According to the Zhitoa Finance APP, Goldman Sachs released a research report maintaining the "Buy" rating for TUHU-W (09690), and raised the Target Price by 8.8% from HKD 22.5 to HKD 24.5. The bank expects that TUHU, as China's largest online and offline integrated Car Service platform, will enjoy continuous operational leverage and efficiency improvements, thereby reducing the operating expense ratio. Along with the improvement in gross margin, it should lead to many years of operational profit expansion, with a projected compound annual growth rate of 35% for net income from 2023 to 2026.

Goldman Sachs believes that TUHU is the largest independent aftermarket (IAM) supplier in China. With its lower and more transparent pricing and revenue capability, TUHU has become a net beneficiary in the current environment. Although the pace of expansion for car manufacturers was slow in the first half of this year, Goldman Sachs expects to see acceleration in capacity expansion during the second half, with the number of car manufacturers reaching 6,800 to 6,900 by the end of this year. Looking ahead to the second half of this year, the bank expects TUHU's revenue to grow by 9% year-on-year to 7.7 billion RMB, with adjusted net income increasing by 41% year-on-year to 0.378 billion RMB, indicating an adjusted net margin of 4.9%.