Tuopu Group(SH:601689) Caixin Securities·2024-09-23 07:30Investment Rating - The report assigns an "Increase" rating for the company [1] Core Views - The company has shown significant growth in its automotive electronics business, with international expansion progressing smoothly [4][6] - The company reported a revenue of 12.22 billion yuan for H1 2024, representing a year-on-year increase of 33.42%, and a net profit of 1.456 billion yuan, also up by 33.11% [5] - The company is expected to achieve revenues of 27.06 billion yuan, 33.78 billion yuan, and 42.16 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 2.88 billion yuan, 3.73 billion yuan, and 4.83 billion yuan [8] Financial Performance - For H1 2024, the company achieved a gross margin of 21.35%, a decrease of 1.23 percentage points year-on-year, attributed to rising raw material costs and new project impacts [5] - The company’s revenue from automotive electronics surged by 743.59% to 7.07 billion yuan, indicating strong demand and successful project launches [5] - The company’s operating cash flow for H1 2024 was 1.038 billion yuan, down 15.31% year-on-year [5] International Expansion - The company has established partnerships with innovative automotive companies in the U.S. and traditional automakers like Ford and GM in the electric vehicle sector [6] - The first factory of the company's Mexican industrial park has commenced production, with additional factories under installation [6] Valuation Metrics - The current price corresponds to a P/E ratio of 20.91 for 2024, with a projected valuation range of 34.2 to 42.8 yuan based on industry peers [8] - The report anticipates a steady increase in earnings per share (EPS) from 1.71 yuan in 2024 to 2.86 yuan in 2026 [9]