TUHU Car Inc. Class A (9690) AI Stock Analysis

• Market Cap: HK$14.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 4,491
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Parts
• EPS (TTM): 0.64
• Shares Outstanding: 752,738,300
• 10 Day Avg. Volume: 1,161,448
• 30 Day Avg. Volume: 1,157,185
• PEG Ratio: -0.31
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$21.20
• Price Target Upside: 14.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

TUHU Car Inc.'s stock is supported by strong financial performance, with significant improvements in profitability and cash flow management. The technical analysis suggests a neutral momentum, while the valuation indicates a moderate price level. The company's past financial instability is a concern, but the current trends point to a promising future. The absence of dividends and lack of guidance from recent earnings calls slightly dampen the outlook.

Positive Factors

Market Trends

The company is poised to benefit from key trends like growing vehicle ages, consumption downgrade, and the shift toward online purchasing among younger consumers.

Profitability

The profitability of Tuhu’s franchised stores has been better than most auto after-market peers, with more than 90% of Tuhu’s stores operating for over six months making profits.

Negative Factors

Sales Performance

The 2H24 adjusted net profit is projected to fall 9% YoY, indicating weaker-than-expected sales.

Valuation Adjustment

The target price has been cut from HK$26.00 to HK$20.00, reflecting adjustments in valuation expectations.

TUHU Car Inc. Class A Business Overview & Revenue Model

Company Description

TUHU Car Inc. Class A (9690) is a leading automotive services platform in China, specializing in providing comprehensive car maintenance and repair services. The company operates through an extensive network of service centers and partners with various automotive parts suppliers to offer a wide range of services, including tire replacements, oil changes, brake repairs, and other vehicle maintenance needs. TUHU Car Inc. leverages technology to enhance customer experience and streamline operations, positioning itself as a key player in the automotive after-sales service industry.

How the Company Makes Money

TUHU Car Inc. generates revenue primarily through its service offerings at owned and franchised service centers, where customers pay for vehicle maintenance and repair services. The company also earns money by partnering with third-party automotive parts suppliers, which allows it to provide a wide array of parts and accessories to its customers, often earning a commission or margin on these sales. Additionally, TUHU Car Inc. may generate income through its digital platform by offering value-added services and subscription-based models for regular vehicle maintenance. Strategic partnerships with automotive brands and suppliers enhance its revenue streams and market reach.

TUHU Car Inc. Class A Financial Statement Overview

Summary

TUHU Car Inc. has shown remarkable financial recovery and growth over the years. The company improved its profitability with better margins and turned profitable in 2024. The balance sheet is now stronger with reduced leverage and positive equity. Cash flows are robust, showcasing improved cash management and operational efficiency. While historical financial instability is a concern, the current trajectory indicates a positive outlook.

Income Statement

TUHU Car Inc. has demonstrated a significant improvement in profitability over the years. The Gross Profit Margin improved from 7.43% in 2019 to 25.38% in 2024, indicating better cost management and pricing strategies. The company turned profitable in 2024 with a Net Profit Margin of 3.28%, a substantial recovery from negative margins in previous years. Revenue Growth Rate was 8.49% in 2024, showing a steady upward trend from 2020. EBIT and EBITDA Margins also improved, reflecting operational improvements.

Balance Sheet

The Debt-to-Equity ratio is favorable in 2024 with a low leverage of 0.06, indicating a solid financial structure. Return on Equity (ROE) turned positive to 9.95% in 2024, showing effective utilization of equity. The Equity Ratio improved to 38.00% in 2024, indicating a healthier balance sheet compared to prior years with negative equity. However, previous years showed high liabilities and negative equity, posing historical financial stability concerns.

