CICC has released a research report commenting on Tuhu-W's (09690) announcement of a merger and acquisition involving Australia's leading auto service chain mycar. CICC believes the deal boosts market confidence, raises its target price by 5.3% to HK$15.80, and maintains its "Outperform" rating.
On September 24, 2026, Tuhu-W (09690) issued an announcement stating its intention to acquire the entire share capital of Conti Trade Australia, a subsidiary of Continental Group. The target operates mycar, a leading tire and auto service chain in Australia with a nationwide network of directly operated stores. The transaction is still subject to relevant regulatory approvals.
CICC believes the acquisition will help Tuhu-W (09690) rapidly obtain scaled overseas offline outlets, a local operating team, and mature automotive aftermarket operating capabilities, shortening the cultivation cycle for overseas markets, promoting diversification of revenue and geographic structure, and building a business pivot for expanding into other overseas markets.
Institutional analysis notes that the core businesses of Tuhu-W (09690) and mycar both focus on tires and maintenance services, providing a foundation for synergy in product procurement, supply chain management, and store operations. Following the merger, Tuhu-W (09690) can export its digital operations experience, optimize operational efficiency, and is expected to release profit elasticity over the medium to long term.
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