Tuopu Group(SH:601689) Minsheng Securities·2024-10-29 07:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 46.39 CNY per share [4][5]. Core Views - The company reported steady operational performance in Q3 2024, achieving revenue of 19.352 billion CNY for the first three quarters, a year-on-year increase of 36.75%. The net profit attributable to shareholders reached 2.234 billion CNY, up 39.89% year-on-year [4][5]. - The company is strategically aligned with major clients such as Tesla, which delivered 462,900 vehicles in Q3 2024, reflecting a 6.40% year-on-year increase. The report anticipates continued growth in sales for Tesla and other key clients [4][5]. - The company is expanding its overseas operations, with a new interior factory in Mexico starting production in September 2024 and a thermal management factory achieving a production milestone of 20,000 units by October 2024 [4][5]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 7.130 billion CNY, a year-on-year increase of 42.86% and a quarter-on-quarter increase of 9.13%. The gross profit margin for Q3 was 20.88%, showing a year-on-year decrease of 1.78 percentage points but an increase of 0.48 percentage points from the previous quarter [4][5]. - The company’s R&D expenses for Q3 2024 were 327 million CNY, a year-on-year increase of 27.12%, with the R&D expense ratio decreasing by 0.57 percentage points to 4.58% [4][5]. Market Position and Strategy - The company is positioned as a Tier 0.5 supplier aiming to become a leading player in the global automotive parts industry. It has established strategic partnerships with both traditional automakers and new energy vehicle manufacturers [5]. - The company is actively developing its robotics segment, with plans to invest 5 billion CNY in a new electric drive system R&D and production base, which is expected to enhance its capabilities in the robotics market [5]. Future Projections - Revenue projections for the company are estimated at 27.505 billion CNY for 2024, 35.098 billion CNY for 2025, and 44.177 billion CNY for 2026. Corresponding net profits are projected to be 2.969 billion CNY, 3.945 billion CNY, and 4.935 billion CNY respectively [6][7]. - The report anticipates that the company will benefit from the growing demand for lightweight materials, intelligent driving systems, and thermal management systems, as well as the expansion of its robotics business [5].