Near-term confidence reiterated; longer-term overseas potential unfolding

Research evidence excerpt

Near-term confidence reiterated; longer-term overseas potential unfolding

Forecast returns

Forecast price appreciation 27.0%

Forecast dividend yield 5.7%

Forecast stock return 32.7%

Market return assumption 11.1%

Forecast excess return 21.6%

Company Description

Founded in 2011, ATRenew is a leading technology-driven recycling and trade-in platform for

pre-owned consumer products in China, with a core focus on consumer electronics. The

company covers the full value chain from consumer sourcing, standardized inspection,

grading and pricing, to redistribution through PJT Marketplace, Paipai Marketplace, AHS

platforms and other channels. In 2025, AtRenew generated total net revenue of Rmb21bn, of

which net product revenue accounted for 92% of total revenue, while net service revenue

contributed 8%.

Valuation Method and Risk Statement

We derive our price target for ATRenew from DCF methodology.

Downside risks to our forecasts include: 1) slower-than-expected penetration increase of

consumer electronics recycling and trade-in, which could potentially weigh on the supply side

of secondhand consumer electronics markets and ATRenew’s recycle volume and revenue

growth; 2) in the case of significant correction prices of memory and new consumer

electronics devices, consumer may have less incentives to choose secondhand products,

leading to a negative impact on industry demand; 3) intensified competition in the

secondhand consumer electronics industry, from existing B2C/B2B competitors, C2C

platforms and new entrance, leading to pressure on ATRenew’s volume growth and take rate;

4) change of current collaboration with JD and Apple, which could weaken ATRenew’s

position at recycling end, especially for high-end products; 5) failure to continuing expanding