7 Cheap Chinese Penny Stocks to Buy According to Hedge Funds

04. Tuya Inc. (NYSE:TUYA)

Number of Hedge Fund Holders: 10

Tuya Inc. (NYSE:TUYA) stands out as a leading innovator in the smart home and IoT industry, capitalizing on its advanced smart lighting solutions and the integration of generative AI technology. Founded in 2014, Tuya Inc. (NYSE:TUYA) has built a strong ecosystem that collaborates with a diverse range of brands and original equipment manufacturers (OEMs) to develop and deploy smart devices worldwide. Despite facing competition from tech giants like Google and Amazon, Tuya Inc. (NYSE:TUYA) strategic alliances and ongoing innovation make it resilient and well-positioned for growth. The company’s recent financial performance highlights this potential, with a remarkable 29.9% year-over-year revenue increase from $47.48 million in March 2023 to $61.66 million in March 2024. This growth is primarily driven by the IoT Platform-as-a-Service (PaaS) sector, which saw a 35.7% rise in revenues. Furthermore, Tuya Inc. (NYSE:TUYA) gross profit margin improved from 44.28% to 47.82%, reflecting its focus on high-margin products and cost efficiency.

Tuya Inc. (NYSE:TUYA) forward-looking approach includes the launch of a revolutionary smart lighting solution and plans to integrate generative AI into its smart devices by Q4 2024. These developments are expected to enhance user experience and drive demand for Tuya Inc. (NYSE:TUYA) products, potentially leading to an 18% revenue growth in the coming year. Analysts believe that Tuya Inc. (NYSE:TUYA) innovative edge and strategic partnerships will allow it to maintain a competitive position in the rapidly evolving IoT market.

Tuya Inc.’s (NYSE:TUYA) strong financial performance, cutting-edge technological advancements, and strategic market positioning make it a compelling investment opportunity with significant growth potential. The company’s ability to innovate and adapt in a competitive landscape supports a bullish outlook for its future prospects.

The number of hedge funds in Insider Monkey’s database owning stakes in Tuya Inc. (NYSE:TUYA) fell to 10 in Q2 2024, from 11 in the preceding quarter. The consolidated value of these stakes is nearly $6.38 million. Among these hedge funds, Lei Zhang’s Hillhouse Capital Management was the company’s leading stakeholder in Q2.