KTAs from Tuopu Group Call; Expecting a Recovery in 2H

Research evidence excerpt

KTAs from Tuopu Group Call; Expecting a Recovery in 2H

China (PRC) | Autos & Auto Parts

Tuopu EquityMayResearch14, 2026

TARGET | ESTIMATE CHANGEKTAs from Tuopu Group Call; Expecting a

RATING BUYRecovery in 2H

PRICE Rmb67.09^

We hosted Tuopu for an online group call, Key messages include: 1)

Rmb79.50 (Rmb80.40) |

Mgmt lowered expectations for 1H26, but expected a recovery in 2H; PRICE TARGET | % TO PT +18%

2) The company pursues M&As amid industry consolidation, targeting 52W HIGH-LOW Rmb86.88 - Rmb43.30

tier-2 suppliers with solid customer bases but weak operating efficiency; FLOAT (%) | ADV MM (USD) 39.7% | 307.74

3) Thailand plant is positioned as a key production base for overseas MARKET CAP RMB113.1B | $16.6B

humanoid robot projects which is expected to start equipment installation TICKER 601689 CH

in 3Q. Details below. ^Prior trading day's closing price unless otherwise

noted.

2026 outlook. Mgmt lowered 1H expectations as they saw revenue/profit growth remained

challenging in 1H26 due to the sluggish growth in domestic auto retail sales, increased raw- FY (Dec) CHANGE TO JEFe JEF vs CONS

material prices, and elevated depreciation cost (D&A costs accounted for c.9% of sales in 2026 2027 2026 2027

1Q, vs historical average of c.5%). Cost pass-through discussions with OEMs tend to be REV +2% +3% NA NA

protracted, with compensation expected to be phased in from 2Q onward. But mgmt expects EPS -5% -3% -16% -19%

revenue/earnings growth to pick up in 2H. Meanwhile, Tuopu is advancing M&A amid industry

consolidation, focusing on Tier-2 suppliers with solid customer bases but weak operating 2026 (RMB) Q1 Q2 Q3 Q4 FY

efficiency, including targets in thermal-management components. EPS -- -- -- -- 1.85

Overseas manufacturing footprint.