Linglong Tyre(SH:601966) 智通财经网·2025-07-17 12:51Core Viewpoint - The trend of A-share companies seeking secondary listings in Hong Kong continues, with Linglong Tire submitting its prospectus to the Hong Kong Stock Exchange, aiming to raise funds for capacity expansion, R&D enhancement, and global marketing strategy improvement [1][10]. Company Overview - Linglong Tire's product portfolio includes a wide range of passenger and light truck tires, truck and bus tires, and off-road tires, with various specifications for different applications. The company is the largest OE tire manufacturer in China and ranks third globally, while being the largest OE tire manufacturer in the new energy vehicle sector for five consecutive years [4][10]. Financial Performance - Linglong Tire has shown robust growth, with a compound annual growth rate (CAGR) of 13.9% in revenue over the past three years. Revenue figures for 2022, 2023, and 2024 are 17.006 billion RMB, 20.166 billion RMB, and 22.058 billion RMB, respectively [5][6]. - The passenger and light truck tire segment is the largest revenue contributor, increasing from 9.709 billion RMB in 2022 to 14.429 billion RMB in 2024, with its revenue share rising from 57.1% to 65.4% [5][6]. - Linglong Tire's gross profit has also improved significantly, with gross profits of 1.871 billion RMB, 3.601 billion RMB, and 4.344 billion RMB for 2022, 2023, and 2024, respectively, leading to gross margins of 11%, 17.9%, and 19.7% [6]. Global Expansion Strategy - The company has implemented a "7+5" strategy, establishing seven domestic factories and five overseas factories, with two overseas bases in Thailand and Serbia. This strategy aims to accelerate global expansion [7][10]. - Linglong Tire's global tire market is growing, with 2023 global tire sales reaching 1.784 billion units, where the replacement market accounts for approximately 74% of demand [8]. Market Position and Competitive Landscape - The tire industry is highly concentrated, with the top three players (Michelin, Bridgestone, and Goodyear) holding nearly 40% of the market share. Linglong Tire is positioned to compete with these giants as it expands its market presence [8][10]. - The company is also focusing on high-end market segments, having become a supplier for several premium brands, including Volkswagen, and aims to enhance its brand image [10]. Future Outlook - Linglong Tire plans to achieve a production target of 330,900 tons of off-road tires by the end of 2030, capitalizing on the growing demand in this segment [11]. - The funds raised from the Hong Kong listing will support the company's global expansion, technological upgrades, and brand enhancement, solidifying its position in the domestic and international markets [10][11].