GS(601500) KAIYUAN SECURITIES·2024-10-31 06:39Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's net profit is under short-term pressure, but it maintains a "Buy" rating due to expected growth in revenue and profit in the coming years [1] - The company has successfully established production bases in China, Thailand, and Cambodia, enhancing its competitive edge in the international market [3] Financial Performance Summary - In Q3 2024, the company achieved operating revenue of 4.988 billion yuan, a year-on-year increase of 35.56% [1] - The net profit attributable to the parent company for Q3 2024 was 0.93 billion yuan, a year-on-year decrease of 7.16% [1] - The company’s tire production and sales in Q3 2024 were 5.7025 million and 5.518 million units, respectively, representing a quarter-on-quarter growth of 21.74% and 27.37% [2] - The company’s revenue projections for 2024-2026 are 7.137 billion yuan, 9.669 billion yuan, and 11.663 billion yuan, respectively, with year-on-year growth rates of 40.9%, 35.5%, and 20.6% [4] Profitability Metrics - The gross profit margin is expected to improve from 15.7% in 2023 to 19.7% in 2026 [4] - The net profit margin is projected to increase from 4.3% in 2023 to 10.7% in 2026 [4] - The return on equity (ROE) is forecasted to rise from 3.9% in 2023 to 15.6% in 2026 [4] Production Capacity and Expansion - The company’s production capacity in Thailand has reached over 27,000 units per day, with further expansions planned in Cambodia and domestic facilities [3] - The company is leveraging the "dual circulation" strategy to enhance its production capabilities and market reach [3]