Tuopu Group(SH:601689) Southwest Securities·2024-10-31 00:33Investment Rating - The report maintains a "Buy" rating for Top Group (601689) [1] Core Views - The Q3 performance met expectations, with a year-on-year net profit increase of 39.9% [1] - The company's revenue for the first three quarters of 2024 reached 19.352 billion yuan, up 36.8% year-on-year [1] - The gross margin for Q3 was 21.2%, a decrease of 1.4 percentage points year-on-year, while the net margin was 11.6%, an increase of 0.3 percentage points year-on-year [1] Summary by Sections Financial Performance - For Q3 2024, the company achieved revenue of 7.13 billion yuan, a year-on-year increase of 42.9% and a quarter-on-quarter increase of 9.1% [1] - The net profit for Q3 was 778 million yuan, up 54.6% year-on-year but down 4.1% quarter-on-quarter [1] - The gross margin for Q3 was 20.9%, down 1.8 percentage points year-on-year but up 0.5 percentage points quarter-on-quarter [2] Strategic Developments - The company is advancing its product platform strategy, with significant growth in automotive electronics, achieving a revenue of 710 million yuan in H1 2024, up 744% year-on-year [3] - The company is expanding its international strategy, with progress in its North American and European markets, including a project order from BMW [3] Earnings Forecast and Investment Recommendations - The forecast for EPS from 2024 to 2026 is 1.73, 2.07, and 2.49 yuan, respectively, with a corresponding PE of 26, 22, and 18 times [4] - The compound annual growth rate (CAGR) for net profit is expected to be 25% [4]