QINGDAO SENTURY TIRE CO.(SZ:002984) Minsheng Securities·2024-07-10 03:00Investment Rating - The report maintains a "Recommended" rating for the company with a current price of 24.01 CNY per share [3][4]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.00 to 1.20 billion CNY for the first half of 2024, representing a year-on-year increase of 64.95% to 97.94% [3]. - The company's "833plus" strategy is progressing steadily, with ongoing investments in smart manufacturing facilities in Spain and Morocco, which will enhance its production capacity [3][4]. - The reduction of anti-dumping duties on tires produced in Thailand is anticipated to improve the company's profitability and competitive position in the market [4]. Financial Forecasts - Revenue projections for 2024-2026 are 9.745 billion CNY, 11.661 billion CNY, and 13.497 billion CNY, respectively, with corresponding net profits of 2.212 billion CNY, 2.483 billion CNY, and 2.838 billion CNY [4][5]. - The expected earnings per share (EPS) for 2024-2026 are 2.15 CNY, 2.42 CNY, and 2.76 CNY, with price-to-earnings (PE) ratios of 11, 10, and 9, respectively [4][5]. - The company's gross margin is projected to improve from 25.21% in 2023 to 30.66% in 2024, while the net profit margin is expected to rise from 17.45% to 22.70% in the same period [6][7]. Production Capacity and Global Expansion - The company has established a total planned production capacity of 40 million semi-steel tires and 2 million all-steel tires overseas, which will account for 74% and 100% of its total capacity, respectively [3][4]. - The ongoing construction of the second phase of the Moroccan project is expected to further enhance the company's production capabilities [3].