TUYA(TUYA) 海通证券·2024-09-19 00:09Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company has shown a significant turnaround in profitability, with adjusted net income reaching 40 million [3][4] - Revenue growth is driven by IoT PaaS and smart solutions, with IoT PaaS revenue growing 33.7% YoY to 16.8 million in H1 2024 [3] - The company achieved its first positive adjusted operating profit of 0.0589 per ADS, totaling approximately 135 million, a 29.1% YoY increase, with IoT PaaS contributing 74% of total revenue [3] - Gross margin improved to 47.9% in H1 2024, up 2.3 percentage points YoY, driven by IoT PaaS margin expansion to 47.1% [3] - R&D expenses decreased by 14.8% YoY to 46.5 million, with R&D expense ratio dropping to 34.44% [3] - The company expects revenue to grow to 280 million in 2024, 389 million in 2026, representing a CAGR of 18.4% [5][6] Business Strategy - The company is focusing on expanding its high-quality customer base, non-consumer electronics sectors, and developer platform, with 1.192 million developers on its platform as of Q2 2024, a 40.8% YoY increase [4] - The company is leveraging generative AI to enhance its IoT offerings, with applications in smart pet cameras, bird feeders, and lighting systems [6] - The company has empowered 1 million AIoT device SKUs as of Q2 2024, reflecting its leadership in the IoT platform space [4] Valuation - The report values the company at a 2024 dynamic PS ratio of 5-6x, with a fair value range of 2.93 per share [6] - The company's PS ratio is significantly lower than peers, with a 2024E PS of 3x compared to the peer average of 16x [7] Industry Position - The company is positioned as a leader in the neutral AIoT platform space, with a strong focus on IoT PaaS and smart solutions [1][3] - The company's strategic focus on high-margin IoT PaaS and smart solutions is expected to drive long-term revenue and profit growth [3][4]