Linglong Tyre(SH:601966) Xin Lang Cai Jing·2025-04-29 02:35Core Insights - The company reported a total revenue of 22.06 billion yuan for 2024, representing a year-on-year increase of 9.4%, and a net profit attributable to shareholders of 1.75 billion yuan, up 26.0% year-on-year [1] - In Q1 2025, the company achieved total revenue of 5.70 billion yuan, with a year-on-year increase of 13% but a quarter-on-quarter decrease of 7%, and a net profit of 340 million yuan, down 23% year-on-year but up 740% quarter-on-quarter [1] - The company’s tire production reached 89.12 million units in 2024, a year-on-year increase of 12.65%, while sales were 85.45 million units, up 9.57% year-on-year [1] Financial Performance - The gross margin for 2024 was 22.06%, an increase of 1.05 percentage points year-on-year [1] - In Q1 2025, the gross margin decreased to 14.92%, down 8.51 percentage points year-on-year and 1.16 percentage points quarter-on-quarter [1] - The net profit margin for Q1 2025 was 5.98%, down 2.76 percentage points year-on-year but up 5.32 percentage points quarter-on-quarter [1] Expansion and Investment - The Serbia base commenced production in September 2024, marking the first factory built by a Chinese tire company in Europe, with a capacity of 3 million passenger and light truck tires [2] - The company is collaborating with SUNSET S.A. in Brazil to invest 1.19 billion USD (approximately 8.71 billion yuan) in a project to produce various types of tires, expected to generate annual revenue of 1.063 billion USD and net profit of 166 million USD once operational [2] - The board has approved plans to issue H shares and list on the Hong Kong Stock Exchange to expand financing channels [2] Investment Outlook - The company is projected to achieve net profits of 1.989 billion yuan, 2.375 billion yuan, and 2.852 billion yuan for the years 2025 to 2027, corresponding to price-to-earnings ratios of 10.9, 9.1, and 7.6 times respectively [3]