Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Insights - The company achieved a revenue of 7.877 billion yuan in H1 2025, representing a year-on-year increase of 10.54%, and an adjusted net profit of 410 million yuan, up 14.6% year-on-year [1]. - The company is expanding its presence in lower-tier cities, with a coverage rate of 70% in counties with over 20,000 passenger vehicles, and a total of 7,205 stores, of which 90% of existing stores are profitable [2]. - The company’s supply chain and logistics efficiency have improved, with a reduction in fulfillment costs and enhanced warehouse efficiency [4]. - The new energy business is emerging as a second growth curve, with a significant increase in transaction users and penetration rates [5]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 7.877 billion yuan, a 10.54% increase year-on-year, and an adjusted net profit of 410 million yuan, reflecting a 14.6% growth [1]. - The gross profit was 1.982 billion yuan, with a gross margin of 25.2%, slightly down by 0.7 percentage points year-on-year [1]. Market Expansion - The company has successfully penetrated lower-tier cities, achieving a 70% coverage rate in counties with over 20,000 passenger vehicles, and has opened 331 new stores, with over 60% located in these cities [2]. - The registered user base reached 150 million, an 18.8% increase year-on-year, with active monthly users at 13.5 million, up 17.5% [2]. Business Segments - The tire and chassis parts segment generated 3.285 billion yuan in revenue, a 10.5% increase year-on-year, while the automotive maintenance segment saw revenue of 2.907 billion yuan, up 11.1% [3]. - The new energy segment reported a transaction user count of 3.4 million, an 83.5% increase year-on-year, indicating strong growth potential [5]. Operational Efficiency - The company has optimized its supply chain with 258 self-operated delivery routes connecting 32 regional warehouses, resulting in a year-on-year decrease in fulfillment costs [4]. - A new automated warehouse in Guangzhou has improved operational efficiency by 2.5 times while reducing labor costs by 60% [4].

Core Viewpoint - Tuhu Car Service reported a revenue of 7.88 billion yuan for the first half of 2025, reflecting a year-on-year growth of 10.5%, with adjusted net profit reaching 410 million yuan, up 14.6% year-on-year, indicating strong market competitiveness and profit growth potential, maintaining a "strong buy" investment rating [1] Revenue Performance - The company's revenue for H1 2025 was 7.88 billion yuan, with automotive products and services contributing 7.36 billion yuan, a year-on-year increase of 10.8% [1] - Revenue from tires, chassis components, and automotive repair segments grew by 10.8%, driven by enhanced online marketing and expansion of Tuhu's workshop network [1] - Revenue from other products and services increased by 16.1%, primarily due to higher contributions from car cleaning and beauty services [1] - Advertising, franchise, and other service revenues amounted to 515 million yuan, up 6.6% year-on-year [1] Store Network and User Growth - As of H1 2025, Tuhu's workshop count reached 7,205, a net increase of 894 stores, representing a 14% year-on-year growth [2] - The coverage rate in counties with over 20,000 passenger vehicles increased to 70%, up 5 percentage points year-on-year, with over 60% of new stores located in second-tier and lower cities [2] - The number of active users on the Tuhu app reached 26.5 million, a year-on-year increase of 23.8%, with average monthly active users at 13.5 million, up 17.5% [2] Profitability and Margin Analysis - The gross margin for H1 2025 was 25.2%, a decrease of 0.7 percentage points year-on-year, attributed to increased price sensitivity among consumers and external factors such as tariffs [3] - Adjusted net profit of 410 million yuan exceeded market expectations, reflecting a 14.6% year-on-year increase [3] - Long-term profit growth potential is supported by steady store expansion and operational efficiency improvements, with projected adjusted net profits of 786 million, 899 million, and 1.05 billion yuan for 2025-2027 [3]

Core Viewpoint - The company is experiencing a recovery in same-store sales and anticipates an improvement in gross margin in the second half of the year [1] Group 1: Financial Performance - The company maintains a "buy" rating, forecasting revenues of 16.3 billion, 18.1 billion, and 20.0 billion yuan for 2025-2027, representing year-on-year growth of 10.8%, 10.7%, and 10.3% respectively [1] - Adjusted net profits are projected to be 774 million, 972 million, and 1.123 billion yuan for 2025-2027, with year-on-year growth of 24.0%, 25.6%, and 15.5% respectively [1] - For the first half of 2025, revenue reached 7.877 billion yuan, a year-on-year increase of 10.5%, with a gross profit of 1.982 billion yuan, up 7.4% year-on-year [1] Group 2: Operational Metrics - The number of stores increased to 7,205 in the first half of 2025, with a net addition of 331 stores, reflecting a year-on-year growth of 14.2% [2] - Average revenue per store decreased by 4% year-on-year in the first half of 2025, an improvement from a 10% decline in 2024 [2] - The number of transaction users reached 26.5 million, representing a year-on-year increase of 23.8% [2] Group 3: Margin and Cost Structure - The gross margin for the first half of 2025 was 25.2%, down 0.7 percentage points year-on-year, primarily due to a decline in the gross margin of tires and chassis components [2] - Despite increased sales volumes in chassis components and repair services, consumer preference shifted towards more cost-effective products, leading to lower average transaction values [2] - Adjusted sales expense ratio increased by 0.1 percentage points year-on-year, while operational and support expenses decreased by 0.3 percentage points [2]

