Report
EUR 88.49
For Business Accounts Only
Tuhu is an integrated online and offline platform for automotive services in China. Initially starting as a pure online retail platform, the firm has over time been building its offline network with well-managed stores and technicians to deliver standardized services in-store.
Tuhu’s business model aims to address the key pain points of the fragmented authorised dealership/IAM industry. Running on a franchisee-led model, it has also been able to scale its store network rapidly. Revenue has grown as a result of its increasing presence and a changing sales mix has led to overall gross margins improving.
However, the firm remains loss making with no signs of being profitable in the near/medium term given its aggressive growth strategy. While the franchise model makes Tuhu “asset-light”, it would likely have to ramp up marketing efforts for a successful expansion into the Tier 2 and other cities regions. Furthermore, it has also been racking up payables to increase CFO and its performance had not factored in the lockdowns in early 2022.
Tuhu Car Pre-IPO
Tuhu Car is looking to raise up to US$400m in its upcoming Hong Kong IPO.Tuhu is an integrated online and offline platform for automotive services in China. Initially starting as a pure online retail platform, the firm has over time been building its offline network with well-managed stores and technicians to deliver standardized services in-store.
Tuhu’s business model aims to address the key pain points of the fragmented authorised dealership/IAM industry. Running on a franchisee-led model, it has also been able to scale its store network rapidly. Revenue has grown as a result of its increasing presence and a changing sales mix has led to overall gross margins improving.
However, the firm remains loss making with no signs of being profitable in the near/medium term given its aggressive growth strategy. While the franchise model makes Tuhu “asset-light”, it would likely have to ramp up marketing efforts for a successful expansion into the Tier 2 and other cities regions. Furthermore, it has also been racking up payables to increase CFO and its performance had not factored in the lockdowns in early 2022.
Underlying
Tuhu Car
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Clarence Chu
Other Reports on these Companies
Other Reports from Aequitas Research
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.