Tuopu Group(SH:601689) Great Wall Securities·2024-05-27 05:02Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][3][6]. Core Views - The company's air suspension business is expected to contribute significantly to revenue growth in 2024, with multiple production launches planned [2][3]. - The company has demonstrated robust growth in 1Q24 and 2023, with revenue and net profit increasing by 27.3% and 43.4% year-on-year, respectively [2][3]. - The company is expanding its production capacity through a recent capital increase, which will enhance its ability to meet growing demand in automotive electronics and robotics [2][3]. Financial Summary - Revenue is projected to grow from 19,701 million in 2023 to 26,501 million in 2024, reflecting a year-on-year growth rate of 34.5% [1][7]. - Net profit is expected to rise from 2,151 million in 2023 to 2,956 million in 2024, with a growth rate of 37.4% [1][7]. - The company's return on equity (ROE) is forecasted to improve from 15.6% in 2023 to 18.2% in 2024 [1][7]. - The earnings per share (EPS) is anticipated to increase from 1.85 in 2023 to 2.54 in 2024 [1][7]. Business Development - The company has established a diverse business portfolio, including eight major segments such as automotive NVH systems, lightweight body components, and intelligent cockpit parts [3][6]. - The company is implementing a Tier 0.5 cooperation model, which is expected to enhance order growth and product delivery capabilities [3][6]. - Manufacturing bases have been set up in key automotive industry clusters, with ongoing expansions in Poland, Mexico, and the United States [3][6].