On January 13, 2025, the SunCar (NASDAQ:SDA) announced that Breaux Walker was appointed Chief Strategy Officer. Mr. Walker will oversee the company’s capital markets strategy, investments, international financing, and investor relations.
Mr. Walker has over 25 years of experience in business development, corporate finance, and cross-border transactions, particularly in the technology and fintech sectors. He joined SunCar in March 2024 as consulting GM, North America. Earlier in his career, Mr. Walker demonstrated entrepreneurial success in China, founding and scaling a technology services company to $25 million in revenue. He is also fluent in Mandarin Chinese.
SunCar Secures Exclusive $6.8 Million Contract with Sam's Club Across 17 Cities in China.
On January 8, 2025, SunCar announced that it had secured the exclusive contract to manage the 2025 Sam's Club Premium Membership Car Wash Project. Under this agreement, SunCar will deliver premium car wash services for Sam's Club members across 17 cities in China. This includes cities such as Shanghai, Shenzhen, Guangzhou, Chengdu, Chongqing, Changsha, Hangzhou, Suzhou, and Zhuhai. Walmart China's budget for the Contract is approximately 49 million RMB ($6.7 million) and highlights SunCar's capabilities and leadership in the automotive after-service sector.
SunCar Wins Bid to Provide Concierge Transportation Services for Shanghai Rural Commercial Bank
On December 18, 2024, SunCar announced that it had been awarded a bid to provide premium concierge transportation services for Shanghai Rural Commercial Bank's valued clients. This extends the partnership between SunCar and SRCB, who have worked together since 2014.
SunCar will manage SRCB's retail points-based travel benefits, which include concierge car services, designated driver assistance, and VIP lounge access. Other services include designated driver assistance, high-speed rail station transfers, and international airport transportation for credit card customers.
SunCar Technology Group Joins the NASDAQ Golden Dragon China Index
On November 19, 2024, SunCar announced its inclusion in the NASDAQ Golden Dragon China Index. The NASDAQ Golden Dragon China Index is a benchmark for tracking Chinese companies listed on U.S. exchanges which provide investors exposure to dynamic growth opportunities in China's economy, particularly in high growth sectors such as digital services, technology, new consumer markets, and clean energy. This index includes leading Chinese companies like Alibaba (NYSE:BABA), JD.com (NASDAQ: D), Baidu (NASDAQ:BIDU), Xpeng (NYSE: XPEV), and Nio (NYSE:NIO).
SunCar Technology and Wuhan JIDU Join Forces to Revolutionize Auto Insurance with Nationwide Intelligent Platform
On November 11, 2024, SunCar announced it had entered into a strategic partnership with Wuhan JIDU to provide its advanced insurance technology platform to auto buyers and customers across China. This partnership represents a major step in enhancing the digital insurance experience for Wuhan JIDU's growing customer base.
Wuhan JIDU is a groundbreaking joint venture between Baidu and Geely. JIDU Auto is at the forefront of developing intelligent electric vehicles focusing on AI-driven autonomous technology. With this collaboration, Wuhan JIDU will leverage SunCar's cloud-based intelligent insurance platform to deliver efficient, fully digital insurance services.
The nationwide rollout of SunCar's intelligent insurance platform will provide Wuhan JIDU's customers with a comprehensive solution for managing their auto insurance needs. The platform offers instant online quoting, underwriting, electronic policy issuance, and claims management powered by big data and AI. It connects Wuhan JIDU with leading insurance providers and intermediaries in China.
SunCar Technology Expands Strategic Partnership with Ping An Property & Casualty Across Key Provinces
On October 24, 2024, SunCar announced new and renewed partnerships with several branches of Ping An Property & Casualty Insurance, which includes Shanghai, Guangdong, Foshan, Hebei, and Shanxi. The total contract value from these agreements exceeds 30 million RMB ($4.1 million).
The breadth of these new agreements goes beyond traditional car wash and maintenance services. SunCar will introduce a larger suite of premium auto services, including clay bar waxing, polishing, wheel alignment, ozone disinfection, and air conditioning sterilization. As of October 2024, SunCar's automotive service collaborations now extend to all of Ping An P&C's top 10 provincial branches by premium scale, including Guangdong, Jiangsu, Zhejiang, Shanghai, Sichuan, Shenzhen, Shandong, Hebei, Beijing, and Anhui.
Valuation & Estimates
There are no changes to our price target and estimates at this time. Our total revenue estimate is $455.3 million for 2024 and $570.7 million for 2025. The eInsurance segment is expected to be the company’s fastest growing business line. Our 2024 full year adjusted EPS estimate is $0.11, and for 2025, our EPS estimate is $0.53.
We believe our multiple valuation methods support our conservative Discounted Cashflow (DCF) valuation, which provides a target price of $20.00 per share.
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