Tuya Inc

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Tuya Inc (NYSE: TUYA) is a technology company focused on offering Internet of Things (IoT) cloud development platforms and related services. Through its IoT cloud platform, the company delivers a range of solutions, including Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and smart IoT device solutions.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• A strong uptrend began in January 2025, peaking around USD 4.00 in late March 2025. Post-peak, there was a sharp correction in April, breaking below moving averages. Since May, the stock entered a sideways consolidation phase between USD 2.20 and USD 2.80, with recent signs of bullish momentum.
• There crossover with MA 21 falling above MA 50, indicates a bullish momentum. Both moving averages are now sloping upward, suggesting trend reversal from consolidation to potential uptrend. Price currently trades above both MAs, strengthening bullish bias.
• RSI is currently around 68, the RSI is approaching overbought territory (70). This suggests strong momentum, but also indicates caution for potential near-term pullbacks if overbought conditions persist.
• Recent sessions show increasing volume (1.17M) compared to prior consolidation phases. Volume uptick with price breakout suggests buying interest.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~ 37.85% of the total shareholding, signifying concentrated shareholding. Wang (Xueji) and Anchor @ 65 Pte. Ltd. are the biggest shareholders, holding the maximum stake in the company at 13.96% and 13.84%, respectively.

1.4 Key Metrics:

The chart shows that while Tuya’s revenue experienced fluctuations due to trade headwinds and demand shifts, profitability steadily improved. Revenue dipped in Q1 FY25 after peaking in Q4 FY24 but rebounded in Q2 FY25. Net income and margins strengthened consistently from a Q3 FY24 loss to record profits in FY25, driven by expense optimization, reduced share-based compensation, and stronger segment performance, highlighting improved operating efficiency and resilience despite external pressures.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Business Updates

2.2 Insights of Q2FY25:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• A strong uptrend began in January 2025, peaking around USD 4.00 in late March 2025. Post-peak, there was a sharp correction in April, breaking below moving averages. Since May, the stock entered a sideways consolidation phase between USD 2.20 and USD 2.80, with recent signs of bullish momentum.
• There crossover with MA 21 falling above MA 50, indicates a bullish momentum. Both moving averages are now sloping upward, suggesting trend reversal from consolidation to potential uptrend. Price currently trades above both MAs, strengthening bullish bias.
• RSI is currently around 68, the RSI is approaching overbought territory (70). This suggests strong momentum, but also indicates caution for potential near-term pullbacks if overbought conditions persist.
• Recent sessions show increasing volume (1.17M) compared to prior consolidation phases. Volume uptick with price breakout suggests buying interest.

 4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 28, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.