In today’s briefing:
- Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China’s Auto Aftersales Service Market
- European Airlines – Fare Data Suggests Risk to EasyJet/Wizz Peak Summer but Winter More Encouraging
Tuhu Car (9690 HK | BUY | TP:HKD24): Poised to Capture China’s Auto Aftersales Service Market
- 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.
European Airlines – Fare Data Suggests Risk to EasyJet/Wizz Peak Summer but Winter More Encouraging
- Latest RDC fare data deep dive suggests scope for negative surprises at easyJet and Wizz Air – we publish a detailed analysis across booking windows.
- easyJet fare data suggest potential for late-market disappointment, albeit winter prospects more encouraging.
- Wizz Air fare data cast doubt on hopes for fare growth.
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