Deutsche Bank initiates coverage on Uxin Ltd. Sponsored ADR (UXIN.US) for the first time: assign a target price of $4.5 USD, optimistic about its "superstore" model.

On December 22nd Beijing time, Deutsche Bank Aktiengesellschaft released a research report, covering China's leading second-hand car retailer Uxin Ltd. Sponsored ADR (UXIN.US) for the first time, giving it a "buy" rating, and setting a 12-month target price of $4.5, representing a potential upside of about 31% from the current stock price. Deutsche Bank pointed out that the growth potential of the Chinese second-hand car market is huge, but the current penetration rate is still significantly lower than mature markets such as the United States. The Chinese second-hand car industry is currently accelerating towards standardized and scaled retail transformation, and the continuous improvement of the industry environment has created favorable conditions for the development of leading dealers. Uxin Ltd. Sponsored ADR has built systematic advantages in areas such as intelligent pricing, efficient inventory turnover, and one-stop car buying experience with its pioneering offline "super mega store" model. The report believes that with the continued expansion of the offline store network and the gradual release of economies of scale, the company's profitability is expected to continue to improve, and the long-term growth prospects are promising. Based on the expectation of rapid expansion of Uxin Ltd. Sponsored ADR's warehouse-style mega stores and single store sales growth, Deutsche Bank predicts that the compound annual growth rate of total trading volume for Uxin Ltd. Sponsored ADR from 2025 to 2028 will reach 75%, the compound annual growth rate of revenue will reach 71%, and overall profitability is expected to be achieved in 2028. In conclusion, Deutsche Bank has set a target price of $4.5 for Uxin Ltd. Sponsored ADR stock, representing a potential upside of about 31% from the current stock price.