Cash Flow

TUHU Car Inc. showed strong cash flow management with Operating Cash Flow increasing to 1,319.18 million in 2024. Free Cash Flow Growth Rate was significant due to the turnaround from negative cash flows in 2020 to positive in 2024. The Operating Cash Flow to Net Income Ratio indicates robust cash generation relative to profit. The Free Cash Flow to Net Income Ratio also improved, showing effective cash utilization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.76B	13.60B	11.55B	11.72B	8.75B
	Gross Profit
3.75B	3.36B	2.27B	1.87B	1.08B
	EBIT
331.03M	161.52M	-763.92M	-1.31B	-912.87M
	EBITDA
480.03M	7.11B	-1.72B	-5.45B	-3.61B
	Net Income Common Stockholders
483.79M	6.70B	-2.14B	-5.84B	-3.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.55B	4.41B	2.71B	1.79B	1.86B
	Total Assets
12.80B	11.76B	9.01B	9.83B	9.03B
	Total Debt
311.94M	364.67M	2.65B	2.84B	4.40B
	Net Debt
-1.06B	-2.35B	-34.78M	1.36B	3.24B
	Total Liabilities
7.94B	7.31B	27.97B	25.20B	18.94B
	Stockholders Equity
4.86B	4.46B	-18.96B	-15.37B	-9.91B
Cash Flow		Free Cash Flow
997.52M	659.30M	-713.36M	-445.58M	163.01M
	Operating Cash Flow
1.32B	1.02B	-312.71M	-98.75M	331.28M
	Investing Cash Flow
-2.43B	-2.37B	481.35M	-917.97M	570.81M
	Financing Cash Flow
-240.97M	1.35B	935.98M	1.41B	-1.04B

TUHU Car Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9690, the sentiment is Positive. The current price of 18.54 is above the 20-day moving average (MA) of 17.45, above the 50-day MA of 17.46, and above the 200-day MA of 18.46, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 77.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9690.

TUHU Car Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1211	72 Outperform	$1.25T	24.93	23.91%	0.81%	33.89%	45.52%
9690	67 Neutral	HK$14.06B	29.06		―	―	―
Sector *	61 Neutral	$6.99B	11.27	2.81%	3.90%	2.61%	-21.77%
1114	61 Neutral	HK$15.03B	4.44	8.00%	―	-3.96%	-60.66%
9923	60 Neutral	HK$3.70B	35.74	3.07%	―	-23.46%	358.07%
2038	49 Neutral	$6.74B	―	-1.35%	―	-11.86%	83.17%
3800	32 Underperform	$23.64B	―	-11.91%	―	-56.32%	-272.70%

TUHU Car Inc. Class A Corporate Events

TUHU Car Inc. Schedules 2025 Annual General Meeting with Key Resolutions

TUHU Car Inc. has announced its upcoming annual general meeting to be held on June 6, 2025, in Shanghai, China. The agenda includes receiving financial statements, re-electing directors, authorizing director remuneration, re-appointing Ernst & Young as auditors, and considering resolutions related to share purchases and issuance. These resolutions, if approved, could impact the company’s share capital and governance structure, potentially affecting shareholder influence and market positioning.

The most recent analyst rating on (HK:9690) stock is a Sell with a HK$13.50 price target. To see the full list of analyst forecasts on TUHU Car Inc. Class A stock, see the HK:9690 Stock Forecast page.

TUHU Car Inc. Reports 2024 Financial Results: Revenue Up, Profit Down

TUHU Car Inc. announced its audited consolidated financial results for the year ending December 31, 2024, showing a revenue increase of 8.5% compared to 2023. Despite the revenue growth, the profit for the year significantly dropped by 92.8%, highlighting challenges in profitability. The company’s operating profit more than doubled, indicating operational improvements, but the drastic fall in profit suggests potential issues that stakeholders need to consider.

TUHU Car Inc. Schedules Board Meeting to Discuss Annual Results

TUHU Car Inc. has announced a board meeting scheduled for March 20, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Tuhu Car Inc. Strengthens Market Position with Strategic Share Purchase

Tuhu Car Inc. announced the purchase of 11,284,400 Class A Shares under its Second Post-IPO Share Scheme, representing approximately 1.38% of its issued share capital and 34.2% of the scheme mandate limit. This move, funded by internal resources, reflects the company’s confidence in its business outlook and serves as a strategy to attract talent and align employee interests with the company’s long-term growth objectives.