GS(SH:601500) Guotai Junan Securities·2024-08-28 16:38Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company is experiencing high growth in performance for the first half of 2024, driven by multiple projects and production bases. A capacity release period is expected from 2024 to 2026, with improvements in intelligent production and brand building contributing to the company's value enhancement [3][4]. Summary by Sections Financial Performance - For the first half of 2024, the company reported revenue of 3.068 billion yuan, a year-on-year increase of 36.91%. The net profit attributable to shareholders was 286 million yuan, up 393.32% year-on-year, while the net profit excluding non-recurring items reached 275 million yuan, a 514.84% increase year-on-year [4]. - In Q2 2024, revenue was 1.624 billion yuan, reflecting a 36.32% year-on-year increase and a 12.56% quarter-on-quarter increase. The net profit attributable to shareholders was 133 million yuan, up 184.94% year-on-year but down 12.48% quarter-on-quarter [4]. Market Conditions - The domestic tire production and sales remain at high levels, with strong demand for semi-steel tires. The company's factories in Thailand and Cambodia are ramping up production, with the Cambodia Phase I project reaching full capacity in May [4]. - The average price of natural rubber as of August 23 was 14,933 yuan per ton, with a monthly increase of 3.28% and a half-year increase of 13.27%. Carbon black prices were 7,600 yuan per ton, with a half-year decrease of 8.43% [4]. Strategic Initiatives - The company is implementing a "5X" strategy with multiple bases in Wuxi, Thailand, and Cambodia, progressing well on various projects. The period from 2024 to 2026 is anticipated to be a capacity release phase, indicating strong growth potential [4]. - The company is focusing on internationalization, intelligent manufacturing, and green upgrades, with smart factories significantly improving production efficiency and energy savings [4].