Tuopu Group(SH:601689) Changjiang Securities·2024-11-01 06:14Investment Rating - The investment rating for the company is "Buy" and is maintained [6][8]. Core Views - The company reported a significant increase in revenue and net profit for Q3 2024, with revenue reaching 7.13 billion yuan, up 42.9% year-on-year, and net profit attributable to shareholders at 780 million yuan, up 54.6% year-on-year [3][4]. - The growth is attributed to a diverse customer base and increased sales from new business contributions, despite a slight decline in domestic passenger car sales [3][5]. - The company is expected to benefit from scale effects and a decrease in raw material prices, which may enhance profit margins in the future [4][5]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a gross margin of 20.9%, a year-on-year decrease of 1.8 percentage points but a quarter-on-quarter increase of 0.5 percentage points [4]. - The net profit margin for Q3 was 10.9%, reflecting a year-on-year increase of 0.8 percentage points [4]. - The company anticipates continued revenue growth, with projected net profits of 3.06 billion, 3.86 billion, and 4.78 billion yuan for 2024, 2025, and 2026 respectively [6][11]. Market Outlook - The company is expanding its global presence, with new orders from major clients such as BMW and a focus on electric vehicle components [5][6]. - The introduction of new products in the automotive electronics sector is expected to drive further growth [5][6]. - The company’s production capacity is ramping up, with new factories in Mexico contributing to increased output [5]. Investment Recommendations - The company is positioned for strong growth due to its platform-based approach and diverse product offerings, with a projected PE ratio decreasing from 25.5X in 2024 to 16.4X in 2026 [6][11]. - The recommendation remains positive as the company is expected to continue benefiting from the growing demand in the new energy vehicle market [6][8].