Linglong Tyre(601966) 华创证券·2024-08-27 03:57Investment Rating - Target price: 23.55 RMB, maintaining a "Strong Buy" rating [1][2] Core Views - The company achieved revenue of 10.38 billion RMB in H1 2024, a YoY increase of 12.37%, and net profit attributable to shareholders of 925 million RMB, a YoY increase of 64.95% [1] - In Q2 2024, the company achieved revenue of 5.335 billion RMB, a YoY increase of 9.96%, and net profit attributable to shareholders of 484 million RMB, a YoY increase of 39.49% [1] - The company announced a profit distribution plan for Q2 2024, proposing a cash dividend of 1.00 RMB per 10 shares, totaling 146 million RMB [1] Operational Performance - Tire production and sales in H1 2024 were 43.39 million and 39.906 million units, respectively, with YoY increases of 18.7% and 10.9% [1] - In Q2 2024, tire production and sales were 21.837 million and 20.922 million units, respectively, with QoQ increases of 1.3% and 10.2% [1] - The average price per tire in H1 2024 and Q2 2024 was 256.8 RMB and 251.6 RMB, respectively, with Q2 prices showing a YoY increase of 0.8% and a QoQ decrease of 4.2% [1] - Gross margin and net profit margin in Q2 2024 were 22.06% and 9.08%, respectively, with YoY increases of 3.40 and 1.92 percentage points [1] Factory Performance - The Thailand subsidiary achieved revenue and net profit of 2.018 billion RMB and 485 million RMB in H1 2024, with a net profit margin of 24.05%, a YoY increase of 5.91 percentage points [1] - The Serbia subsidiary achieved revenue and net profit of 476 million RMB and -54 million RMB in H1 2024, with the loss narrowing and production capacity entering the release phase [1] Financial Data - The company's period expense ratio in H1 2024 was 10.83%, a YoY increase of 1.17 percentage points, mainly due to an increase in financial expenses [1] - The company's sales expense ratio and management expense ratio in H1 2024 were 2.69% and 2.80%, respectively, with YoY decreases of 0.74 and 0.38 percentage points [1] - The company's R&D expense ratio in H1 2024 was 3.92%, a YoY increase of 0.18 percentage points [1] Market Position and Strategy - The company's global supporting volume exceeded 13 million units in H1 2024, maintaining its leading position in the Chinese tire supporting market [1] - The company achieved breakthroughs in supporting new projects for commercial vehicle tires (13 projects) and passenger vehicle tires (21 projects) in H1 2024 [1] - The company's overseas supporting projects also achieved breakthroughs, including projects for Volkswagen Tiguan, BMW X3, and 2 Series [1] Financial Forecast - Revenue for 2024E, 2025E, and 2026E is forecasted to be 22.973 billion RMB, 27.549 billion RMB, and 31.567 billion RMB, respectively, with YoY growth rates of 13.9%, 19.9%, and 14.6% [2] - Net profit attributable to shareholders for 2024E, 2025E, and 2026E is forecasted to be 2.310 billion RMB, 2.888 billion RMB, and 3.695 billion RMB, respectively, with YoY growth rates of 66.1%, 25.0%, and 27.9% [2] - EPS for 2024E, 2025E, and 2026E is forecasted to be 1.57 RMB, 1.96 RMB, and 2.51 RMB, respectively [2]