Tuopu Group(SH:601689) GF SECURITIES·2024-09-04 10:37Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 43.23 CNY per share, indicating an expected performance that exceeds the market by more than 15% over the next 12 months [2][24]. Core Insights - In Q2 2024, the company achieved a net profit attributable to shareholders of 0.81 billion CNY, with a strong performance overall. For the first half of 2024, the company reported a revenue of 12.22 billion CNY, a year-on-year increase of 33.4%, and a net profit of 1.46 billion CNY, also up by 33.1% [6][10]. - The company's cost control capabilities have improved, with gross margin, net margin, and expense ratio for H1 2024 at 21.35%, 12.0%, and 8.7%, respectively [10][16]. - The company is advancing its product platform strategy and accelerating its international market strategy, with significant growth in automotive electronic product orders and ongoing projects in North America and Europe [16][17]. - The company is positioned as a leading system integration supplier in China, actively expanding into emerging sectors such as lightweight automotive chassis, automotive electronics, and new energy vehicle thermal management [17][19]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 12.22 billion CNY, a 33.4% increase year-on-year, and a net profit of 1.46 billion CNY, also up by 33.1%. In Q2 2024, revenue reached 6.53 billion CNY, a 39.3% increase year-on-year, with a net profit of 0.81 billion CNY, up by 25.9% [6][10]. Cost Control - The company's gross margin, net margin, and expense ratio for H1 2024 were 21.35%, 12.0%, and 8.7%, respectively, showing improvements in cost management [10][16]. Strategic Initiatives - The company is implementing a product platform strategy and accelerating its international market strategy, with automotive electronic product orders increasing and several projects in North America and Europe progressing well [16][17]. Earnings Forecast and Investment Recommendations - The company is expected to maintain steady growth, with EPS projected at 1.73 CNY, 2.10 CNY, and 2.68 CNY for 2024, 2025, and 2026, respectively. The report assigns a 25x PE valuation for 2024, leading to a target price of 43.23 CNY per share [17][19].