Customer restructuring and product lines are making concerted efforts, and the company's performance continues to be released. In 2023, Tuopu Group's revenue was 19.70 billion yuan, +23.2% year on year, net profit of 2.16 billion yuan, +27.0% year on year, after deducting non-net profit of 2.02 billion yuan, +22.1% year on year, net cash flow from operating activities was 3.37 billion yuan, +47.4% year on year. In 2024, Q1 Tuopu achieved revenue of 5.69 billion yuan, +27.3% year-on-month, and +2.5% month-on-month; net profit to mother of 650 million yuan, +43.3% year-on-month, after deducting non-net profit of 60 billion yuan, +41.9% year-on-month, and +14.6% month-on-month. Against the backdrop of sales pressure on core customers, thanks to a continuously optimized customer structure (Huawei, Ideal, etc.) and a solid supply system, the company achieved a high increase in performance.
Under the platform-based strategy, the product line gained full strength, and profitability increased year-on-month in the first quarter. In 2023, the company achieved a gross margin of 23.0%, +1.4pct year on year, and a net margin of 10.9%, +0.3pct year on year; by business, the company's shock absorption business revenue was 4.30 billion yuan, +11.0% year on year, gross profit margin 24.3%, +0.2pct year on year; interior business revenue was 6.58 billion yuan, +20.4% year on year, gross profit margin of 20.0%, +0.9 pct year on year; chassis business revenue of 6.12 billion yuan, +37.7% year on year; gross profit margin 23.2%, +2.0pct year on year; thermal management business Revenue of 1.55 billion yuan, +13.1% year over year, gross profit margin of 18.9%, +0.3 pct year on year; automotive electronics business revenue was 180 million yuan, -5.8% year over year. The 24Q1 company achieved a gross margin of 22.4%, +0.5pct year over year, -1.7pct month-on-month, net profit margin 11.4%, +1.3pct month-on-month, and +1.5pct month-on-month. Thanks to product structure optimization, release of scale effects, customer volume, and impairment has been fully calculated (23Q4 accrued asset impairment 60 million+ credit impairment 180 million), the company's profitability improved year-on-year.
Deep bonding with quality customers and route mass production of new products brought certainty to 2024 performance. Throughout 2024, the vehicle side was Tuopu's basic platform, and the company's platform-based strategy+tier 0.5 model continued to advance. The core focus was on North American customers, high-quality customers such as Huawei, Ideal, Geely, BYD, and Xiaomi, and continued to launch new products: Tuopu Air Suspension has now received 8 fixed-point projects and was mass-produced one after another in 23Q4; the line control operation has targeted 6 projects and officially mass-produced; the electric control column has been targeted for 9 projects; the smart electric door system is also gradually mass-produced, and the smart electric door system is also gradually mass-produced China, Europe and America, with a total production capacity of over 4 million set/year At the same time, the company's actuator business continued to advance. The electric drive system business achieved revenue of 1.85 million yuan and a gross profit margin of 81.3% in '23. Tuopu's domestic and overseas factories continue to be built and promoted, continuously consolidating order acceptance capabilities, and protecting long-term development.
Risk warning: Customer sales fall short of expectations, and overseas competition intensifies.
Investment advice: The core target of Tesla's industry chain maintains a “buy” rating. We continue to be optimistic about the definitive performance growth brought about by Tuopu Group's product expansion, customer restructuring, and capacity expansion, and maintain profit forecasts. Tuopu Group's net profit to mother is estimated to be 29.8/41.4/5.15 billion yuan in 24/25/26, EPS is 2.70/3.75/4.67 yuan, corresponding PE is 23/17/14x, maintaining a “buy” rating.