Tuopu Group(SH:601689) Donghai Securities·2024-10-30 04:12Investment Rating - The report maintains a "Buy" rating for the company, based on performance reviews and profit forecasts for the upcoming years [6]. Core Views - The company's automotive electronics business is experiencing significant growth, driven by the popularity of models such as the AITO M9 and Xiaomi SU7, leading to a substantial increase in revenue from this segment [8]. - The report projects steady growth in net profit, estimating 3.016 billion yuan, 4.009 billion yuan, and 4.866 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 1.79 yuan, 2.38 yuan, and 2.89 yuan [6][7]. - The company is expanding its production capacity both domestically and internationally, with new factories in Mexico and ongoing projects in various regions including North America and Europe [6]. Financial Performance Summary - For Q3 2024, the company reported revenue of 7.130 billion yuan, a year-on-year increase of 43%, and a net profit of 778 million yuan, up 55% year-on-year [10]. - The main revenue streams for Q3 2024 included 1.174 billion yuan from shock absorber business, 2.116 billion yuan from interior functional components, and 2.225 billion yuan from chassis systems, with automotive electronics revenue soaring to 796 million yuan, reflecting a 1880% increase [8]. - The company’s gross margin for Q3 2024 was 20.88%, with a notable improvement in expense ratios, leading to enhanced profitability [8]. Revenue Growth Projections - The company anticipates a robust revenue growth trajectory, with projected main business income of 27.324 billion yuan in 2024, 35.026 billion yuan in 2025, and 40.998 billion yuan in 2026, reflecting growth rates of 39%, 28%, and 17% respectively [7]. - The net profit growth rates are expected to be 40% in 2024, 33% in 2025, and 21% in 2026, indicating a strong upward trend in profitability [7]. Market Position and Client Base - The company has established a strong client base, with significant contributions from major customers such as BYD, which delivered 1.1308 million units, and Seres, which saw a remarkable 654% increase in sales [9]. - The report highlights the importance of expanding into new markets and product lines to sustain growth and mitigate risks associated with reliance on existing clients [6].