QINGDAO SENTURY TIRE CO.(SZ:002984) Minsheng Securities·2024-08-31 03:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 23.20 CNY per share [3][4]. Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 4.11 billion CNY, up 16.21% year-on-year, and net profit reaching 1.08 billion CNY, up 77.71% year-on-year [3][4]. - The net profit margin for Q2 2024 reached a historical high of 28.76%, driven by strong overseas demand and effective cost management strategies [3][4]. - The company's strategic focus on smart manufacturing is expected to enhance its global competitiveness and operational efficiency [4]. Revenue and Profitability - In H1 2024, the company achieved a revenue of 4.11 billion CNY, with a net profit of 1.08 billion CNY, and a non-recurring net profit of 1.06 billion CNY [3]. - For Q2 2024, revenue was 1.995 billion CNY, with a net profit of 574 million CNY, reflecting a year-on-year increase of 61.12% [3][4]. - The company’s gross margin for H1 2024 was 33.24%, up 10.84 percentage points year-on-year, with Q2 gross margin at 35.27% [3][4]. Sales and Market Demand - The company sold 15.10 million tires in H1 2024, a 10.35% increase year-on-year, with Q2 sales at 7.49 million tires [3][4]. - The U.S. market showed resilience in demand for imported tires, with a 7.47% increase in semi-steel tire imports in H1 2024 [3][4]. Cost Management and Efficiency - The company has implemented internal process reengineering to enhance operational efficiency, resulting in improved profit margins [3][4]. - The average global shipping cost in H1 2024 was 3,156 USD, up 89.85% year-on-year, but is expected to decrease in Q3 2024, alleviating cost pressures [3][4]. Strategic Initiatives - The company is advancing its "833plus" strategy, focusing on smart manufacturing and expanding production capacity in Spain and Morocco [4]. - The reduction of anti-dumping duties on Thai products to 1.24% is anticipated to enhance the company's competitive position and profitability [4]. Financial Projections - Revenue projections for 2024-2026 are 9.75 billion CNY, 11.66 billion CNY, and 13.50 billion CNY, respectively, with net profits expected to be 2.21 billion CNY, 2.48 billion CNY, and 2.84 billion CNY [5][6]. - The report forecasts an EPS of 2.15 CNY for 2024, with a PE ratio of 11 [5][6].