Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuhu-car-inc" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (9690 HK)</a> is poised to capture the lion share of China's automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. </li>
<li>Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    </li>
<li>Our fair value of HKD24 implies 25x FY25 PE - average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.</li>
</ul>



Tuhu Car (9690 HK) is poised to capture the lion share of China's automotive aftersales service industry that is forecasted to grow at 7.3% CAGR from 2023:30. 
Tuhu is on an inflection of high earnings growth (+30% CAGR) as it has reached scalability, cost efficiency, and its younger shops are maturing profitably.    
Our fair value of HKD24 implies 25x FY25 PE - average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.


Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuhu-car" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (2007986D HK)</a>, a leading integrated online and offline platform for automotive service in China, has launched its HKEx IPO at a price range of HK$28.00-31.00 per share.</li>
<li>In <strong><em><a href="https://www.smartkarma.com/insights/tuhu-car-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:112644" rel="noopener">TUHU Car IPO: The Investment Case</a></em></strong>, we highlighted the key elements of the investment case. In this note, we present our forecasts and discuss valuation.</li>
<li>Our valuation analysis suggests that Tuhu is reasonably priced at the IPO price range. We would participate in the IPO. </li>
</ul>



Tuhu Car (2007986D HK), a leading integrated online and offline platform for automotive service in China, has launched its HKEx IPO at a price range of HK$28.00-31.00 per share.
In TUHU Car IPO: The Investment Case, we highlighted the key elements of the investment case. In this note, we present our forecasts and discuss valuation.
Our valuation analysis suggests that Tuhu is reasonably priced at the IPO price range. We would participate in the IPO. 


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>O’Reilly Automotive managed to exceed the revenue as well as earnings expectations of Wall Street driven by strength in consumption and a robust increase of 16% in diluted earnings per share.</li><li>Strength in the ticket count comps, particularly in the company’s professional business was a great contributor to the outperformance.</li><li>We give O’Reilly Automotive a ‘Hold’ rating with a revised target price.</li></ul>

O’Reilly Automotive managed to exceed the revenue as well as earnings expectations of Wall Street driven by strength in consumption and a robust increase of 16% in diluted earnings per share.Strength in the ticket count comps, particularly in the company’s professional business was a great contributor to the outperformance.We give O’Reilly Automotive a ‘Hold’ rating with a revised target price.

O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! - Financial Forecasts

Credit

<ul><li>O'Reilly Automotive, Inc is one of the largest retailers of automobile aftermarket parts in the U.S.</li><li>The company has consistently reported strong sales volumes and the management claims that the core fundamental demand drivers are still strong, which supports the health of the automotive aftermarket.</li><li>DIY and professional businesses have showed strength across 2022 and their high average ticket increase contributed to the improved performance in their DIY division, which accelerated on a 1, 2, and 3-year comparable store sales growth basis.</li></ul>

O'Reilly Automotive, Inc is one of the largest retailers of automobile aftermarket parts in the U.S.The company has consistently reported strong sales volumes and the management claims that the core fundamental demand drivers are still strong, which supports the health of the automotive aftermarket.DIY and professional businesses have showed strength across 2022 and their high average ticket increase contributed to the improved performance in their DIY division, which accelerated on a 1, 2, and 3-year comparable store sales growth basis.

O'Reilly Automotive Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

O'Reilly Automotive / Equity Capital Markets

<ul><li>This is our first report on O'Reilly Automotive, Inc., one of the largest retailers of automobile aftermarket parts in the U.S.</li><li>O'Reilly Automotive had a great last quarter and ended 2022 with an all-around beat.</li><li>The company reported strong sales volumes and the management claims that the core fundamental demand drivers are still strong, which supports the health of the automotive aftermarket.</li></ul>

This is our first report on O'Reilly Automotive, Inc., one of the largest retailers of automobile aftermarket parts in the U.S.O'Reilly Automotive had a great last quarter and ended 2022 with an all-around beat.The company reported strong sales volumes and the management claims that the core fundamental demand drivers are still strong, which supports the health of the automotive aftermarket.

O'Reilly Automotive Inc.: Initiation of Coverage – Business Strategy

United States

O'Reilly Automotive, Inc. retails and supplies automotive aftermarket parts, tools, supplies, equipment, and accessories.  The Company sells its products to do-it-yourself customers and professional mechanics or service technicians. O'Reilly operates stores throughout the United States.

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O'Reilly Automotive (ORLY US)

Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.

Mohshin Aziz

TUHU Car IPO: Valuation Insights

Tuhu has launched its HKEx IPO at a price range of HK$28.00-31.00 per share. Our valuation analysis suggests that Tuhu is reasonably priced at the...

Arun George

O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! - Financial Forecasts

O’Reilly Automotive managed to exceed the revenue as well as earnings expectations of Wall Street driven by strength in consumption and a robust...

Baptista Research

O'Reilly Automotive Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

O'Reilly Automotive, Inc is one of the largest retailers of automobile aftermarket parts in the U.S. The company has consistently reported strong...

Baptista Research

O'Reilly Automotive Inc.: Initiation of Coverage – Business Strategy

This is our first report on O'Reilly Automotive, Inc., one of the largest retailers of automobile aftermarket parts in the U.S. O'Reilly...

Baptista Research

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Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China's Auto Aftersales Service Market

​Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.

Mohshin Aziz

TUHU Car IPO: Valuation Insights

Tuhu has launched its HKEx IPO at a price range of HK$28.00-31.00 per share. Our valuation analysis suggests that Tuhu is reasonably priced at the...

Arun George

O’Reilly Automotive Inc.: Continued Store Additions & Other Factors Driving Growth! - Financial Forecasts

O’Reilly Automotive managed to exceed the revenue as well as earnings expectations of Wall Street driven by strength in consumption and a robust...

Baptista Research

O'Reilly Automotive Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

O'Reilly Automotive, Inc is one of the largest retailers of automobile aftermarket parts in the U.S. The company has consistently reported strong...

Baptista Research

O'Reilly Automotive Inc.: Initiation of Coverage – Business Strategy

This is our first report on O'Reilly Automotive, Inc., one of the largest retailers of automobile aftermarket parts in the U.S. O'Reilly...

Baptista Research

Tuhu Car (9690 HK) set to dominate China's automotive aftersales industry with high earnings growth potential and attractive valuation.