QINGDAO SENTURY TIRE CO.(SZ:002984)2024-09-01 02:30Investment Rating - The report maintains a "Buy" rating for the company, with expected revenue growth and profitability improvements in the coming years [4]. Core Views - The company reported a record high performance in the first half of 2024, achieving a revenue of 4.11 billion yuan, a year-on-year increase of 16.21%, and a net profit attributable to shareholders of 1.08 billion yuan, a year-on-year increase of 77.71% [2]. - Tire sales and profitability have both improved, with the company selling 15.10 million tires in the first half of 2024, a year-on-year increase of 10.35% [2]. - The company has seen a significant reduction in anti-dumping duties on tires exported to the U.S., which has positively impacted its profitability [2]. - The company is expanding its global production capacity, with ongoing projects in Morocco and Spain expected to enhance its competitive edge and growth potential [2][4]. Financial Performance Summary - Revenue projections for 2024-2026 are 9.27 billion, 11.34 billion, and 13.02 billion yuan, respectively, with net profits of 2.13 billion, 2.37 billion, and 2.72 billion yuan, reflecting year-on-year growth rates of 55.78%, 10.99%, and 14.77% [4][5]. - The company's earnings per share (EPS) are projected to be 2.07, 2.30, and 2.64 yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 11.13, 10.03, and 8.74 [4][5]. - The gross profit margin and net profit margin for the first half of 2024 were 33.24% and 26.21%, respectively, showing significant improvements compared to the previous year [2]. Market Position and Strategy - The company is capitalizing on the cost-performance advantage of domestic tire brands, gradually increasing its market share despite intensified global competition [2]. - The company has established a dual production base in Qingdao and Thailand, with plans for further expansion in Africa and Europe, which will support its growth strategy [2][4].