QINGDAO SENTURY TIRE CO.(SZ:002984) Xin Lang Cai Jing·2025-11-05 06:44Core Viewpoint - The company reported its Q3 2025 results, showing a slight revenue increase but a significant decline in net profit, indicating challenges in profitability despite stable sales growth and operational improvements [1][2]. Revenue and Profitability - For the first three quarters of 2025, the company achieved revenue of 6.44 billion yuan, a year-on-year increase of 1.5%, while net profit attributable to shareholders was 1.02 billion yuan, down 41.2% year-on-year [1]. - In Q3 2025, the company recorded revenue of 2.32 billion yuan, up 3.9% year-on-year and 12.4% quarter-on-quarter; net profit was 340 million yuan, down 47.1% year-on-year but up 10.3% quarter-on-quarter [1][2]. Sales Performance - Q3 2025 saw tire sales of 8.441 million units, reflecting a year-on-year increase of 2.2% and a quarter-on-quarter increase of 12.7%, driven by improved operational rates at the Qingdao plant and slight capacity increases in Morocco [2]. Cost and Margin Analysis - The gross margin for Q3 2025 was 23.0%, a decrease of 3.4 percentage points quarter-on-quarter; the net margin was 14.8%, down 0.3 percentage points quarter-on-quarter, primarily due to fixed asset depreciation from the Moroccan plant and the full impact of U.S. tariffs [2]. Operational Efficiency - The company maintained stable expense ratios in Q3 2025, with sales, management, R&D, and financial expense ratios at 2.2%, 2.4%, 1.6%, and 1.4% respectively, showing minor fluctuations compared to previous periods [2]. Future Outlook - The company anticipates continued revenue growth driven by improved external factors such as declining raw material prices and increased overseas capacity, particularly in Morocco, alongside a strong order backlog and customer loyalty [2][3]. - The Moroccan plant is expected to resolve power issues by the end of November, with production ramp-up anticipated by the end of 2025 to Q1 2026, while the Qingdao plant's operational rates are also expected to improve [3]. Strategic Positioning - The company has positioned itself in the high-end market through sustained R&D investments, becoming one of the few international manufacturers of aviation tires, which enhances its brand strength and profitability [3]. - The global tariff policies present opportunities for the company, as it can leverage its strong product performance and brand reputation to support future order growth [3]. Earnings Forecast - The company revised its revenue forecasts for 2025-2027 to 8.7 billion yuan, 11.1 billion yuan, and 11.6 billion yuan, with corresponding net profits of 1.4 billion yuan, 2.2 billion yuan, and 2.7 billion yuan, reflecting a mixed growth outlook [4].