TUHU Car: Key takeaways from China Conference

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TUHU Car: Key takeaways from China Conference

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TUHU Car

Key takeaways from China Conference

Maintain Rating: BUY | PO: 18.00 HKD | Price: 13.59 HKD

Recent update: good 1Q growth, cost/price hike’s impact 12 May 2026

We hosted Tuhu’s Head of IR at our 2026 China Conference on 11 May. Management Equity

saw a good 1Q revenue growth (vs. industry was down YoY), and user growth remained

strong at double digit YoY. Due to US-Iran conflict and hence rising material costs, the

Key Changesauto aftermarket industry has started to experience price hikes by suppliers and brands.

Tuhu can manage the impact well because it has the capability to lock in supply and (CNY) Previous Current

price for 1H26, and it can pass through to customers afterwards. Regarding the potential 2028E EPS NA 1.31

impact over Tuhu’s financials, we expect upside risk to order value hence its revenue,

while neutral to its gross profit. Miranda Zhuang, CFA >>

Research Analyst

Merrill Lynch (Hong Kong)

+852 3508 2879Prioritize market share, improve cost efficiency, AI benefit miranda.zhuang@bofa.com

Management reiterates its near-term priority of market share gain. It sees ample room

to gain share in the large yet highly fragmented market, especially in lower-tired cities.

Management explains the net profit this year will be mainly affected by income tax.

While gross margin this year will be pressured, Tuhu intends to improve operating cost Stock Data

efficiency to keep a stable operating profitability. Regarding AI, Tuhu 1) does not see AI Price 13.59 HKD

disruption risk, given the auto aftermarket products and services need to be conducted Price Objective 18.00 HKD

offline; 2) is applying AI to benefit its operations including sales consultation, marketing, Date Established 22-Mar-2026