According to a research report released by Open Source Securities, maintaining the Tourover-W (09690) “buy” rating, the net profit for 2024-25 is expected to be 1,029/1,903 billion yuan, compared to 2,574 billion yuan in 2026. In 2023, the company achieved operating income of 13.601 billion yuan, adjusted EBITDA of 758 million yuan, and adjusted net profit of 482 million yuan, achieving full-year profit for the first time. By the end of 2023, Tourover had 115 million registered users, with more than 19.3 million transacting users throughout the year. In addition, a repurchase announcement was issued on March 15. The plan is to repurchase no more than HK$1 billion of common stock, fully demonstrating the management's confidence in the company's future performance.
The main views of Open Source Securities are as follows:
Years of accumulation eventually reached an inflection point in profit, and the scale effect opened up room for future growth
In 2023, Tourover's revenue from automotive products and services to personal terminal customers was 11.265 billion yuan, yoy +21.7%. Among them, the gross margin of tires and chassis parts increased by 3.3 pct, the gross margin of car maintenance increased by 2.8 pcts, and the gross margin of beauty maintenance increased by 3.9 pcts. In addition to cost dilution and the increase in upstream bargaining power brought about by scale effects, Tourover is also actively introducing more profitable exclusive products and self-controlled products, accounting for 42.4% and 25.9% of revenue in 2023, respectively. With innovative exploration and years of accumulation of online and offline integration models in the aftercar service market, Tourover successfully ushered in an inflection point in profit, and achieved the first time that adjusted EBITDA and adjusted net profit were turned into profits throughout the year. The logic of future profit growth will continue to strengthen.
Sinking the strategy to expand the store network layout and continue to explore new business formats in the industry
By the end of 2023, Tourover had 5,909 factory stores, an increase of 1,256 over the same period in 2022. Currently, the proportion of factory stores in second-tier cities and below is 57.9%. Tourover will firmly sink its strategy to explore the potential and opportunities in low-tier cities. At the same time, Tourover is also actively expanding its car maintenance business. Currently, it can expand to more than 41 maintenance categories such as three filters and spark plugs, and more than 8,000 SKUs. Fully develop new energy vehicle-related business upgrades, and completed 22,000 single-battery service orders in 2023, ranking first in the industry.