ATRenew Inc. (RERE): A Bull Case Theory

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Ricardo PillaiSat, February 28, 2026 at 7:29 PM GMT+1 3 min readWe came across a bullish thesis on ATRenew Inc. on 21 Street Capital’s Substack. In this article, we will summarize the bulls’ thesis on RERE. ATRenew Inc.'s share was trading at $6.11 as of February 25th. RERE’s trailing and forward P/E were 38.13 and 8.08 respectively according to Yahoo Finance.Coupang (CPNG) Hits Fresh High After Scoring Washington Capitals DealRawpixel.com/Shutterstock.comATRenew (RERE) is the dominant player in China’s pre-owned consumer electronics recycling market, operating the largest network in an overlooked but structurally attractive niche. The company has built a vertically integrated platform spanning sourcing through AHS Recycle, B2B distribution via PJT Marketplace, and B2C sales through Paipai, transforming what was historically a fragmented and opaque ecosystem into a standardized marketplace with transparent pricing and quality assurance.Its scale—over 2,000 stores and eight operation centers across nearly 300 cities—creates significant economies of scale, indirect network effects, and a powerful data flywheel that improves pricing accuracy and operational efficiency over time. Strategic partnerships with major platforms and manufacturers such as JD.com and Apple further reinforce supply pipelines and competitive positioning, while proprietary inspection and data-cleansing technologies establish industry benchmarks that are difficult for competitors to replicate.Despite operating in a capital-intensive sector with thin margins, ATRenew has achieved strong financial momentum, with revenue growing over 27% and earnings expanding more than fourfold, supported by automation initiatives and improving scale economics that are driving margin expansion and rising returns on invested capital.The long-term growth runway remains substantial, as China’s mobile device recycling rate is estimated at only around 2%, leaving significant penetration potential, while expansion into multi-category recycling and selective international opportunities provides additional optionality.However, the market continues to undervalue the company due to perceptions of recycling as a low-quality, unfamiliar industry, resulting in modest valuation multiples relative to its growth profile and competitive advantages. With continued earnings execution, improving profitability, and potential sentiment rerating, ATRenew offers a compelling asymmetric opportunity, with meaningful upside potential over the next several years driven by sustained transaction growth, operating leverage, and multiple expansion.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,878.88 -29.98 (-0.43%)Dow 3048,977.92 -521.28 (-1.05%)Nasdaq22,668.21 -210.17 (-0.92%)Russell 20002,632.36 -44.93 (-1.68%)VIX19.86 +1.23 (+6.60%)Gold5,247.90 +53.70 (+1.03%)Trending tickersBTC-USD Bitcoin USD 65,906.73 +596.11 (+0.91%)CL=F Crude Oil Apr 26 67.02 +1.81 (+2.78%)ETH-USD Ethereum USD 1,935.57 +17.63 (+0.92%)GC=F Gold Apr 26 5,247.90 +53.70 (+1.03%)XRP-USD XRP USD 1.34 -0.01 (-0.98%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)Top economic eventsEarnings eventsMy earnings eventsEarnings events