Tuya Inc.'s AGM Resolutions Signal a Golden Opportunity in AI-Driven Smart Ecosystems

The recent Annual General Meeting (AGM) of Tuya Inc. (TUYA/HKEX:2391) has sent a resounding message to investors: the company is doubling down on its AIoT (Artificial Intelligence of Things) platform expansion, low-carbon initiatives, and global developer ecosystem scaling—positions that could unlock exponential value in the coming years. With a 29.8% revenue surge in 2024 and its first-ever GAAP net profit, Tuya’s strategic clarity and capital allocation discipline now present a compelling case for investors seeking exposure to the $1.1 trillion IoT market. Here’s why this is a buy.

AI Innovation: The Engine of Tuya’s Ecosystem Dominance

At the core of Tuya’s AGM resolutions is its commitment to AI-driven smart device innovation, which aims to redefine user interactions with IoT ecosystems. By embedding AI into its platform, Tuya is enabling developers to create devices that learn user preferences, predict needs, and optimize energy use—transforming homes and industries into adaptive, intelligent spaces.

This focus aligns with a $447 billion AIoT market opportunity by 2028. Tuya’s progress is already evident:
- Its global developer community has grown to 1.316 million (up 32.6% YoY), with premium IoT PaaS customers (those spending >$100k annually) contributing 86.9% of IoT PaaS revenue.
- The Dollar-Based Net Expansion Rate (DBNER) for IoT PaaS hit 122% in 2024, signaling strong retention and revenue growth from existing partners.

Capital Allocation: Prudent Discipline Meets Aggressive Growth

Tuya’s AGM also emphasized operational efficiency and ESG-aligned expansion, underpinned by a $1.017 billion cash reserve—a war chest for strategic acquisitions, R&D, and shareholder returns. Key highlights include:
1. Profitability Milestones:
- First GAAP net profit of $5.0 million in 2024.
- Non-GAAP net profit jumped 268.5% YoY to $75.3 million, with operating margins hitting 10.3% in Q4 2024 (vs. -0.4% in 2023).

1. Shareholder Returns:
2. A second dividend in 2024 signals confidence in cash flow stability.
3. The Dollar-Based Net Expansion Rate for IoT PaaS rose to 122%, proving customer stickiness.

ESG as a Growth Multiplier: Low-Carbon Tech Meets Global Demand

Tuya’s AGM resolutions explicitly prioritize green and low-carbon IoT solutions, a critical edge in markets where 85% of consumers now favor sustainable brands. By embedding energy-efficient AI into smart devices, Tuya is targeting high-growth sectors like smart cities and industrial automation.

This ESG focus isn’t just ethical—it’s profitable. Tuya’s smart solutions revenue (e.g., integrated AI devices) soared 58.3% in 2024, outpacing IoT PaaS growth. Investors should note that this segment is expanding into enterprise and industrial markets, where margins are typically higher than consumer products.

Why Buy TUYA/HKEX:2391 Now?

1. Timing: The AGM resolutions come as global IoT adoption accelerates post-pandemic, with enterprises and governments prioritizing smart infrastructure. Tuya’s developer ecosystem and AI tools position it to capture this wave.
2. Margin Expansion: The 2024 non-GAAP operating margin of 7.6% hints at a path to sustained profitability.
3. ESG Differentiation: Low-carbon initiatives align with regulatory trends (e.g., EU’s Green Deal) and consumer preferences.

Risks and the Case for Caution

• Global Economic Slowdown: IoT demand could lag if macroeconomic pressures persist.
• Competitor Moves: Rivals like Amazon and Google are intensifying AIoT investments.

Yet Tuya’s cash reserves ($1.017B) and developer ecosystem scale mitigate these risks. The company is well-positioned to outspend rivals on R&D and partnerships.

Conclusion: Tuya’s AGM Resolutions Are a Buy Signal

Tuya’s AGM resolutions crystallize a clear path to leadership in AIoT ecosystems. With 32.6% YoY developer growth, a 122% DBNER, and a $1 billion cash war chest, the company is primed to capitalize on rising demand for intelligent, sustainable IoT solutions.

For investors seeking a high-growth, ESG-aligned tech play, Tuya’s stock offers a rare blend of profitability, scalability, and strategic focus. The AGM’s emphasis on AI and ESG isn’t just visionary—it’s actionable.

Action: Buy TUYA/HKEX:2391 for long-term tech infrastructure exposure.

Investors should conduct their own due diligence and consider market volatility.