Core Viewpoint - The company achieved a revenue of 7.88 billion yuan in H1 2025, representing a year-on-year increase of 10.5%, and a net profit of 310 million yuan, up 7.8% year-on-year, with adjusted net profit reaching 410 million yuan, reflecting a 14.6% increase year-on-year [1] Group 1: Financial Performance - In H1 2025, the company's adjusted net profit margin was 5.2%, an increase of 0.2 percentage points year-on-year [1] - The gross profit margin for H1 2025 was 25.2%, a decrease of 0.7 percentage points year-on-year, primarily due to a shift in consumer preference towards cost-effective products [2] - Operating profit margin slightly decreased to 2.8% year-on-year, but improved by 1.3 percentage points compared to H2 2024, indicating stable overall profitability [2] Group 2: Business Expansion and User Growth - As of June 30, 2025, the company expanded its store network to 7,205 locations, a net increase of 331 stores from the beginning of the year, with over 60% of new stores located in second-tier and lower-tier cities [1] - The total number of transaction users reached 26.5 million, a year-on-year growth of 23.8%, maintaining a user satisfaction rate of 95% and a repurchase rate of 64% [1] - The company is accelerating its penetration in the new energy sector, with over 12% of total users on the platform being new energy transaction users, surpassing the industry penetration rate [1] Group 3: Revenue Breakdown - Revenue from tires and chassis components in H1 2025 was 3.29 billion yuan, up 10.5% year-on-year, driven by optimized online promotion and store network expansion [1] - Revenue from automotive maintenance reached 2.91 billion yuan, an increase of 11.1% year-on-year, supported by the growing average age of passenger vehicles and enhanced customer loyalty [1] - Revenue from other products and services, including cleaning and maintenance, was 1.26 billion yuan, reflecting a year-on-year increase of 16.1%, driven by the introduction of cleaning and beauty services in more stores [1] Group 4: Investment Outlook - The company adjusted its net profit forecasts for 2025-2026 from 806 million yuan and 1.021 billion yuan to 753 million yuan and 860 million yuan, respectively, while adding a forecast of 953 million yuan for 2027 [2] - The company maintains a long-term growth potential and investment opportunities, with a "buy" rating upheld [2]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][3]. Core Views - The company achieved a revenue of 7.88 billion yuan in the first half of 2025, representing a year-on-year growth of 10.5%, and an adjusted net profit of 410 million yuan, up 14.6% year-on-year, indicating robust revenue growth and profit exceeding expectations [2][6]. - The long-term profit growth potential is viewed positively due to the company's solid market competitiveness and ongoing expansion of its store network [2][6]. Financial Performance Summary - Revenue projections for the company are as follows: - 2023: 13.601 billion yuan - 2024: 14.759 billion yuan (growth of 8.5%) - 2025E: 16.364 billion yuan (growth of 10.9%) - 2026E: 17.737 billion yuan (growth of 8.4%) - 2027E: 19.106 billion yuan (growth of 7.7%) [3][8]. - Adjusted net profit estimates are: - 2023: 481 million yuan - 2024: 624 million yuan (growth of 29.7%) - 2025E: 786 million yuan (growth of 25.9%) - 2026E: 899 million yuan (growth of 14.4%) - 2027E: 1.051 billion yuan (growth of 16.9%) [3][8]. - The company’s earnings per share (Non-GAAP) are projected to be: - 2023: 0.59 yuan - 2024: 0.76 yuan - 2025E: 0.96 yuan - 2026E: 1.10 yuan - 2027E: 1.28 yuan [3][9]. Market Position and Expansion - As of the first half of 2025, the company has expanded its store network to 7,205 locations, a net increase of 894 stores year-on-year, with a coverage rate of 70% in counties with over 20,000 passenger vehicles [6][8]. - The company has seen a 23.8% year-on-year increase in transaction users on its app, reaching 26.5 million, with an average monthly active user count of 13.5 million, up 17.5% year-on-year [6][8]. Valuation - The target valuation for the company is set at 26.3 HKD per share, with the current stock price at 20.74 HKD [3][4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in the first half of 2025 met expectations, with a focus on increasing market share despite a challenging market environment [2][3] - The company achieved revenue of 7.88 billion yuan in H1 2025, representing a year-on-year growth of 10.5% [10] - The company is expected to continue benefiting from its standardized services and cost-effective products, leading to sustained growth in market share [3] Revenue and Profitability - Total revenue projections for the company are as follows: 13.606 billion yuan in 2023, 14.759 billion yuan in 2024, 16.284 billion yuan in 2025, 17.926 billion yuan in 2026, and 19.658 billion yuan in 2027, with year-on-year growth rates of 17.67%, 8.47%, 10.34%, 10.08%, and 9.66% respectively [1] - The net profit attributable to the parent company is projected to be 6.703 billion yuan in 2023, 483.79 million yuan in 2024, 545.87 million yuan in 2025, 653.23 million yuan in 2026, and 747.03 million yuan in 2027, with significant fluctuations in growth rates [1] - The company's gross margin for H1 2025 was 25.2%, slightly down by 0.7 percentage points year-on-year, primarily due to a shift in consumer preference towards cost-effective products [4] Market Expansion and User Growth - The company expanded its store network to 7,205 locations by June 30, 2025, a net increase of 331 stores from the beginning of the year, with over 60% of new stores located in second-tier and lower-tier cities [10] - The total number of transaction users reached 26.5 million, a year-on-year increase of 23.8%, maintaining a user satisfaction rate of 95% and a repurchase rate of 64% [10] Financial Forecasts - Adjusted net profit forecasts for 2025 and 2026 have been revised to 7.53 billion yuan and 8.60 billion yuan respectively, with a new forecast for 2027 set at 9.53 billion yuan [11] - The company is expected to maintain a stable long-term growth outlook, with a price-to-earnings ratio projected at 21, 18, and 16 times for 2025, 2026, and 2027 respectively [11]