Linglong Tyre(SH:601966) Changjiang Securities·2024-09-10 06:09Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming year [6][9][10]. Core Insights - The company reported a revenue of 10.38 billion yuan for the first half of 2024, representing a year-on-year increase of 12.4%. The net profit attributable to shareholders reached 930 million yuan, up 65.0% year-on-year, with a non-GAAP net profit also at 930 million yuan, reflecting an 85.9% increase [5][6]. - In Q2 alone, the company achieved a revenue of 5.33 billion yuan, a 10.0% increase year-on-year and a 5.7% increase quarter-on-quarter. The net profit for Q2 was 480 million yuan, marking a 39.5% year-on-year increase and a 9.8% quarter-on-quarter increase [5][6]. - The company's "7+5" strategy is being implemented, optimizing its global industrial layout while maintaining a focus on research and development to ensure product quality [6][7]. Financial Performance - The overall gross margin for the company was 22.7%, an increase of 4.9 percentage points year-on-year, attributed to improved sales structure and strong overseas demand [6][7]. - In Q2, the company produced 21.84 million tires, a 1.3% increase quarter-on-quarter, with sales reaching 20.92 million tires, a 10.2% increase quarter-on-quarter [6][7]. - The average selling price per tire in Q2 was 255.0 yuan, which decreased by 10.8 yuan from the previous quarter, primarily due to the increased proportion of semi-steel tire production from overseas bases [6][7]. Strategic Developments - The company has made significant progress in its global supply chain, with over 13 million tires supplied in the first half of 2024, including new projects with major domestic and international automotive brands [6][7]. - The company is expanding its production capacity in Serbia and other locations, which is expected to enhance its competitiveness and profitability in the future [6][7][8].