Jinwu Financial News | According to China Post Securities Research, in 2023, the number of Tourover (09690) factory stores reached 5,909, +1,256 over the same period. The company increased its factory store layout in low-tier cities and optimized the investment promotion policy in low-tier cities. The number of factory stores is expected to continue to grow rapidly. The company broadens service and SKU categories and accelerates revenue growth in the car maintenance business. Combined with the upward repurchase rate brought about by good reputation, it is expected that factory store revenue will continue to grow. The company has adapted to the trend of electrification, cooperated with many OEMs and power battery manufacturers, and made positive progress in the electric vehicle aftermarket.
According to the bank, the company's workstation turnover rate is rising, and improvements in product structure and business structure have helped the company's profit level to rise. In terms of product structure, the company strategically increases the share of its own self-controlled brands and exclusive brands. Since the gross margin of the two is higher than that of tradable products, the company is expected to drive an upward profit level; in terms of business structure, the company focuses on the development of car maintenance business with higher gross margin and is committed to expanding service and SKU categories to increase the share ratio; the turnover ratio of factory stores is expected to further increase, and the increase in the number of factory stores covered by single RDC and FDC is expected to further improve the company's profit level.
The bank continued that online+offline integration, strong factory and store control, and strong bargaining power granted by scale advantages build Tourover's core competitiveness. As an IAM leader, Tourover has product price advantages under scale effects, product quality and service standardization advantages under strong control, and the advantage of an online+offline integrated model. The bank believes that this is the core reason why Tourover can have strong competitiveness over a long period of time and promote the stable operation and profit of factory stores. The domestic automotive aftermarket pattern is scattered, and in the context of the continued expansion of Tourover factory stores, its market share is expected to continue to increase and accelerate the rise in market concentration.
The bank said it expects the company's 2024/2025/2026 revenue to be 155.27/178.46/20.317 billion, and net profit to mother of 7.02/11.27/1,707 million, corresponding to the current market capitalization PE of 29/18/13 times, and raised to a “buy” rating.