QINGDAO SENTURY TIRE CO.(SZ:002984) Huachuang Securities·2024-10-20 08:16Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 37.50 CNY, compared to the current price of 25.38 CNY [2][3]. Core Insights - The company reported a steady growth in production and sales, achieving a record quarterly profit. For the first three quarters of 2024, the company generated revenue of 6.34 billion CNY, a year-on-year increase of 10.42%, and a net profit attributable to shareholders of 1.726 billion CNY, up 73.72% year-on-year [2][3]. - The company has successfully mitigated external adverse conditions, with gross margin and net profit margin improving significantly. The gross margin for Q3 was 39.52%, reflecting a 4.25 percentage point increase from the previous quarter [3]. - The company's global expansion continues to progress, with the first batch of tire products from its Morocco factory launched on September 30, 2024. This factory is expected to enhance the company's competitiveness in the mid-to-high-end market [3]. Financial Performance Summary - For Q1-Q3 2024, the company produced 24.243 million tires, a 14.1% increase year-on-year, with sales reaching 23.358 million tires, up 7.9% year-on-year [2][3]. - The company’s revenue is projected to grow from 7.842 billion CNY in 2023 to 9.201 billion CNY in 2024, with a year-on-year growth rate of 17.3% [4]. - The net profit attributable to shareholders is expected to rise from 1.369 billion CNY in 2023 to 2.308 billion CNY in 2024, reflecting a growth rate of 68.6% [4].