2025-07-23 02:42Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the China Internet sector, specifically the auto classified platforms Tuhu Car and Autohome, highlighting their performance and market dynamics in the automotive aftermarket. Company Insights Tuhu Car (9690.HK) - Market Position: Tuhu Car is recognized as the largest independent automotive aftermarket provider in China, with a significant lead in the market as of 1H25 [4][50]. - User Growth: Tuhu Car's monthly active users (MAUs) grew by 19% year-over-year (yoy) in 2Q25, reaching 15.4 million, outperforming competitors like JD and Tmall [4][14]. - Revenue Growth: Expected revenue growth of 11% yoy in 1H25, driven by increased order volume and positive same-store sales growth (SSSG) [4][24]. - Profitability: Projected 21% yoy net profit growth in 2025, attributed to eased pricing pressure and operational efficiency gains from AI [4][24]. - Offline Expansion: Tuhu plans to expand its workshop count by 15% yoy, reaching approximately 7,278 workshops by June 2025 [4][16]. - Target Price: The target price for Tuhu Car is revised to HK$21.9, reflecting a 10% implied upside [25][51]. Autohome (ATHM/2518.HK) - Revenue Outlook: Autohome is expected to see a 7% yoy decline in revenue for 2Q25, with media and lead generation revenues shrinking by 26% and 10% yoy, respectively [30][31]. - Emerging Revenue Driver: Autohome Space is identified as a new revenue driver, with projected revenue growth of 2.2x yoy in 2025, contributing 11% to total revenue [30][32]. - Dividend Concerns: The company has not announced an interim cash dividend for 2025, which may indicate a delay in dividend payouts due to pending regulatory approvals for a change in controlling shareholder [30][35]. - Target Price: The target price remains at US$26/HK$51, with a neutral rating reflecting a balanced risk-reward outlook [34][49]. Key Market Dynamics - Industry Challenges: Autohome faces headwinds from reduced OEM marketing budgets and competition from pan-internet platforms, impacting its media services revenue [30][31]. - Market Consolidation: The number of registered auto repair stores has significantly decreased, indicating ongoing consolidation in the industry [21]. - Consumer Trends: The automotive aftermarket is experiencing shifts in consumer demand, with a focus on digital solutions and operational efficiency [50]. Financial Metrics - Tuhu Car Financials: For 1H25, Tuhu Car is projected to achieve revenues of Rmb7.9 billion and an adjusted net profit of Rmb341 million, with a net profit margin of 4.3% [24][27]. - Autohome Financials: Autohome's expected revenue for 2Q25 is Rmb1.75 billion, with a non-GAAP net profit of Rmb465 million and a net profit margin of 26.6% [30][45]. Conclusion - Tuhu Car is positioned for strong growth and market consolidation, while Autohome faces challenges but has potential growth avenues through its new service offerings. Both companies reflect the evolving landscape of the automotive aftermarket in China, with varying prospects for investors.