Linglong Tyre(SH:601966) Great Wall Securities·2024-09-20 04:12Investment Rating - The report maintains a "Buy" rating for Linglong Tire, expecting the stock price to outperform the industry index by over 15% in the next six months [14]. Core Views - Linglong Tire achieved significant growth in 1H24, with revenue reaching 10.38 billion yuan, up 12.37% year-on-year, and net profit attributable to shareholders increasing by 64.95% to 0.925 billion yuan [1][2]. - The company is expanding its production capacity in Serbia, which is expected to drive revenue and profit growth in the coming years [6][2]. - The report highlights the company's strong position in the high-end tire market, with numerous new projects in both domestic and international markets [2][6]. Financial Summary - Revenue Growth: The company’s revenue is projected to grow from 23.975 billion yuan in 2024 to 31.129 billion yuan in 2026, with year-on-year growth rates of 18.9%, 15.9%, and 12.0% respectively [1][6]. - Net Profit: The net profit is expected to increase from 2.225 billion yuan in 2024 to 3.361 billion yuan in 2026, with growth rates of 60.0%, 22.4%, and 23.4% [1][6]. - Earnings Per Share (EPS): EPS is projected to rise from 1.51 yuan in 2024 to 2.28 yuan in 2026 [1][6]. - Return on Equity (ROE): ROE is expected to improve from 9.8% in 2024 to 11.9% in 2026 [1][6]. Operational Highlights - In 1H24, the company produced 43.39 million tires, a year-on-year increase of 18.71%, and sold 39.91 million tires, up 10.88% [2][6]. - The company has made significant strides in the high-end tire market, securing new projects with major domestic and international automotive brands [2][6]. - The expansion of the Serbian facility is anticipated to enhance production capacity significantly, with plans to produce 1.1 million high-performance tires annually upon completion [6].