SunCar expands partnership with Ping An Bank

NEW YORK - SunCar Technology Group Inc. (NASDAQ:SDA), a prominent player in China’s auto e-insurance and B2B auto services industry, has announced the expansion of its strategic partnership with Ping An Bank. This move is set to enhance the comprehensive automotive aftermarket services offered to Ping An Bank’s Credit Card Center and Automotive Consumer Finance Center customers throughout 2025. The company, currently valued at $516 million, has demonstrated strong revenue growth of 29% in the past year, despite operating with thin gross margins of 12%.InvestingPro analysis reveals several key insights about SunCar’s market position and growth potential, with 10+ additional exclusive ProTips available for subscribers.

The collaboration, which dates back to 2017, is expected to bolster the "Finance + Automotive Services" ecosystem that SunCar and Ping An Bank have been jointly cultivating. The services under this partnership will include car wash, designated driver services, and premium vehicle care solutions. The company’s stock has faced significant headwinds, declining nearly 49% over the past six months, though InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.

Chairman and CEO of SunCar Technology, Ye Zaichang, stated, "This partnership with Ping An Bank represents a significant advancement in our strategy to integrate financial services with automotive care. We’re enhancing the value proposition for Ping An Bank’s customers while establishing new standards for integrated service delivery in the automotive sector."

SunCar, founded in 2007, has been at the forefront of transforming the auto service and insurance landscape in China. The company’s cloud-based platforms connect drivers with a variety of auto services and insurance options through a vast network of sales partners, positioning SunCar as a leader in the B2B auto services and auto eInsurance markets, particularly for electric vehicles.

The information regarding the expanded partnership is based on a press release statement from SunCar Technology Group Inc. It should be noted that forward-looking statements in the press release reflect the company’s expectations for the future and are subject to risks and uncertainties that could cause actual results to differ. These factors include market competition, general economic conditions, and the company’s ability to maintain growth and protect its intellectual property, among others.

In other recent news, SunCar Technology Group Inc. has announced several key developments that are capturing attention. The company secured a contract to develop and manage an insurance management platform for Leapmotor, a leading electric vehicle manufacturer in China. This partnership marks a shift from a traditional insurance agency to a technology partnership, enhancing Leapmotor’s customer service capabilities. Additionally, SunCar has signed a $1.93 million contract with China Construction Bank to manage a car wash program in Hunan province, further expanding its service offerings in the banking sector.

Moreover, SunCar has entered into new agreements with China Pacific Insurance Company, positioning itself as the primary car wash and detailing service provider in Zhejiang and Jiangsu provinces. These contracts are part of SunCar’s strategy to expand its service network across China. Another significant development is the expansion of SunCar’s strategic partnership with a global electric vehicle manufacturer, which has seen its insurance brokerage services grow substantially in 2024.

In analyst updates, BTIG maintained a Buy rating for SunCar, reiterating a $12 price target. This follows SunCar’s recent secondary share offering, which raised $49.7 million. The company plans to use these funds for growth initiatives, including partnerships with new original equipment manufacturers. Additionally, SunCar announced a $30 million share buyback program, signaling confidence in its valuation. These developments highlight SunCar’s ongoing efforts to enhance its market presence and service offerings.

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