Tuopu Group(601689) 国信证券·2024-10-29 10:41Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][19]. Core Views - The company has shown strong financial performance with a 40% year-on-year increase in net profit for the first three quarters of 2024, driven by a stable release of multiple product lines and ongoing cost reduction efforts [1][4]. - The gross margin has improved sequentially due to the continuous release of scale effects, with a gross margin of 20.9% in Q3 2024, reflecting a year-on-year decrease of 1.8 percentage points but a sequential increase of 0.5 percentage points [1][7]. - The company is expected to benefit from deep binding with quality customers and the gradual mass production of new products, with significant growth anticipated from North American clients and other key customers [1][3][17]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 19.35 billion yuan, a year-on-year increase of 36.8%, and a net profit of 2.23 billion yuan, up 39.9% year-on-year [1][4]. - In Q3 2024, the company reported revenue of 7.13 billion yuan, a year-on-year increase of 42.9%, and a net profit of 780 million yuan, reflecting a year-on-year increase of 54.6% [1][4]. - The company’s revenue from various segments includes 3.32 billion yuan from shock absorbers (up 14.9% year-on-year), 6.02 billion yuan from interiors (up 25.8%), and 1.29 billion yuan from automotive electronics (up 940.3%) [1][7]. Future Outlook - The company maintains a positive outlook for 2024, with expected net profits of 2.95 billion yuan, 3.88 billion yuan, and 4.79 billion yuan for 2024, 2025, and 2026, respectively, corresponding to EPS of 1.75, 2.30, and 2.84 yuan [1][18]. - The company is positioned as a core player in the Tesla supply chain, with ongoing advancements in its platform strategy and Tier 0.5 model [1][3][17].