Huachuang Securities: Maintains "Recommended" rating for TUHU-W with a target price of HKD 23.62

According to the Zhitong Finance APP, Huachuang Securities released a research report stating that it maintains a "Recommended" rating for TUHU-W (09690), expecting the company's adjusted net profit for 2025-2027 to be 809 million / 992 million / 1.203 billion yuan, with a target price of HKD 23.62. Considering the current competitive environment in the domestic automotive aftermarket, which is "fragmented, chaotic, and small," TUHU is continuously strengthening its leading position in the industry through digital capabilities, standardized services, and supply chain advantages. In the first half of 2025, the company achieved revenue of 7.877 billion yuan, a year-on-year increase of 10.5%, with a gross profit of 1.982 billion yuan, a year-on-year increase of 7.4%, and a gross margin of 25.2%, achieving an adjusted net profit of 410 million yuan, a year-on-year increase of 14.6%. The main points of Huachuang Securities are as follows: Stable revenue growth and continuous improvement in profitability In the first half of 2025, the company achieved operating revenue of 7.9 billion yuan, a year-on-year increase of 10.5%, maintaining stable growth. The adjusted net profit reached 410 million yuan, a year-on-year increase of 14.6%, showing impressive growth. Revenue growth was mainly driven by the expansion of the store network and the contribution of high-growth businesses such as new energy and quick repair. By business segment, core businesses such as tires and chassis components, and automotive maintenance achieved approximately 11% year-on-year growth, demonstrating stability; the quick repair business saw revenue increase significantly by over 60% year-on-year, becoming an important growth engine. On the expense side, the company's operational efficiency has significantly improved, with the adjusted total operating expense ratio declining year-on-year, and AI technology enabling a reduction in customer service labor costs by 18% year-on-year, driving improvements in net profit margin. Synergistic efforts in new energy and lower-tier markets, continuously consolidating ecological advantages The company's new energy service ecosystem is rapidly expanding, with platform new energy vehicle users reaching 3.4 million, a year-on-year increase of 83.5%, and a penetration rate exceeding 12%. It has also launched differentiated products such as exclusive tires for new energy vehicles. The store network continues to penetrate deeper, with a total of 7,205 stores, covering 70% of counties with more than 20,000 passenger vehicles. User operations are continuously strengthened, with 26.5 million transaction users and a repurchase rate of 64%, showing significant ecological synergy effects. Supply chain and technology drive efficiency improvements The company has significantly enhanced overall efficiency through supply chain intelligent upgrades and comprehensive AI technology empowerment: the efficiency of the automated warehouse in Guangzhou has increased by over 2.5 times, and unmanned delivery vehicles have been implemented; the intelligent customer service system, transformed based on the DeepSeek large model, has improved the pre-sale conversion rate by 2 percentage points, with labor costs decreasing by 18%. At the same time, the company actively capitalizes on the "trade-in" policy benefits, with single-day sales during the 618 shopping festival exceeding 150 million yuan. Risk Warning: Industry competition intensifies beyond expectations, macroeconomic fluctuations and automotive sales volatility, new business expansion falling short of expectations, policy and regulatory changes