Browse
Log in / Register
Share
On September 25, 2025, we re-examine the half-year results of TUHU Car (SEHK:9690) released in August 2026. The company reported sales of CNY 8,777.82 million and net income of CNY 184.44 million, with diluted EPS from continuing operations of CNY 0.2. Despite a 4.82% one-day bounce to HK$11.95, the stock is down 25.55% year-to-date and 40.90% over the past year. Investors are now weighing whether the recent uptick signals a true recovery or just a dead cat bounce, especially as the company’s valuation remains a hot-button issue.
TUHU Car’s current price-to-earnings ratio of 27.4x stands out sharply against the Hong Kong Commercial Services industry average of 10.4x and a peer average of merely 6.3x. This multiple suggests investors are paying a hefty premium for each dollar of earnings. For a platform business that only turned profitable in the last five years, such a premium may be justified only if earnings growth accelerates significantly. However, the half-year results showed profit margins softening, with net income margins dipping to 2.1% from
