Jingu financial news | Soochow Securities issued a research report, stating that the advantage of Tuhu (09690) in product cost-effectiveness is further highlighted due to store expansion. The bank expects its market share to increase further in the first half of 2024, with revenue growth rate higher than large cap, and the number of stores exceeding 6,310.
The bank expects the company's revenue to increase by 10% YoY to 7.16 billion yuan in the first half of 2024, and net income and net margin to increase by 56% YoY to 0.33 billion yuan and 1.4% respectively after adjustment.
The bank continues to believe that although the demand for car services is weaker than expected, the company's profitability is better than expected, and maintains a forecast of adjusted net income of 736/1228/1777 billion yuan for 2024-2026, corresponding to 18/11/8 times PE, while maintaining a "buy" rating.