Linglong Tyre(SH:601966) Guotai Junan Securities·2024-08-27 03:58Investment Rating - The report maintains a rating of "Buy" for the company [6][11] - The target price is set at 28.43, with the current price at 15.49 [6][11] Core Insights - The company's Q2 2024 performance met expectations, with rapid capacity ramp-up at the Serbia project [3][11] - With the release of mid-to-long-term capacity and a focus on both the supporting and replacement markets, along with ongoing R&D, the company's performance is expected to continue growing [3][11] Financial Summary - Revenue for 2024 is projected at 21,984 million, with a growth of 9.0% from 2023 [4] - Net profit attributable to shareholders is expected to reach 2,166 million in 2024, reflecting a 55.8% increase from 2023 [4] - Earnings per share (EPS) is forecasted to be 1.47 in 2024, increasing to 2.00 by 2026 [4][11] - The return on equity (ROE) is anticipated to rise from 6.7% in 2023 to 9.7% in 2024 [4] Operational Highlights - In the first half of 2024, the company achieved revenue of 10,379 million, a year-on-year increase of 12.37%, and a net profit of 925 million, up 64.95% [11] - The tire production volume in Q2 2024 was 21.84 million units, a year-on-year increase of 12.34% [11] - The average selling price per tire was 251.6 yuan, showing a slight year-on-year increase of 0.83% [11] Market Position and Strategy - The company is actively restructuring its domestic and international retail and supporting markets [11] - The Serbia plant is expected to fully ramp up production, while the Thailand plant benefits from reduced tariffs, enhancing product competitiveness [11] - The company is advancing its "7+5" layout, with significant projects in both domestic and overseas markets [11]