Jinwu Financial News | According to the Morgan Stanley Research Report, according to data from independent automotive aftermarket (IAM) data provider F6 Auto, Tourover (09690) performed well in the aftermarket in December 2024. Retail sales increased 11% month-on-month, after-sales service units increased 5% month-on-month, which is stronger than seasonal performance, and average service prices (ASP) increased 2% year over year, which is consistent with Tourover's previous statement that store traffic and retail prices improved in the 3rd and 4th quarter of 2024.
The bank said that in the automotive aftermarket industry, the overall competitive landscape is complex and varied. On the one hand, the closure of 4S dealer stores will push car owners to switch to independent after-sales channels, bringing development opportunities to companies such as Tourover; on the other hand, the government's trade-in stimulus policy may reduce the number of old vehicles flowing to IAM stores, posing a certain challenge to their business growth. Industry enterprises need to continue to make efforts to improve service quality, expand customer resources, and optimize cost structures to cope with changes in market dynamics.
The bank believes that although Tourover's development still faces many risks, such as slow store expansion, lack of new users, lower than expected store revenue and deteriorating profit margins, etc., overall, it is cautiously optimistic about the future development of Tourover, giving it a target price of HK$24 and maintaining an “gain” rating.
