CICC: Raises TUHU-W (09690) target price, bullish on Australia acquisition opening up overseas growth space.

Recently, CICC released a research report commenting on TUHU-W (09690)'s announcement of the acquisition of Australian leading auto service chain mycar. CICC believes the acquisition boosts market confidence and raises the target price by 5.3% to HK$15.80, while maintaining an "Outperform" rating. On September 24, 2026, Tuhu announced plans to acquire all shares of Conti Trade Australia under Continental AG. The target operates Australia's leading tire and auto service chain mycar, which has a nationwide directly-operated store network. The transaction is still subject to relevant regulatory approvals. CICC believes the acquisition will help Tuhu rapidly obtain scaled overseas offline outlets, local operating teams, and mature automotive aftermarket operational capabilities, shorten the overseas market cultivation cycle, promote revenue and geographic diversification, and build a business fulcrum for expanding into other overseas markets. Institutional analysis indicates that Tuhu and mycar both focus on tires and maintenance services in their core businesses, providing a foundation for synergy in product procurement, supply chain management, and store operations. After the merger, Tuhu can export its digital operations experience to optimize operational efficiency, and is expected to unleash profit elasticity in the medium to long term.