Tuopu Group(601689)2025-01-21 09:10Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Views - The company's performance for 2024 is expected to meet forecasts, with a projected net profit increase of 32.73%-46.68% to between 2.855 billion and 3.155 billion yuan [1]. - The dual development model of smart vehicles and electric drive systems is highlighted as a key growth driver, with significant revenue growth anticipated in the automotive electronics sector [2]. - The expansion of customer partnerships and orderly progress in domestic and international production capacity are seen as crucial for sustained growth [3]. Summary by Sections Performance Forecast - The company forecasts a net profit for 2024 of 2.855 to 3.155 billion yuan, with a year-on-year increase of 32.73%-46.68% [1]. - The fourth quarter of 2024 is expected to show a net profit increase of 12.2%-66.4% year-on-year, despite a quarter-on-quarter decrease [1]. Business Development - The automotive electronics business is projected to grow by 906% in 2024, with significant contributions from air suspension systems and smart braking systems [2]. - The electric drive system has commenced production and is expected to contribute positively to profits, with a gross margin of 52.3% in the first half of 2024 [2]. Customer and Capacity Expansion - The company is expanding its customer base, including partnerships with major clients like Tesla, Huawei, and BYD, which is expected to drive long-term growth [3]. - New production lines are being established, including a third air suspension production line in China and new facilities in Mexico, enhancing overall production capacity [3]. Financial Projections - The report projects revenues of 27.213 billion yuan for 2024, with a growth rate of 38.13%, and net profits of 2.931 billion yuan, reflecting a growth rate of 36.29% [5]. - The earnings per share (EPS) is expected to be 1.74 yuan in 2024, with a projected increase to 2.32 yuan by 2025 [5].