GLONGHUI, December 7 | After Tuya.US (TUYA.US) announced its third quarter results, CICC released a research report at the end of November saying that, benefiting from progress in downstream inventory replenishment, the company's performance exceeded market expectations. According to CICC, the PaaS business has regained growth, benefiting from downstream inventory replenishment and improvements in the macro environment. Although the pressure on the exchange rate and optional consumer demand remains, we believe that with the end of the inventory cycle, the company's product focus and strengthening strategy has achieved results, and it is expected that growth will resume as the industry gradually recovers. Smart device solutions enable revenue at scale. Orders continued to cover Europe, America, Japan, South Korea, and well-known retail channels, and emerging markets expanded smoothly. We believe that with the advancement of the smart device business, it is expected that the customer & OEM relationships that the company has accumulated in the PaaS business will continue to be utilized, and at the same time, the finished product form is expected to increase the company's supply value. Expense control is steady, and profits are increasing. The company has made great progress in expanding the high-quality customer base, enhancing product capabilities, and developing new scenarios. The impact of improving quality and efficiency is showing, and profitability is expected to continue to improve. Considering downstream inventory replenishment and improvements in the macro environment, we maintained an outperforming industry rating, and raised the target price by 23% to $2.7, corresponding to 6.9/6.0 times 2023/24 P/S.