025 to 2027 are estimated at 647 million, 822 million, and 1.055 billion yuan, reflecting year-on-year growth rates of 33.75%, 26.96%, and 28.45% respectively [1] Group 2: Industry Trends - The automotive aftermarket is experiencing continuous demand growth driven by the increasing number of vehicles and aging vehicle structures in China [3] - The Independent Automotive Service channel (IAM) is gaining market share due to its cost-effectiveness, particularly for vehicles out of warranty, indicating a favorable market environment [3] - The rise in penetration of new energy vehicles is creating new service demands, with Tuhu strategically positioning itself to benefit from this growth by expanding its service offerings in this area [3] Group 3: Business Model and Strategy - Tuhu has built a robust online platform that attracts a large number of registered users and maintains high consumer engagement through digital tools for efficient service delivery [4] - The company employs a light-asset franchise model for offline expansion, establishing a standardized store management system to enhance operational efficiency and service quality [4] - Tuhu has developed a nationwide logistics system combining self-operated infrastructure and third-party service providers to ensure fulfillment capabilities, reinforcing its competitive edge in the market [4]

Group 1 - The core viewpoint is that Tuhu Car Maintenance has established a solid leading position in the automotive aftermarket industry, with strong certainty in performance growth due to its comprehensive service network and ecosystem since its establishment in 2011 [1] - The company has achieved profitability, with steady growth in revenue and net profit, an increasing gross margin, and good cash flow [1] - The automotive aftermarket demand is expanding due to the steady growth of car ownership and aging vehicle structures, with independent automotive service channels gaining market share [1] Group 2 - Tuhu has built a large store network through a light-asset franchise model, enhancing operational efficiency and coverage capabilities [2] - The company utilizes a standardized store management system and digital tools to improve customer experience and service efficiency [2] - Tuhu has developed a nationwide warehousing and logistics system to ensure fulfillment capabilities, reinforcing its competitive edge in the market [2] Group 3 - Investment forecasts for Tuhu's net profit from 2025 to 2027 are projected at 647 million, 822 million, and 1.055 billion yuan, with year-on-year growth rates of 33.75%, 26.96%, and 28.45% respectively [3] - The current corresponding market PE ratios are 18, 14, and 11 times for the respective years [3] - Given the strengthening of Tuhu's online ecosystem and the expansion of its offline store network, a "buy" rating is recommended for the company [3]