Tuopu Group(SH:601689)2025-09-03 13:23Summary of Tuopu's 2Q25 Earnings Call Company Overview - Company: Ningbo Tuopu Group Co., Ltd. - Industry: Autos & Auto Parts - Ticker: 601689 CH - Market Cap: RMB105.6 billion ($14.8 billion) [8] Key Financial Results - 2Q25 Revenue: RMB7.2 billion, up 10% YoY [1][2] - 2Q25 Earnings: RMB729 million, down 10% YoY [1][2] - Gross Profit Margin (GPM): 19.3%, down 0.6/1.1 percentage points QoQ/YoY [1][2] - D&A Cost to Revenue Ratio: Estimated to have risen to approximately 7% in 1H25, up 1 percentage point YoY [2] Management Outlook - Revenue Growth Target: Aiming for 20% YoY revenue growth in 2026 [1][2] - Long-term Growth Expectation: Management expects double-digit growth from 3Q25 through 2030, supported by contributions from major clients like Xiaomi, Seres, and Geely [2] - 2025 Revenue Target: RMB30 billion [2] Business Expansion - Overseas Markets: Focus on Europe and the US as key growth drivers, with major customers including Ford, GM, Stellantis, Volkswagen, BMW, and Mercedes [3] - Production Capacity: Plans for a second phase at the Poland factory due to increased demand from Mercedes and BMW; Thailand plant aimed at humanoid robots and supporting local Chinese OEMs like BYD and Chery [3] Humanoid Robots Development - Current Production Challenges: Inefficiencies in producing humanoid robot actuators due to a wide variety of specifications (48 in total) and lack of full automation [4] - Future Orders: Expected to start receiving orders for the next-generation Optimus in 1Q26 [4] - R&D Investment: Annual investment of approximately RMB100 million with a robotics team of 138 members [4] Liquid Cooling Business - Market Potential: Strong potential identified in transitioning from automotive thermal management to liquid cooling solutions for AI data centers [5] - Core Products: Cooling plates and CDU components [5] - Order Backlog: Liquid cooling order backlog has reached RMB1.7 billion [5] Valuation and Price Target - Price Target: RMB72.5 based on a 35x 2026E P/E [6][14] - Current Price: RMB62.61, representing a potential upside of 16% [8] Financial Estimates - Revenue Estimates: - 2025: RMB29.04 billion - 2026: RMB33.18 billion - 2027: RMB39.85 billion [7] - Net Profit Estimates: - 2025: RMB3.06 billion - 2026: RMB3.49 billion - 2027: RMB4.25 billion [7] Risks - Potential Risks: Lower-than-expected NEV sales and slower development of humanoid robots [24] Sustainability Goals - Carbon Neutrality Targets: Aiming to achieve carbon peak by 2030 and carbon neutrality by 2060 in line with China's decarbonization goals [17] Conclusion - Investment Recommendation: Maintain Buy rating with a focus on growth opportunities in both the automotive and emerging technology sectors, particularly humanoid robots and liquid cooling solutions [6][11]