Damo: Tourover-W (09690) continues to expand overseas layout, and Malaysian stores are returning to the current period faster

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Tourover-W (09690) continues to expand its overseas layout, and the bank now has a target price of HK$15 and an “increase in weight” rating for Tourover.

According to the bank, thanks to aggressive online promotion, Tourover's Malaysian stores are growing faster than mainland stores. The report mentioned that Tourover entered the Malaysian market at the end of 2025 and has opened more than 20 stores so far, and more than 10 more are being prepared. The bank visited a store that began operating in February of this year and has been profitable every month since March. The store manager (that is, the franchisee) is expected to recoup the initial investment within one to one and a half years, compared to the average return period in China of two and a half years. He has already opened a second Tourover store in Kuala Lumpur and a third in Johor Bahru. The target customers are from Singapore, and similar stores in Shenzhen target Hong Kong customers.

The bank believes that more than 30% of Tourover's revenue in China comes from its own brand products, which are purchased directly from manufacturers, and the profit margin is usually high. However, in Malaysia, Tourover franchisees are still mainly purchasing parts locally, as it takes time to obtain import certification. If the company can further take advantage of the cost advantages of China's auto parts supply chain, there is room to expand product range and improve profit margins in both Malaysia and Australia.

With competition in the domestic market intensifying, expansion into markets such as Malaysia, Hong Kong, Australia and others is strategically important for Tourover. The bank anticipates that Tourover will continue to expand its presence in overseas automotive aftermarket, with its digital platform and supply chain capabilities. Execution capacity remains critical, as companies may face challenges in maintaining customer retention after recruiting local workers and normalizing promotional offers.