Tuopu Group(601689) 光大证券·2024-08-31 13:11Investment Rating - The report maintains a "Buy" rating for the company, citing its strong performance in intelligent business segments and its integrated R&D capabilities in mechanical, electrical, and software domains [1][4] Core Views - The company's 1H24 performance was robust, with revenue increasing by 33.4% YoY to RMB 12.22 billion, and net profit attributable to shareholders rising by 33.1% YoY to RMB 1.46 billion [1] - The automotive electronics business saw explosive growth, with revenue surging by 796.9% YoY to RMB 710 million, driven by air suspension, intelligent driving, and smart cockpit components [1] - The company's robot business is entering a new phase, with revenue from the electric drive system reaching RMB 6.27 million in 1H24, up from RMB 1.85 million in 2023, indicating improved product maturity [1] - The company is optimizing its customer structure and expanding its global production capacity, with new factories in Mexico and Europe contributing to its long-term growth prospects [1] Financial Performance - In 1H24, the company's gross margin decreased by 1.2 percentage points YoY to 21.3%, primarily due to fluctuations in raw material costs and pressure from downstream price reductions [1] - The company's revenue growth is expected to remain steady, with full-year revenue from major customer Tesla projected to stabilize, while new clients like Huawei, Zeekr, Xiaomi, and BYD contribute to growth [1] - The report forecasts a 3.0% increase in 2024E net profit to RMB 2.93 billion, with further growth expected in 2025E and 2026E to RMB 3.91 billion and RMB 4.72 billion, respectively [1] Business Segments - The automotive electronics segment, particularly the air suspension system, is expected to drive future revenue growth, with the company having produced its 60,000th air suspension system and achieving an annual production capacity of 1 million units [1] - The chassis system segment continued to perform strongly, with revenue increasing by 35.8% YoY to RMB 3.79 billion in 1H24 [1] - The robot segment, particularly the electric drive system, is showing signs of maturity, with revenue growth and a decline in gross margin indicating progress toward mass production [1] Global Expansion - The company is actively expanding its global footprint, with new factories in Mexico and Europe, including a facility in Poland that has secured a global order from BMW [1] - The company's Tier 0.5 platform supply advantage is expected to help it scale efficiently and manage costs, while its in-house R&D capabilities will mitigate risks from customer sales fluctuations and cost pressures [1]